A real estate business in India is regulated at three levels: land and building approvals from the local planning authority, project and agent registration under the Real Estate (Regulation and Development) Act, 2016 (RERA), and the usual fire, environment, labour and tax compliances. The licences required for a real estate business depend on whether you are a promoter developing a project or an agent selling plots, apartments or buildings. This roadmap sets out the order of approvals, the central and state split and the compliance that continues after launch.
Licences and registrations to plan for
- Planning stageEntity formation
Developers commonly operate through a company or LLP, so that each project can be held in a separate entity. Choose the entity before you buy land.
- Before constructionBuilding plan approval
The sanctioned plan from the development authority, municipal body or town planning department is the foundation for every later step, including RERA registration.
- Before constructionPollution consent for construction
State boards require Consent to Establish for many construction projects above their size thresholds, with conditions on dust, sewage treatment and water use.
- Before borewell use or dewateringGroundwater NOC
Projects that extract groundwater, including for construction dewatering, need permission where the central or state authority requires it.
- Before and after constructionFire NOC
Residential and commercial buildings above the state height or area thresholds need fire clearance, both at the planning stage and before occupation.
- Before launchRERA project registration
A project above the Act's size thresholds must be registered with the state authority before you advertise, market, book or sell any unit.
- Before starting workBOCW establishment registration
Builders who employ construction workers register with the labour department and pay the construction cess where it applies, as set out under the labour codes.
- Before contractors deploy workersContract labour licence
If the construction is carried out through contractors, the contractor and the principal employer have licensing and registration duties under the labour codes.
- Before first bookingGST registration
Sale of under-construction property and many works contracts are taxable. The rate regime depends on the type of project, so confirm it with your tax adviser.
- On hiringEPF and ESIC
Developers with a site office, sales and project staff register once coverage thresholds are met under the Code on Social Security.
- Before facilitating salesRERA agent registration
A real estate agent who facilitates sale of units in a registered project must register with the state authority and renew it, whether as an individual or a firm.
- Before launchTrademark registration
Project and developer names are brand assets, so file the mark before launch and check that the RERA project name does not conflict.
Developer or agent: two different compliance paths
A promoter, meaning a developer who constructs or sells units, needs project-level registrations and approvals. An agent who only introduces buyers needs agent registration with the state RERA, which is valid for five years and then renewed according to the state rules. We have seen a Haryana RERA Gurugram certificate stating five years and recording the registered address, and conditions such as record keeping and periodic uploads attached to it.
The two paths overlap on tax and labour laws, and agents also face limits. An agent should not facilitate the sale of a project that is not registered, so check the project registration number on the state portal before you take a booking.
The developer's roadmap: order of approvals
The order below applies to a typical residential or commercial project. Plotted developments and affordable housing may have extra state steps.
- Confirm title and land use. Check the master plan or zonal plan, any conversion requirement, encumbrances and litigation.
- Form the entity and register for PAN, GST and bank accounts. RERA requires a separate account for each project to hold buyers' money.
- Obtain the layout and building plan sanction from the development authority, municipal body or town planning department, including NOCs the authority asks for.
- Apply for environmental clearance where the project size triggers it, and pollution Consent to Establish. Large projects fall under the EIA notification and are assessed by the state environment impact assessment authority, so check the size threshold for your project.
- Obtain fire clearance at the planning stage for buildings above the state threshold, and groundwater permission if you will draw groundwater.
- Register the project with the state RERA before you advertise or book units. The Act directs the authority to decide within 30 days of a complete application, and queries can add time.
- Register as a BOCW establishment and arrange contract labour licences before workers come on site.
- Complete construction, obtain the occupation or completion certificate, final fire clearance and Consent to Operate for the occupied building, then hand over to the association.
RERA obligations that continue after registration
RERA is not a one-time filing. A registered promoter must keep a share of money received from buyers in the designated project account and withdraw against construction progress as certified by professionals, which our RERA registration page describes under Section 4(2)(l)(D). Quarterly progress updates, the correct project details in advertisements and timely handover are continuing duties. Section 6 allows extension of registration only in the limited cases listed.
Penalties for unregistered projects and false information run into percentages of project cost and potential imprisonment under the Act. We have not verified the exact quantum, so check Sections 59 to 61 before relying on a figure.
