A Real Estate Agency explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Which licences and registrations do you need to legally run a Real Estate Agency in India? Here is the complete list, with why each one matters.
Licenses & registrations required for a Real Estate Agency
- RERA registration for projects/agents
- Entity and GST registration
- Building plan, commencement and completion approvals
- Trade licence and fire/safety NOC for stay businesses
- Local municipal permissions
GST for a Real Estate Agency
Under-construction property attracts GST (1%/5% without ITC); completed property and land are outside GST; commercial rent is 18%.
Ongoing compliance
- File GST returns (GSTR-1 & 3B) where registered
- Deduct and deposit TDS on salaries, rent and contractor payments
- File the income-tax return annually and maintain proper books
- Renew licences before expiry and keep records audit-ready
Common mistakes to avoid
Many new Real Estate Agency owners run into avoidable problems. Watch out for these:
- Choosing the wrong business structure for their liability and funding needs
- Starting operations before the mandatory registrations and licences are in place
- Ignoring GST registration when turnover or the type of supply requires it
- Poor bookkeeping — mixing personal and business money and missing tax deadlines
Related guides
- How to Start a Real Estate Agency
- Real Estate Agency Registration: Licenses, Process & Cost
- Cost to Start a Real Estate Agency
- Is GST Registration Required for a Real Estate Agency?
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