How To Start A Real Estate Business?

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Real estate business is becoming popular in recent years as the prices of lands soar high with the increase in population. It is the most lucrative business, and real estate agents earn very good money from it. It is said that the real estate market is about to grow in the upcoming years.  It is essential that you're aware of certain things when starting a real estate business. There are several procedures to be followed to start a real estate business legally without any legal implications. When you start a business or company, you must complete the company registration procedure at the earliest. The same should be followed for starting a real estate business.

The following would serve as a guide to start a real estate business legally.


Before talking about the steps for registering your business, you must be aware of certain essential aspects of a real estate business.


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You must decide on the type of real estate brokerage your about to take upDecide on the real estate specialization whether you wish to sell commercial residential properties.You must have a clear understanding of the local market. Know about the current demand, competitors of the real estate business in your area. This would help to analyze if your business would be profitable.You must have explicit knowledge about the constitutional laws of real estate business.You must be a licensed real estate broker and licensed real estate agent when you wish to establish a real estate business.You must be ready with a business plan, marketing strategy, and customer groups, etc. of your real estate business. You must work on the capital required for the company.

Apply For Real Estate Agent License

This is the first step in establishing your real estate business is to apply for the real estate agent license. The deputy commissioner of the district issues this license for people who are about to wish to become a real estate agent. You must fill the application form available in the nearest sub register office or municipal corporation. The fee for the property real estate agent varies from one state to another state. The fee for real estate agent license is about Rs.25000 for individuals and Rs. 50000 for companies. The real estate agent license is valid for a particular number of years. It must be renewed once after the validity of the real estate agent license gets expired. Check out this article for getting real estate license.

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The renewal cost is about Rs.5000 and Rs. 10,000 for a real estate company. This license is issued to a person who performs certain services like purchase, sale, leasing, and renting of a property.

Company Registration Of Your Company

It is essential that the real estate business should be registered as a private limited company or as a limited liability partnership company. This would help to improve the trust in your company among customers. Your professionalism is exposed when the company registration of your company is completed. To compete in this business, it is essential to revolutionize and grow your business to international standards.

GST Registration For Your Company

The services offered by real estate business are taxable, and thus, you have to complete the GST
GST Registration For Your Company
registration process. Your business services are payable under the GST law. Therefore complete GST registration to avoid a penalty in the taxation scheme of their business.

Service Tax Registration

A real estate company is taxable for the services that it offers. Thus as per the service tax act, a real estate company should be registered for the service tax. The amount charged by the real estate agent is taxable at 14% based on the service tax act. Thus all real estate agents who own a company whose annual taxable income is more than 9 lakhs then service tax registration is mandatory. Therefore the company must collect the service tax from its client when the billing of their services exceeds 9 lakhs.

The above are some of the registrations that one has to complete when they wish to start a real estate business of their own.

Comments

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