How to start a real estate agent business in India: RERA registration and licences

Choosing a structure

Individual brokers can register with RERA in their own name. Brokerage firms, LLPs and companies register as entities, and many state rules require details of partners or directors. A company or LLP suits agencies with several agents, offices or developer mandates.

Developers prefer working with RERA-registered entities, and many will only empanel agents who show a valid certificate. Your structure should be the one that signs channel partner agreements.

Registrations for a real estate agent

RERA registration is the core requirement, and it applies state by state. Other registrations are standard business and tax ones. Check your state RERA website for the current document list and fee.

What RERA requires of agents

Section 9 bars agents from facilitating the sale or purchase of any plot, apartment or building in a project registered under RERA without their own registration. Applications go to the state authority with identity, address and entity documents and the prescribed fee. Certificates are generally valid for five years from the date of registration and must be renewed before expiry; Haryana RERA certificates, for example, state a five-year validity.

Under section 10, registered agents must not facilitate deals in unregistered projects, must maintain books of account and records as prescribed, must not engage in unfair trade practices, and must help buyers and sellers obtain documents they are entitled to. Quote your registration number in every sale you facilitate. Some states, such as Maharashtra, also require agents to complete training and certification.

Tax rules for brokerage

Brokerage and commission are taxable services at 18% GST. If you work across states, the place of supply for services related to immovable property is generally the location of the property, which affects which registration and tax type apply.

Developers and clients paying commission or brokerage deduct TDS at the rate the law prescribes. Claim these credits in your income-tax return. Brokerage income is business income; commission earners are excluded from the business presumptive scheme under section 58.

Ongoing compliance

Renew RERA registration before expiry, update the authority about changes in address or partners, and keep records of every transaction facilitated. Some authorities require periodic disclosures. Market only projects registered with RERA, and use project registration numbers in your advertising as states require.

File GST returns, reconcile TDS credits and file income-tax returns. If you take advances or tokens from buyers on behalf of developers, document them clearly and avoid cash handling beyond legal limits.

Resale, rental and commercial deals

RERA registration under section 9 is linked to projects registered under the Act, mainly new developments. Resale of old properties and rental brokerage are not covered by the same requirement in every state, but many agents register anyway, since developers and buyers expect it and it supports credibility.

Some cities and states have separate rules or proposals for rental brokers and estate agents, and housing societies may set their own entry rules. Commercial leasing brokerage is taxable at 18% like residential brokerage, and large corporate clients will deduct TDS on your fees.

Pitfalls for property agents

State authorities have imposed penalties on unregistered agents and on agents promoting unregistered projects, so check the project's RERA status before taking a mandate. Keep a copy of each project's RERA certificate in your deal file.

• Facilitating deals while RERA registration has lapsed.
• Advertising unregistered projects that should be registered.
• Operating in a second state without registering there.
• Not charging GST on brokerage once above the threshold.

Step by step

1. 1Choose how to register

   As an individual or through a firm, LLP or company.

2. 2Collect documents

   Identity, address, PAN, entity papers and photographs.

3. 3Complete training if required

   Some states require agent training or certification first.

4. 4Apply to the state RERA

   File the online application with the prescribed fee.

5. 5Register for GST

   Register once brokerage income approaches ₹20 lakh.

6. 6Empanel with developers

   Share your RERA certificate and sign channel partner agreements.

7. 7Track renewal

   Renew before the five-year validity ends.