Name: REIT Registration in India - corpbiz
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REIT Registration

Are you planning to manage, operate, or invest in income-generating commercial real estate? Get your REIT Registration in India and explore opportunities to pool investments, generate rental income, and distribute returns to investors. A SEBI-registered REIT enables you to build investor trust, expand your real estate portfolio, and establish a professionally managed investment structure.

What’s included?

Consultation & Feasibility Analysis
Regulatory Documentation
SEBI Approval Process

Financial Structuring
Tax Advisory
Fundraising & Investor Relations

Trusted by Real Estate Developers/Owners and Fund Managers across 100+ Cities

An Overview of REIT Registration

Are you running a real estate business and planning to manage a portfolio of high-value properties and mortgages? If yes, obtaining REIT Registration is essential to operate such a business model and generate income legally. Typically, a REIT leases properties, collects rent, and distributes the earnings among shareholders in the form of income and dividends.

REITs (Real Estate Investment Trusts) allow investors to own high-value real estate without buying the property themselves, enabling them to earn regular dividend income and enhance long-term capital growth.

The Real Estate Investment Trust Registration is regulated under the SEBI (Real Estate Investment Trusts) Regulations, 2014. By securing a REIT registration online, businesses gain access to wider investment opportunities in the real estate sector without direct property acquisition. This structure ensures greater transparency and offers enhanced liquidity options to investors.

A company with REIT registration manages portfolios of large real estate assets and mortgages, leases properties, collects rent, and distributes returns to shareholders, making REITs an attractive option for investors seeking stable returns and steady income.

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What are REITs?

A REIT, which stands for a Real Estate Investment Trust, is a company that owns and operates real estate to generate income. It is a business corporation that manages the portfolios of high-value real estate properties and mortgages. Typically, such companies lease properties and collect rent accordingly. The collected rent is later distributed among the shareholders as income and dividends.

An interested company must obtain a REIT registration to operate such businesses. Typically, REITs offer investors opportunities to own high-priced real estate and enable them to earn dividend income in order to boost their capital at the same time. Here, both big and small investors can park their funds in this investment system and reap benefits accordingly. However, a small investor may attempt to pool their resources along with other investors and invest the same amount in the commercial real estate projects.

What are the Benefits of REIT Registration Online?

The list of benefits of REIT registration online is as follows:

Affordable Investment

A REIT registered company offers affordable and simplified investment opportunities with better stability as compared to stocks and bonds.

Regular Income Source

Investing in REITs is said to provide a substantial dividend income and also allows a steady capital appreciation over the long term.

Potential for Capital Appreciation

REITs are trust entities registered under the SEBI and are listed on the stock exchange. This overall allows a steady potential for capital appreciation over the long term.

Portfolio Diversification

The registered REITs also provide portfolio diversification through frequent investment in real estate without buying a property. It is one of the benefits of REIT registration online.

Professional Management

The properties owned by REITs are professionally managed by experts, thus ensuring smooth business operations with no effort on your part to manage commercial real estate.

Dividend Yield

The REITs registration also provides a substantial dividend and interest accruing from the net rental income of the commercial real estate property.

Transparency in Dealing

Since the REITs are regulated by the SEBI, it provides an opportunity to access information on aspects like taxation, ownership and zoning, thus making the entire process transparent and reliable.

Attractive Investment Instrument

Real Estate Investment Trust registration provides an attractive alternative investment instrument in the Indian financial markets. Thus, attracting investors across the markets.

Tax Exemption

A company with a REIT registration is also eligible for several tax exemptions, such as interest income and dividends accrued from a Special Purpose Vehicle (SPV), and rental or leasing real estate.

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What are the Types of Real Estate Investment Trust registration?

The different types of Real Estate Investment Trust registration are as follows:

Equity REIT

Equity REITs are the most common types of REIT registration. It owns and manages income-generating commercial properties like offices, malls and apartments. The income is generated mainly from rent and sales of properties, which is distributed to shareholders as dividends.

Mortgage REIT (mREIT)

Mortgage REITs are a type of registration that primarily invests in mortgage loans and mortgage-backed securities. Typically, they generate income through interest payments on these loans and distribute it among their shareholders.

Hybrid REIT

A hybrid REIT is a combination of features of both Equity REITs and Mortgage REITs. They invest in physical properties as well as real estate debt instruments, which overall helps the investors to diversify across equity and debt.

Private REIT

A private REIT, unlike other types of REIT registration, does not need registration with SEBI and is not traded on stock exchanges. They are offered only to select investors and usually have lower liquidity as compared to public REITs.

Publicly Traded REIT

Publicly traded REITs are registered with SEBI and listed on the stock exchange. Their shares can be freely bought and sold, making them highly liquid; however, they are exposed to market volatility.

Public Non-Traded REIT (Listed REIT)

Public non-traded REITs are basically registered with SEBI but not listed on the stock exchange. Additionally, they also provide some investors with protection, but at the same time, they have lower liquidity since they cannot be traded easily.

What are the Structures for Real Estate Investment Trust Registration?

The structures for Real Estate Investment Trust registration is as mentioned below:

Sponsor of Trust

Typically, a sponsor is the entity or an individual who sets up the REIT and acts on its behalf. In order to qualify as a sponsor or an associate, one needs to have at least five years of experience in real estate development or fund management within the industry.
On the other hand, if the sponsor is a developer, at least two projects must have been successfully completed. Further, at least three sponsors is permitted, each required to hold at least 5% of the REIT's listed units. Overall, the sponsors as a whole must maintain a net worth of Rs.100 crore, while each sponsor individually must have at least net worth of Rs. 20 crores.

