Legal Framework for Operation

• An LLP can be registered to operate as a real estate services firm or development entity
  
• It must be incorporated under the LLP Act, 2008, with its business object clearly defined in the LLP Agreement
  
• The name and activities must comply with RERA (Real Estate Regulatory Authority) and local municipal regulations
  
• LLPs involved in development must obtain real estate project approvals and licenses
  
• Compliance with land use, zoning, and construction regulations is mandatory
  

Suitable Activities in Real Estate

• LLPs can be engaged in property development, land aggregation, leasing, renting, and brokerage
  
• They may provide real estate consultancy, facility management, or interior fit-out services
  
• LLPs can act as property investment vehicles for joint ownership or co-development
  
• Leasing of commercial assets and real estate portfolio management are permitted
  
• It can also function as a project-specific entity (SPV) for a single development project
  

Structural and Financial Flexibility

• LLP allows flexible profit-sharing and management control among partners
  
• Real estate partners can contribute land, capital, or development services
  
• The LLP Agreement can clearly define roles for landowners, developers, and investors
  
• It allows for easy addition or exit of partners based on project needs
  
• No restriction on the number of partners provides scalability for large-scale ventures
  

Compliance and Registration Requirements

• LLPs must obtain PAN, GST registration, and local licenses before starting operations
  
• If acting as a developer, registration with RERA is mandatory for applicable projects
  
• Land title documentation, construction approvals, and project disclosures must be properly maintained
  
• Regular filings such as Form 8, Form 11, and Income Tax Returns must be complied with
  
• LLPs must ensure all agreements, deeds, and contracts are executed legally in the firm’s name
  

Business and Investment Benefits

• LLP structure ensures limited liability protection for real estate developers and investors
  
• It is suitable for joint ventures between landowners and construction firms
  
• It offers lower compliance costs and flexibility in structuring development rights and profit sharing
  
• Foreign investors can participate in LLPs, subject tothe  FDI policy and sectoral guidelines
  
• LLPs are often preferred in real estate for private funding, pooling resources, and executing project-based ventures