21 Ways on How to Register Real Estate Business in India

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How To Start Real Estate Business In India? | Tata Capital

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1. The Background:

How to Register Real Estate Business in India

If you are a good salesperson with knowledge and strong convincing power, then this business can turn your financial condition for good. Office space with a good location is the only investment required with experience/knowledge of types of properties and documentation processes. Honest public relations and impressive communication will help you become a successful real estate agent/broker/builder/financer, etc.

2. How to Register Real Estate Business in India

With a population of more than one billion and still growing, India offers companies a large, built-in and dynamic potential market to explore. If you are interested in conducting business in this market, you need to establish your company’s legal presence in India by registering your business and filing the appropriate forms with the proper Indian authorities.

Before you register your company in India, it’s a good idea to acquaint yourself with some basic facts about the country, its population and business practices if you aren’t familiar with the country or haven’t visited.

  • If you’re not familiar with the general landscape in India, from information on its society and customs to business practices, getting to know the landscape will smooth the process of registering and conducting your business in the country.
  • Companies in the United States, for example, often conduct business on the basis of transactions, while Indian business is still largely relationship-based. Knowing the right network of people is likely to further your business more than focusing on specific transactions.
  • Knowing cultural differences is important, too. For example, cows are considered holy animals in India. Thus, if you’re interested in selling beef in India, you would want to know if and where this type of business is possible.
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All companies in India fall under the Companies Act of 1956, which allows the government to regulate all aspects of a business from its establishment to liquidation.

  • To register your company, you will file your completed application online with the Indian government’s Registrar of Companies, or RoC. The RoC, which is under the jurisdiction of the Ministry of Corporate Affairs, oversees the incorporation of new companies and the administration of businesses under the statutory regulations of the Companies Act.

To register a company in India, you must first have a unique company name approved by the RoC.

  • It’s a good idea to have at least four potential names for your company in case some other entity registered under that name with the RoC.
  • By performing due diligence on the language and culture if you’re not familiar with either, you can avoid choosing names that might offend possible Indian clients or be rejected by Indian authorities.
  • For instance, you may not use a name that implies any connection to government or international organizations.
  • Consider customizing the name to the Indian market to attract more clients.

 Before you file your application to register your company, it’s a good idea to have your company names firmly in place to ensure the registration process isn’t hindered.

  • The Indian Ministry of Corporate Affairs maintains a website where you can check whether other companies registered under a certain name.
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Before you can register your company, you need to apply for a DIN. This unique number, assigned by the Ministry of Corporate Affairs, identifies the current or intended director of your company in India.

  • The forms DIR-3 and DSC, which you can find online at the Ministry of Corporate Affairs’ website, will allow you to apply for the DIN online.  For both documents, you’ll need information including your passport, proof of address, educational qualifications and current occupation. You also need a passport-sized photograph.

DSCs are the digital equivalent of physical or paper certificates and can be presented to prove your identity, to access information or services on the Internet or to sign certain documents digitally.

  • You can register for your DSC online at the Ministry of Corporate Affairs’ website.
  • The Ministry of Corporate Affairs requires that all companies have a DSC because companies will file all applications online.
  • You need the same identification documents to obtain a DSC that you do for the DIN, including passport and proof of address

After you’ve checked company names and obtained your DIN and DSC, you’re ready to prepare the company’s registration application for filing online with the RoC.

  • All of the required forms that you will file online with your completed application you can find online as well at the Ministry of Corporate Affairs website.

This form governs the naming of your company.

  • You should list a minimum of four possible names and a maximum of six in order of preference.

The RoC will approve the company name based on availability and appropriateness.

  • The RoC usually takes two days to approve one of your name choices.
  • You will have to pay a fee of 500 rupees when filing this form.
  • After the RoC approves your company name, you have six months to file online for the registration of your company.

Either you or your legal counsel can draft these documents which contain information on the company’s business objectives and daily operations.

  • The Memorandum of Association contains the company’s business objectives.
  • The Articles of Association contain details on the company’s daily operations, including its management.
  • Each document must be signed by at least two members of the company in their own handwriting. It is also required that one witness be present for the signatures.

Once your draft these documents, you can file them online with the RoC for vetting.

 After the RoC approves your MoA and AoA, print the documents to prepare them to be notarized.

You will submit these documents to the proper stamping authority for the Indian geographic region in which you register your company.

  • Once you have a notarized copy, you can scan these documents and file them online with your other completed application materials.

Paying these prescribed fees at the Ministry of Corporate Affairs’ website is the last step you need to complete before you can file your application for registration with the RoC.

  • The required fee is based on your company’s capital assets.

You will file your registration application online for the Indian state in which you wish to register your business.

  • The RoC maintains offices across India that are responsible for specific states and regions.

You’ll need to have the documents you prepared ready to upload to the Ministry of Corporate Affairs’ website to file the registration of your company with the RoC. Remember, you’ll be registering your company online at the Ministry of Corporate Affairs’s website.

  • The RoC considers a complete application to consist of the following documents, in duplicate: a stamped MoA; a stamped AoA; a copy of any agreements referred to in the articles; a copy of the letter from the RoC on the availability of the company name; the e-Form No. 1 for the incorporation of the company; and receipts of payment for the registration and filing fees.

Now that you’ve gathered all of the required application materials, you’re ready to electronically file with the RoC to register your company.

  • You will file on the website of the Ministry of Corporate Affairs. It has a prompt for you to upload all application materials; from the DNI and DSC to the MoA, AoA, and receipts of payment for registration fees.

The RoC will vet your application and issue the Certificate of Incorporation if the documents are satisfactory.

  • If the RoC does not find the application satisfactory, you will be informed as to what documents are missing or of any other information you need to provide on the application forms.
  • You can re-file your application when you’ve made the necessary corrections

Once the RoC issues your Certificate of Incorporation, you are ready to start conducting business in India.

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