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In 2025, the Indian real estate industry market size is estimated at USD 0.66 trillion. It is anticipated to reach USD 1.04 trillion by 2030, at a CAGR of 9.51% during the forecast period 2025-2030.
For businesses, the real estate industry offers a great potential for high returns and wealth creation opportunities. This industry provides inflation protection and a sense of security that is unmatched by other investment avenues.
In this blog post, we shall discuss which license is required to start a real estate business in India.
The real estate industry is one of the most significant sectors in the country. There is a high demand for real-estate and the potential for substantial returns on investment. As a result, starting a real-estate business appears to be a promising opportunity.
The sector is experiencing major growth due to urbanization, a rising population, and an increasing interest among individuals in investing in properties. Additionally, the Real Estate Regulatory Authority (RERA), and other government authorities, are working to establish a more transparent and stable market.
Overall, these factors make the real-estate business quite an attractive venture to pursue.
The following licenses are registrations are required for starting a real-estate business in India:
To open a real-estate business, you don’t need to register your business. You can operate it as a sole proprietorship or a partnership firm, both of which do not require mandatory registration. However, in these business structures, the owner or owners are personally liable for any debts and losses incurred by the business.
Additionally, unregistered businesses often struggle to access funding, as they are perceived as less credible than registered ones. Therefore, it is advisable to consider business registration. Therefore, business registration is recommended.
For registering a business, there are many business models to choose from including limited liability partnership, private limited company, one person company or a public limited company. All these business models need to be registered with the Registrar of Companies (ROC) in India.
The registration process needs to be completed online via MCA portal using the prescribed form. Along with the form, all the necessary documents must be submitted. ROC will then evaluate the application and decide whether to register the business or not. Upon approval, the business will be registered and it’ll receive an incorporation certificate.
To act as a mediator in sale or purchase of properties (incl. residential or commercial), it is a mandatory requirement to secure RERA registration. Developers undertaking housing or commercial construction projects also require this registration. Individuals or real-estate businesses cannot legally advertise or sell real-estate properties without obtaining the RERA registration.
To secure this registration, the applicant must visit the official RERA website of their state or union territory and file an application form there along with submission of necessary documents.
Once the application is approved, the applicant will be registered with RERA and receive a RERA registration number. This number must be quoted in all property dealings as well as advertisements.
Every commercial establishment in India needs to obtain a Shop and Establishment License under the Shop and Establishment Act of the respective state or union territory. This requirement is applicable to real-estate offices as well.
The shop and establishment license basically serves as proof of the existence of the commercial entity. Generally, this license is to be obtained within 30 days of commencing business operations. The local municipal authority or labour department of the state/union territory usually issues the shop and establishment license.
To apply for this license, an application must be filed along with submission of documents like business premises address proof, owner's identity proof and business registration details. Upon issuance of license, it needs renewal periodically on the basis of validity period.
GST registration is a mandatory registration for businesses if their annual turnover exceeds the threshold limit, which is currently Rs. 20 lakhs for service providers and Rs. 40 lakhs for goods suppliers. In the real-estate sector, on sale of under-construction properties and services rendered by real-estate agents and brokers, GST is applicable.
To register for GST, the process needs to be completed online through the official GST portal. After successfully getting registered, the business is provided with a Goods and Services Tax Identification Number. This number needs to be quoted in all the tax invoices as well as transactions.
The real estate business is one of the most popular businesses in India. It can be found at almost every corner in the country. Despite its widespread presence, many entrepreneurs choose to operate this business due to the high demand for properties, particularly in metropolitan areas.
Want to start a real estate business? Connect with the Registrationwala team. We’ll help you secure RERA registration from the Real Estate Regulatory Authority!
Q1. Which authority’s approval is required to operate a real-estate business in India?
A. The approval of the Real-Estate Regulatory Authority is required to operate a real-estate business in India.
Q2. Do real-estate agents and brokers need to secure GST registration?
A. Yes, real-estate agents and brokers need to secure GST registration if their annual turnover exceeds the threshold limit.
Q3. Does each state and union territory have its own designated RERA authority?
A. Yes, each state and union territory has its own designated RERA authority.
Q4. Which real estate license is required to serve as a property broker in India?
A. The RERA license is required to serve as a property broker in India.
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