How to Set Up a Real Estate Agency in India: The Complete 2026 Step-by-Step Guide
Setting up a real estate agency in India takes seven steps. Choose your legal structure. Register under RERA. Get GST registration. Build your team. Sign builder partnerships. Go live on property portals. Install a CRM. Most new agencies complete the first three steps and then stall. They have no system for managing leads, no process for channel partner relationships, and no daily visibility into what their agents are doing. This guide covers every step in order so your agency starts generating revenue within 90 days instead of drowning in setup delays.
Step 1: What Legal Structure Should You Choose for Your Real Estate Agency?
Your legal structure determines your liability, tax treatment, and the credibility you carry with builders and corporate clients. Three options are practical for a real estate agency in India.
Sole Proprietorship is the simplest and cheapest. No separate registration is required beyond a trade licence and RERA. Your income is taxed at your personal income tax slab. You are personally liable for all business debts. This works for individual brokers and early-stage operations.
Partnership Firm suits two or more co-founders who want a formal profit-sharing arrangement. A Partnership Deed registered with the Registrar of Firms costs ₹3,000 to ₹8,000. Partners are personally liable. Income is taxed at each partner’s individual slab.
Private Limited Company is the professional choice for agencies that want to scale, attract investment, or win corporate leasing mandates. Incorporation via the MCA portal costs ₹10,000 to ₹20,000 inclusive of professional fees. The company pays corporate tax. Directors have limited personal liability. Large builders and HNI clients prefer working with registered companies.
| Criteria | Sole Proprietorship | Partnership Firm | Private Limited Company |
|---|---|---|---|
| Setup Cost | ₹500 to ₹2,000 | ₹3,000 to ₹8,000 | ₹10,000 to ₹20,000 |
| Setup Time | 1 to 3 days | 5 to 10 days | 15 to 25 days |
| Personal Liability | Full | Full (joint and several) | Limited |
| Tax Rate | Individual slab | Individual slab per partner | 22% to 25% + surcharge |
| Credibility with Builders | Moderate | Moderate | High |
| Can Raise Investment | No | No | Yes |
| Best For | Solo brokers | 2 to 4 co-founders | Growth-oriented agencies |
Recommendation: If you are starting alone or with one partner and expect to close 5 to 15 deals per month, a partnership firm is sufficient. If you plan to hire more than five agents or target corporate clients within two years, go directly to a Private Limited Company.
Step 2: How Do You Register Under RERA in India?
RERA registration is mandatory for brokers transacting in RERA-registered projects. Without it, you cannot legally earn brokerage on new residential and commercial projects in most states.
RERA portal quick-links: MahaRERA · Karnataka RERA · TNRERA · Telangana RERA · Delhi RERA · UP RERA · Gujarat RERA · Haryana RERA The registration process varies by state, but the core requirements are consistent.
What Documents Do You Need for RERA Broker Registration?
- Identity proof: Aadhaar and PAN card
- Address proof: utility bill or lease agreement for your office
- Business registration proof: trade licence, Partnership Deed, or Certificate of Incorporation
- Passport-size photograph
- Bank account details
What Are the RERA Registration Fees?
Fees range from ₹10,000 to ₹25,000 depending on the state.
- Maharashtra (MahaRERA): ₹10,000 for individuals, ₹25,000 for firms
- Karnataka: ₹25,000 for companies and firms
- Telangana (TS-RERA): ₹15,000 for companies
- Uttar Pradesh: ₹25,000 for firms
How Long Does RERA Broker Registration Take?
Most states now process applications entirely online. Approval takes 7 to 30 working days depending on the state. Maharashtra typically processes in 15 to 20 days.
Important: Operating as a broker in a RERA-registered project without a valid RERA number carries a penalty of ₹10,000 per day. Source: Real Estate (Regulation and Development) Act, 2016, Section 9(7).
RERA registration is valid for five years. Mark the expiry date and start renewal at least 60 days early.
For multi-state agencies: If you operate in two or more states, you need separate RERA registration in each state. Budget the fees and the time accordingly.
Step 3: Do You Need GST Registration for a Real Estate Agency?
Yes, if your annual brokerage income exceeds ₹20 lakh. GST registration is mandatory for real estate agents crossing this threshold. The threshold is ₹10 lakh for special category states.
GST on real estate agency services is charged at 18% on brokerage income.
The registration process:
- Apply on the GST portal at gst.gov.in.
- Submit PAN, Aadhaar, bank account details, and business registration proof.
- Receive your 15-digit GSTIN within 3 to 7 working days.
On invoicing: Once registered, issue GST invoices for all brokerage amounts. Maintain monthly GST returns (GSTR-1 and GSTR-3B). Use a simple accounting tool like Zoho Books or hire a CA for ₹1,500 to ₹3,000 per month.
Before you cross the threshold: If your first-year income will be below ₹20 lakh, you can operate without GST registration initially. But register from day one if you plan to grow quickly. Retroactive registration is administratively messy.
