The real estate industry is India’s second-largest and one of the most lucrative, after agriculture. There are three main types of real estate: commercial, residential, and land. All three of these types are doing well in India because of the growing middle class and foreign investment. Starting a real estate business in India is very appealing because the Indian real estate market is expected to reach US$ 180 billion by 2020. Real Estate Business – Realtors
Building material suppliers, builders, building labour suppliers, architects, engineers, construction equipment providers, financiers and realtors or brokers all come together to create the vibrant real estate business in India. The realtors or brokers who serve as the point of contact for customers throughout the course of a transaction and offer guidance, information, and assistance in negotiating deals are essential members of this group. The primary topic of this article is the process of starting a real estate brokerage business. Business Registration
Most real estate agents operate as unregistered businesses – typically a proprietorship or unregistered partnership. However, in order to compete with large online real estate brokerage platforms and win over customer confidence, the real estate brokerage industry is currently being reformed, formalized, and elevated to international standards. As a result, it is essential for those starting a real estate brokerage business to incorporate as a Limited Liability Partnership (LLP) or Private Limited Company in order to increase professionalism and boost customer confidence. Registration for Service Taxes The services provided by a Real Estate Agent or Real Estate Consultant are taxable under the Service Tax Act. According to the Service Tax Act, a “real estate agent” is a person who provides services related to the sale, purchase, leasing, or renting of real estate. This definition also includes a real estate consultant. A person who provides advice, consultancy, or technical assistants in any way, either directly or indirectly, regarding the evaluation, conception, design, development, construction, implementation, supervision, maintenance, marketing, acquisition, or management of real estate is referred to as a “real estate consultant.” Service tax is chargeable on any taxable service rendered by the real estate agent or real estate consultant for a consideration in money. The service tax act imposes a 14% tax on the service provider’s gross charges. As a result, real estate agents and consultants whose annual taxable services billing exceeds Rs. 9 lakhs must register for service tax and collect service tax from customers whose annual taxable services billing exceeds Rs. 10 lakhs. License for Real Estate Agent The real estate industry is becoming more structured, and Haryana State was one of the first states in the nation to issue licenses for real estate agents. In Haryana, individual real estate agents have to pay a license fee of Rs.25,000 while a company would have to pay Rs. 50,000 for the licence. A real estate agent license issued by the state of Haryana would be valid for five years and could be renewed for a fee of Rs. 5,000 for individuals and Rs. 10,000 for businesses. Real estate agents can join the National Association of Realtors – India (NAR-India) in addition to receiving a mandatory license from the State Government. NAR-INDIA is an umbrella organization on a national level that represents the interests of thousands of realtors and brokers across the country. The goal of NAR-India is to bring the real estate brokerage industry’s practices up to a global standard of ethics, openness, accountability, the rule of law, and good governance. For real estate professionals, NAR-India membership provides the following advantages: Beneficiary of a credible image of the realtor profession in India.
National and international level business networking opportunities.
Consumer recognition in local as well as global markets.
Through a global niche listing, local businesses gain international visibility. Platform for lobbying with governments for benefit of the profession.
Ongoing opportunity for skill development through various education programmers, conferences, and conventions. Access to accepted standard procedures, practices and products.
Platform for grievance redressal and conflict resolution.
Subject to conditions, access to the internationally recognized REALTOR logo.
