If you are thinking of starting Real Estate Business in India then you have to follow the rules and regulation of the Real Estate Regulatory Authority (RERA). RERA is a government body which came into force in 2017. The government enacted the RERA act which makes it compulsory for all residential and commercial real estate projects with land coverage of over 500sq. or eight apartments, to register with the RERA. If you want to become an agent who mediates real estate deals then also you have to register with the RERA. This article talks about the Real Estate business and its compulsory registration and other important legal registration.
How to start Real Estate Business in India
- First of all, you have to get knowledge of the market so it will help you, Research is very important in Real Estate Business because after research you can decide where you want to invest and how it will generate profit.
- Get Real Estate Agent License from the RERA, it is very important registration because it will give you security under the RERA act, and in case of violation of your right you will get a remedy. It is compulsory for all Agents who mediate real estate deals. Without registration, you do not work as a real estate agent so you should register with the RERA.
- Get Real Estate Projects License, It is a very important registration and it is mandatory for those projects which cover over 500 sq. land or eight apartments, in case of failure of registration you may have to face legal consequences, so you should be done your registration with the RERA.
- Get your Business organization registration; it is very important to register your registration. You can register your organization as LLP/company/Sole Proprietorship/Partnership firm/One Person Company/other. This is a very important registration because it will give you many benefits and also gives you a tax deduction.
- You have to register your Real Estate Business with the GST because it is mandatory for those whose turnover is more than 20 lakh rupees and in some state, it is mandatory for those whose turnover is more than 10 lakh rupees. In case of failure of registration, you have to pay a huge fine or you may get the punishment of imprisonment. In your Invoice, you have to mention your GST number so you should consider this.
- You have to promote your business, so it will help you to generate customers.
LLP Incorporation
Above mentioned Incorporation of your Real Estate Business as an organization is very important so you can incorporate your business as Limited Liability Partnership (LLP). It is very easy to incorporate LLP because its procedure is easy. There are two or more than two persons requires for Incorporation of an LLP. It is governed by the Limited Liability Partnership Act. LLP Registration is mandatory; you can register your LLP with the Ministry of Corporate Affairs.
A procedure of Registration is easy; you can file your application online. This year government changes its procedure so now it is easier; first, you have to generate your Digital Signature Certificate from the MCA. Then you have to reserve your unique name for your LLP which can obtain through LLP-RUN web services, then you have to file the Fillip form, it is an incorporation form, you have to mention all details of partners and LLP. You have to attach some supporting documents. Then you have to pay a fee for incorporation. After successful registration, you will get your license. You have to file your LLP agreement to the ROC after registration, it is mandatory. So it is very important to register so it will give you many benefits like it is a separate legal entity so it can sue or can be sued and there is a limited liability on partners.
Udyog Aadhar
Nowadays Udyog Aadhar Registration is very important because it will give you many benefits. Udyog Aadhar changes the earlier procedure of registration under MSME. It is a unique number which is allotted by the Ministry of MSME. After obtaining Udyog Aadhar you will get a subsidy from the government and you can take benefits from the government schemes. After obtaining Udyog Aadhar you will get a loan on low-interest rates so it will help your business. If you want to register your Real Estate Business with Udyog Aadhar then you can file your Udyog Aadhar memorandum online, and it does not require any attachment of documents, you have to fill some important details of your business in the memorandum. So the process is very simple and easy you can file this online.
Conclusion
As you can see above that Registration of your Real Estate business is very important and mandatory so you should be done your registration and you should also form your business as an organization, as you can see LLP is a good option for you and Udyog Aadhar is also important registration to get benefits from the government schemes. So you should consider the above-given points.