Environmental clearance and labour approvals
Under the EIA Notification, 2006, construction and area development projects above the stated built-up area thresholds need prior environmental clearance, usually from the State Environment Impact Assessment Authority for mid-size projects. State boards separately issue Consent to Establish and Consent to Operate. Because thresholds and exemptions have been amended, confirm the current position with the state authority.
On labour, the four Labour Codes came into force on 21 November 2025, and the Occupational Safety, Health and Working Conditions Code, 2020 now covers building and construction workers and contractors. Our BOCW and contract labour pages explain what changed and which details we could not verify, including construction cess figures reported from secondary sources.
Delhi, Uttar Pradesh and Haryana: where applications go
Delhi: Building approvals go to the MCD, NDMC or DDA depending on the plot, through the online building plan system. Projects register with Delhi RERA, and fire clearance comes from the Delhi Fire Service.
Uttar Pradesh: Approvals come from the development authority, such as Noida, Greater Noida, YEIDA or LDA, or the nagar nigam. Projects register with UP-RERA, and agents register on the same authority's portal.
Haryana: Planning approvals come from HSVP, DTCP or the municipal body. Haryana has two RERA offices, in Gurugram and Panchkula, and the office depends on the project location.
RERA fees are set by each state's rules and linked to project area, so check the current schedule on the authority's portal.
Recurring compliance for a real estate business
- RERA: quarterly updates, project account operations, certificates from professionals and handover obligations for each registered project.
- Agent: renewal before the five-year certificate ends and the records and uploads required by the state RERA.
- GST: periodic returns, and reconciliation of credit across projects and works contracts.
- TDS and income tax: deduction on payments to contractors and professionals, advance tax and filings for the entity.
- Labour: BOCW cess, contractor returns, PF and ESIC contributions and site safety records.
- Fire and environment: renewal of clearances as state rules require and conditions on dust, sewage treatment and water use.
Pitfalls that delay real estate projects
- Advertising or taking bookings before RERA registration. The Act prohibits it and the authority can act on the advertisement itself.
- Mismatch between the sanctioned plan and what RERA records. Keep the plan, project description and layouts consistent.
- Late environmental or fire clearance because the size threshold was misread.
- Agents promoting unregistered projects or operating on an expired agent certificate.
- Relying on one state's checklist in another. RERA rules and fees differ across states.
Frequently asked questions
Which registrations does a builder need in India?
A builder needs building plan sanction, RERA registration of the project, environmental and pollution clearances where applicable, fire NOC, labour registrations and GST. Exact requirements depend on project size, use and state, so confirm with the local authority and state RERA.
Is RERA registration compulsory for every project?
Not every project. The Act applies above size limits such as the land area or number of apartments in Section 3, with specific exemptions. The test can differ by state, so check your state's RERA rules before assuming an exemption.
Do real estate agents need RERA registration?
Yes. An agent who facilitates the sale of plots, apartments or buildings in a registered project needs registration with the state RERA. It is valid for five years and must be renewed as per state rules.
Can I advertise a project before RERA registration?
No. The Act bars advertising, marketing, booking or selling in a project that requires registration until it is registered. Pre-launch teasers can still count as advertising, so wait for the registration number.
Is environmental clearance needed for every building?
No. Under the EIA Notification, 2006 the need depends on built-up area thresholds, and smaller projects may need only state pollution consent. Confirm the current thresholds with the State Environment Impact Assessment Authority.
Is fire NOC required for apartments?
Fire clearance applies above state-specific height and area thresholds. Low-rise residential buildings may be exempt, but high-rise and larger commercial buildings need it. Check your state fire law.
Do builders need BOCW registration?
Builders who employ construction workers register with the labour department as building and construction establishments, and may pay cess. The labour codes changed the framework from 21 November 2025, so verify the current state rules.
What GST applies to under-construction property?
Under-construction property is taxable, with rates and credit rules that depend on the project type and the notification in force. Take a tax adviser's view for each project, as the rules have changed over time.
How long does RERA registration take?
The Act directs the authority to decide within 30 days of a complete application. Practical time depends on queries and document completeness, so prepare the sanctioned plan and certificates before you apply.
Official sources
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. Last reviewed 16 October 2026. Always confirm current rules and fees on the official portal before acting.