Step 4: How Should You Structure Your Real Estate Agency Team?
Agency structure depends on your focus and deal volume. Here is the core team for a residential brokerage targeting 10 to 15 deals per month:
Core Roles in the First 90 Days
Sales Agents: 3 to 5 people. On-ground agents who take site visits and negotiate deals. Hire people with at least two years of real estate or direct sales experience. Pay a small fixed base plus commission of 30 to 40% of brokerage earned.
Tele-Calling Executive: 1 to 2 people. Handles incoming portal enquiries, qualifies leads, and books site visits. This role protects your agents from wasting time on cold or unqualified leads.
Admin and Documentation Executive: 1 person. Handles agreements, documentation, and post-sale paperwork follow-up.
Compensation Benchmarks for Tier 1 Cities in 2026
| Role | Fixed Monthly Salary | Variable Pay |
|---|---|---|
| Sales Agent (Junior) | ₹15,000 to ₹20,000 | 30 to 35% of deal brokerage |
| Sales Agent (Senior) | ₹25,000 to ₹35,000 | 35 to 40% of deal brokerage |
| Tele-Caller | ₹18,000 to ₹25,000 | ₹500 to ₹1,000 per site visit booked |
| Admin Executive | ₹18,000 to ₹25,000 | Performance bonus ₹5,000 to ₹10,000/month |
Team structure mistakes to avoid:
Do not hire five agents with no admin support. Lead follow-up collapses within 30 days. Do not hire admin before you have agents generating transactions. Sequence matters more than headcount.
Step 5: How Do You Become a Builder-Authorised Channel Partner?
Builder partnerships are the revenue foundation of most residential agencies. Builders list you as an authorised channel partner and pay brokerage of 1.5% to 3% of the sale value on every deal you close.
How to approach builders:
Target 5 to 8 active builders in your city first. Do not try to partner with 50 builders at once. Focus on builders with ongoing launches in the ₹50 lakh to ₹2 crore range.
Attend builder CP registration drives. Most builders hold channel partner registration events quarterly. Find these through local broker associations or direct outreach to the builder’s sales team.
Submit your RERA number. Builders now require a valid RERA registration for all channel partners. Without it, they will not list you.
Earn priority tier status. Builders tier their CPs. Higher-tier CPs get early access to launches, preferential pricing, and priority booking slots. You earn tier upgrades by delivering consistent deal volume.
Understand the brokerage payment timeline. Builder brokerage is typically paid in tranches, tied to buyer payment collection. Confirm the exact terms in writing before closing any deal. This prevents disputes later.
What to track in your CRM: For every builder partnership, record the project name, project RERA number, brokerage rate, payment tranche schedule, and your dedicated sales contact. This prevents missed payments and easy follow-up.
Step 6: How Do You Set Up Your Property Portal Presence?
India’s three major property portals are 99acres, MagicBricks, and Housing.com. They generate the majority of digital residential enquiries in most Tier 1 and Tier 2 cities.
How Do You Post Listings on Indian Property Portals?
- Create agency accounts on all three portals. Basic listings are free. Paid premium placements start at ₹500 to ₹2,000 per listing per month.
- List every project you are authorised to sell. Include RERA numbers, floor plans, pricing, and possession dates.
- Add high-quality photos. Listings with photos get five times more enquiries than text-only listings. Source: 99acres Seller Data Report 2025.
- Update listings weekly. Stale listings with outdated pricing fall in search rankings.
How Do Portal Enquiries Connect to Your CRM?
Portal enquiries arrive as email and SMS alerts. Without integration, they land in a shared inbox and get missed or assigned randomly. Realatic’s CRM pulls enquiries directly from 99acres, MagicBricks, and Housing.com. Every lead is logged automatically. No manual entry. No missed leads.
When Should You Invest in Paid Portal Listings?
Test one portal at ₹5,000 to ₹15,000 per month for 60 days before committing to annual packages. Measure cost per lead, cost per site visit, and cost per deal. Do not pay for annual packages until you have confirmed that the portal’s leads convert in your market.
Step 7: What CRM and Technology Stack Does a New Agency Need?
A new agency needs exactly three tools to run efficiently:
- A CRM to track every lead from enquiry to possession.
- WhatsApp Business (or a CRM with a built-in WhatsApp inbox).
- A basic accounting tool (Zoho Books or Tally) for GST invoices and commission tracking.
Do not buy project management software, complex ERP systems, or social media scheduling platforms before your sales process is working.
Why Install a CRM on Day One?
New agencies make the same mistake every time. They track leads on WhatsApp, deals in Excel, and site visits in a notebook. Within 60 days, they are losing 30 to 40% of their portal leads to slow follow-up. A CRM prevents this from the start.
Realatic is built for Indian real estate agencies. It includes:
- Portal lead integration: 99acres, MagicBricks, Housing.com, Facebook Leads, Google Ads
- WhatsApp inbox included in Pro and Business, not as an add-on
- AI lead scoring that auto-qualifies leads within 60 seconds
- Site visit tracking and scheduling
- Builder inventory management with unit-level tracking
- RERA and TDS compliance tools built in
- Buyer portal for document sharing and payment tracking
The free plan covers 100 leads per month, and one project. Setup takes one to two days. No credit card required. Start free at Realatic.com.
