Starting a Real Estate Company in Kerala: K-RERA Registration and Approvals

A real estate developer in Kerala must register most projects with the Kerala Real Estate Regulatory Authority (K-RERA) under the Real Estate (Regulation and Development) Act, 2016, before advertising or selling a single unit. The business structure, land documentation and project approvals also need careful planning, since buyers and banks examine all three.

This article sets out the structure, registrations and compliance that usually apply to a real estate developer in Kerala. Building contractors are covered separately in registering a construction company in Kerala.

Choosing the structure

• Private limited company: preferred for developers who will borrow from banks or bring in investors; many developers use a separate company for each project.
• LLP: common for joint developments between landowners and developers.
• Partnership firm: still used for smaller projects, though partners have unlimited liability.

Joint development agreements with landowners should be drafted carefully, covering the share of built-up area or revenue, approvals, timelines and exit.

K-RERA registration

• Projects with land area above 500 square metres or more than eight apartments must be registered before they are advertised, marketed or sold.
• The application includes details of the promoter, land title, approved plans, project schedule and the bank account for the project.
• A prescribed share of amounts collected from buyers must be kept in a separate account and used only for land and construction cost of that project.
• Registered projects must upload periodic progress updates on the K-RERA portal.
• Real estate agents who sell units in registered projects must themselves register with K-RERA.

Other approvals and registrations

• Building permit from the local body under the Kerala building rules, and approvals for land use where required
• Environmental clearance for projects above the prescribed size
• Fire safety approval for high-rise buildings
• GST registration; construction services and sale of under-construction units have specific GST treatment. See GST registration.
• Stamp duty and registration on sale deeds and agreements under the Kerala Stamp Act

Frequently asked questions

Can a project be advertised before RERA registration?

No. A project that requires registration cannot be advertised, marketed or booked until it is registered.

Does a plotted development need registration?

Yes, a plotted development is a real estate project under the Act if it meets the size threshold.

Can NRIs invest in a real estate company?

Foreign investment in real estate business is restricted, though construction development is permitted subject to conditions. See NRIs starting a business in Kerala.

ചുരുക്കം (Summary in Malayalam)

കേരളത്തിൽ 500 ചതുരശ്ര മീറ്ററിലധികം ഭൂമിയോ എട്ടിലധികം അപ്പാർട്ട്മെന്റുകളോ ഉള്ള പ്രോജക്റ്റുകൾ പരസ്യം ചെയ്യുന്നതിനും വിൽക്കുന്നതിനും മുമ്പ് K-RERA-യിൽ രജിസ്റ്റർ ചെയ്യണം. വാങ്ങുന്നവരിൽ നിന്ന് ലഭിക്കുന്ന തുകയുടെ നിശ്ചിത ഭാഗം പ്രത്യേക അക്കൗണ്ടിൽ സൂക്ഷിക്കണം. റിയൽ എസ്റ്റേറ്റ് ഏജന്റുമാരും രജിസ്റ്റർ ചെയ്യണം. ബിൽഡിംഗ് പെർമിറ്റ്, പരിസ്ഥിതി അനുമതി, ഫയർ NOC, GST എന്നിവയും ആവശ്യമാണ്. ഓരോ പ്രോജക്റ്റിനും പ്രത്യേക കമ്പനി രൂപീകരിക്കുന്നത് സാധാരണമാണ്.

This article gives a general overview of setting up a real estate business in Kerala. The RERA rules, building rules and tax treatment are revised from time to time; for accurate and current requirements, refer to K-RERA and the authorities concerned. The article is not advice on any particular case.