Balance Sheet Limit for Real Estate
The prescribed balance sheet limit for real estate agents in India stands at 20 crore rupees. This means that any real estate agent whose balance sheet exceeds 20 crores is required to register with the Ministry of Corporate Affairs (MCA) as a company. This requirement was introduce in 2018 under the Companies Act, 2013.
The purpose of this requirement is to improve transparency and accountability in the real estate sector. By registering with the MCA, real estate agents are require to disclose their financial information, which can help to protect consumers from fraud and other unscrupulous practices.
To visit: https://www.incometax.gov.in
In addition to the of balance sheet limit for real estate, there are other requirements for real estate agents to register with the MCA. These requirements include:
- Having a minimum paid-up capital of 25 lakhs
- Having at least two directors, one of whom must be a resident of India
- Maintaining a trust account for client funds
- Complying with the other provisions of the Companies Act, 2013
If you are a real estate agent and your balance sheet exceeds 20 crores, you are require to register with the MCA within 30 days of the end of the financial year. You can find more information about the registration requirements on the MCA website.
For further details access our website: https://vibrantfinserv.com