What Should You Do in Your First 90 Days?
The first 90 days determine whether your agency builds momentum or stalls. Most new agencies spend too long on setup and not enough time in the market.
Days 1 to 30: Foundation
- Choose your legal structure and complete registration
- Apply for RERA registration in your state
- Apply for GST registration
- Open a dedicated business bank account
- Sign with 3 to 5 builders as an authorised channel partner
- Create listings on 99acres, MagicBricks, and Housing.com
- Set up your CRM (Realatic free plan)
- Set up your WhatsApp Business account
- Hire your first tele-caller
Days 31 to 60: First Deals
- Attend builder site visits to learn your inventory
- Start responding to portal enquiries within 15 minutes using the CRM
- Close your first five deals
- Collect testimonials from first five buyers
- Hire two sales agents
- Set up automated lead assignment in the CRM
Days 61 to 90: Systematise
- Set daily lead follow-up tasks in the CRM for every open lead
- Create a weekly reporting routine: leads received, site visits done, deals closed
- Review which portals are generating the best cost-per-deal
- Review builder partnerships: which ones pay brokerage on schedule?
- Set targets for months four to six
Complete Agency Setup Checklist
Legal and Compliance
- Legal structure chosen and registration completed
- RERA application submitted
- RERA registration received
- GST registration completed
- Business bank account opened
- GST invoicing set up
Builder Partnerships
- 5 to 8 target builders identified
- CP registration drives attended
- RERA number submitted to each builder
- CP onboarding completed with brokerage terms confirmed in writing
- Builder project brochures and RERA certificates collected and stored in CRM
Digital Presence
- Agency accounts created on 99acres, MagicBricks, and Housing.com
- Listings posted for every builder project you represent
- Google My Business profile created
- WhatsApp Business profile set up with name, logo, and working hours
Technology
- Realatic CRM installed and configured
- Portal integrations connected
- Lead assignment rules set up
- WhatsApp inbox activated
Team
- First tele-caller hired
- First two to three sales agents hired
- Commission structure documented and shared in writing
- Daily team briefing routine established
Frequently Asked Questions
How much does it cost to start a real estate agency in India?
Starting a real estate agency in India costs between ₹50,000 and ₹2,50,000 in the first year. Major costs include RERA registration (₹10,000 to ₹25,000), GST registration professional fees (₹2,000 to ₹5,000), portal listing packages (₹5,000 to ₹20,000 per month), and CRM software. Realatic’s free plan eliminates CRM cost during the early stage. Office rental is the largest variable cost and depends on location.
Do you need a licence to work as a real estate broker in India?
Yes. RERA registration is mandatory for brokers who transact in RERA-registered projects. This applies to both residential and commercial projects. Operating in a RERA-registered project without valid registration carries a penalty of ₹10,000 per day under Section 9(7) of the RERA Act.
How long does RERA broker registration take in India?
RERA registration takes 7 to 30 working days from application, depending on the state. Maharashtra processes applications in 15 to 20 working days. Karnataka and Telangana typically take 20 to 30 days. All states now accept online applications through their state RERA portals.
How many builder projects should a new real estate agency start with?
Start with three to five builder projects. This gives agents enough inventory to present options to buyers without spreading focus too thin. Add more projects as your team grows and brokerage payouts become consistent.
What is the typical brokerage rate for real estate agencies in India?
For new residential sales, builder brokerage rates range from 1.5% to 3% of the sale value. On a ₹60 lakh deal, that is ₹90,000 to ₹1,80,000 per transaction. Resale brokerage is typically 1% to 2% of the sale value, split between the buyer’s agent and the seller’s agent.
When should a new agency invest in paid portal listings?
Invest in paid portal listings after you have closed your first three to five deals using organic listings. This confirms that your lead handling and conversion process works. Start at ₹5,000 to ₹10,000 per month on one portal. Measure cost per site visit and cost per deal before committing to annual packages.
Does a real estate agency need a separate TDS compliance process?
Yes. Under Section 194IA of the Income Tax Act, buyers must deduct TDS at 1% when purchasing property above ₹50 lakh. Brokers who facilitate these transactions must guide buyers correctly and retain documentation. Realatic’s CRM includes TDS compliance reminders and documentation support built in.
Build Your Agency on a Solid Foundation
Setting up a real estate agency is straightforward when you work in sequence. Legal first. RERA second. Builder partnerships third. Portal presence fourth. CRM fifth. Team sixth.
Agencies that skip the CRM step spend their first year losing leads they cannot see. Install Realatic before your first portal listing goes live. Capture every enquiry. Follow up automatically. Measure what is working.
The Realatic free plan includes three users, 100 leads per month, and one project. No credit card required. Get started at Realatic.com.