The real estate sector in India is the second-largest employment generator after agriculture and the third-largest sector in terms of Foreign Direct Investment (FDI). With the market projected to reach ₹65,000 crores by 2024-25, it presents a lucrative opportunity for new businesses.
Why Register a Real Estate Company in India?
The Indian government has introduced initiatives like:
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Smart City Project (100 smart cities)
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Pradhan Mantri Awas Yojana (PMAY) (20 million affordable houses)
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Real Estate Investment Trusts (REITs), which could unlock ₹1.25 trillion in market potential
These developments make it essential for real estate businesses to establish themselves legally and benefit from the growing sector.
Minimum Requirements for Registering a Real Estate Company
To register a Private Limited Company for real estate, the following conditions must be met:
✅ Minimum of 2 shareholders
✅ At least 2 directors (one must be an Indian resident)
✅ Digital Signature Certificate (DSC) for both directors
✅ Director Identification Number (DIN) for both directors
✅ No minimum authorized share capital requirement
✅ Directors and shareholders can be the same individuals
Documents Required for Registration
For Directors:
📌 PAN Card (for residents) or Passport (for non-residents)
📌 Proof of identity (Voter ID, Driving License, or Passport)
📌 Residential proof (Bank Statement, Utility Bill, not older than 2 months)
📌 Consent to act as a director (Form INC-9)
📌 Declaration of interest in other entities
For the Company:
📌 Sale Deed/Lease Deed for the registered office
📌 Utility Bill (Telephone, Electricity, or Gas, not older than 2 months)
📌 No Objection Certificate (NOC) from the property owner
📌 Memorandum of Association (MoA) & Articles of Association (AoA)
For Subscribers:
📌 PAN Card (for residents) or Passport (for non-residents)
📌 Identity proof (Voter ID, Driving License, or Passport)
📌 Residential proof (Bank Statement, Utility Bill, not older than 2 months)
Note: For foreign directors or subscribers, all documents must be notarized and apostilled as per legal requirements.
Key Benefits of Private Limited Company Formation
✔ Separate Legal Entity: A registered company has a distinct legal identity, separate from its owners.
✔ Perpetual Succession: Business operations continue uninterrupted despite changes in directors or shareholders.
✔ Limited Liability: Shareholders’ liability is restricted to the amount of unpaid share capital.
✔ Easy Ownership Transfer: Ownership can be transferred through share transfers.
✔ 100% FDI Allowed: Foreign entities and individuals can directly invest in a private limited company.
✔ Enhanced Credibility: A registered company appears in government databases, boosting trust among clients and investors.
Conclusion
Registering a real estate company in India is a strategic move to benefit from the sector’s growth. With government support, increased FDI, and rising demand for real estate, formal company registration ensures legal compliance, credibility, and long-term success.
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