Property Matters – Starting a Real Estate Agency in India
Achieve your business goals by starting a real estate agency in India. 3E Accounting is ready to help pair ambition with success!
Starting a real estate agency in India right now may be the most sensible business decision you can make. India’s robust real estate market is poised to grow exponentially within the next decade. Analysts predict a USD one trillion markets and getting a piece of this pie will be a sweet deal indeed.
India’s real estate sector is being driven by the rapid rate of urbanisation and a rising economy. The government has introduced significant changes including new legislative infrastructures, zoning laws and banking systems. There are also more accessible home loans and financial schemes to sustain growth in this sector.
Starting Your Real Estate Agency
India’s real estate sector consists of residential, commercial and land. Thus far, realtors in India have operated as unregistered businesses. Unlike other countries such as Malaysia or the US, there have been no formal processes in India to become a certified realtor.
However, with the introduction of the Real Estate Regulations and Development Act (RERA) and other reforms, the whole sector is becoming more structured. India has also enhanced transparency by introducing Title Insurance and Real Estate Investment Trusts (REITs) to encourage investor confidence.
Currently, there are several mandatory regulations to follow before you can start your real estate agency or brokerage firm. Firstly, you need to be a licensed sales agent, after which you can apply to become a licensed real estate broker. Licenses are granted by the Deputy Commissioner of the district where your business will be operating.
The next step is to set up your company which can be one of the following:
- Private Limited Company
- Limited Liability Partnership
- Partnership Firm
- One Person Company.
Each has its own set of rules and regulations that need to be met. Upon successful submission, the Registrar of Companies will issue a Certificate of Incorporation. Once this is done, the agency needs to apply for:
- Service tax registration
- GST registration
- Local registration under RERA based on place of business
It also helps to have a business plan ready and to have done some in-depth market research. This will ensure that your business in on track to capturing the relevant market segment successfully.
New Age Realtors
Due to the many changes that are occurring in the real estate sector, starting a real estate agency in India can be a tedious process. There are still procedural hiccups to smooth out. The business itself will need serviced suites to operate from. As most customers are now very tech-savvy and start their searches online first, agencies will need an excellent web presence as well.
Complications can arise at any juncture; hence it is always best to get professional assistance. 3E Accounting offers a smooth transition from idea to reality with its range of business solutions. The right preparation with the right partners will be well worth the work.
Contact 3E Accounting today for a fresh start to your business.