Manager

The manager or its associates must have at least five years of experience in fund management, advisory services, property management, or real estate development and must have a net worth of at least 10 lakhs.
The manager or its associates must have at least five years of experience in fund management, advisory services, property management, or real estate development and must have a net worth of at least 10 lakhs.
While a manager holds a responsibility for managing the REITs day to day business operations and overall management. Additionally, the manager also ensures compliance with SEBI guidelines and smooth functioning of the business.

Trustee

A trustee is the one who safeguards the interests of the investors and ensures that REIT functions according to SEBI regulations. A trustee must be a company registered under the SEBI (Debenture Trustee) Regulations, 1993 and must specialize in providing trusteeship services.
However, they must have a sufficient financial resource, infrastructure and personnel to carry their roles and responsibilities. Further SEBI also conduct a review to check their capability through circulars and guidelines to confirm its competence in managing trust related responsibilities.

What are the Eligibility Conditions to Apply for REIT Registration?

The eligibility conditions to apply for REIT registration are as follows:

There must be at least 100 shareholders.
The applicant must be registered as a trust deed under the Registration Act 1908 to authorize REIT activities as per SEBI regulations.
The sponsors must have at least 5 years of experience in the real estate business or fund management.
The sponsors collectively must have a net worth of at least Rs. 100 crores (Rs. 20 crores each), while the managers must have a net worth of Rs. 10 crores.
The applicant must meet the fit and proper criteria according to Schedule II of the SEBI (Intermediaries) Regulations, 2008.
A minimum of 75% of investment assets must be in real estate.
Extends completely transferable shares.
Managed by a team of trustees or BODs (Board of Directors).
The entity needs to be structured as a business trust or corporation.
Not less than 5 individuals should have held 50% of its shares during each taxable year.
At least 95% of REITs' total income should be invested.
Maximum 20% of the corporation's assets must be held in stock under taxable REIT subsidiaries.
A minimum of 75% of gross income from mortgage interest or rents must be received by the applicant for REITs registration.
The applicant must pay a minimum of 90% of the taxable income as a dividend.

What are the Documents Required for REIT Registration Online?

The list of documents required for REIT registration online is as follows:

General information on REIT
Details of Trustee
Investment Strategy
Declaration by REIT and parties to REIT
Offer Document
Details of the Manager
Details of Regulatory Action (if any)
Details of Trust
Business Plan
Declaration by Sponsor
Declaration of a statement
Trust deed
Details of Sponsor
Any other documents required by Schedule II of the REIT regulations

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How to Apply for REIT Registration Online?

The step-by-step process to apply for REIT registration online is as follows:

Filing of an Application

Firstly, the applicant needs to file an application in Form A or file an application for a REIT registration online via the SEBI intermediary portal as specified in Schedule I of the SEBI (Real Estate Investment Trusts) Regulations, 2014.

Meeting the Eligibility Criteria

Secondly, the applicant needs to meet the eligibility criteria as prescribed under Regulation 7 of the SEBI (Real Estate Investment Trusts) Regulations, 2014.

Payment of Application Fees

In this stage, the applicant needs to pay the non-refundable application fees as per Schedule II of the SEBI (Real Estate Investment Trusts) Regulations, 2014.

Furnish a Clarification

If required, SEBI may ask the applicant for additional information or clarification for processing the application for a REIT registration.

Personal Representation

If required, the applicant or the authorized representative may also need to appear before the SEBI for a personal representation on the grant of registration. While professionals from Corpbiz have a decade of experience in representing before the SEBI.

Grant of Certificate of Registration

Lastly, if all the requirements are fulfilled and the required fees are paid, SEBI will then grant the REIT registration certificate in Form B to the applicant according to Schedule II.

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What are the Taxation Rules for Investors under REIT Registration?

The taxation rules for investors under REIT registration are mentioned below-

The dividend income distributed by the REIT is taxable, depending on the tax regime adopted by the Special Purpose Vehicle (SPV). Such that if a concessional corporate tax regime is adopted under Section 115BAA, the dividend received by the investor is taxable at the applicable slab rate; otherwise, they are exempt in the hands of the investor under the pass-through mechanism.
The tax on capital gains depends upon the holding period of REIT units, such that if units are sold within one year, the capital gains are taxed at 20% (short-term capital gains), whereas if units are sold after one year, capital gains exceeding Rs. 1,25,000 in a financial year are taxed at 12.5% without indexation benefits.
Any other distribution, like interest income received through the REIT structure, is taxable at the investor’s individual slab rate, typically with tax deducted at source.

What are the Compliance Requirements for REIT Registration?

The list of compliance requirements for REIT registration is as follows:

The Board must appoint a person who will be responsible for maintaining REIT records and documents to protect investors' interests.
The trustee is required to hold REIT assets for the benefit of the unit holders according to the Trust Deed and SEBI REIT Regulations, 2014.
The trustee must ensure that the manager of the REITs registered corporation complies with the requirements of the reporting and disclosure obligations as specified by SEBI.
The trustee must periodically review the transactions between the manager and its concerned associates, as well as monitor the unit holder complaints and their redressal by the manager.
It is the responsibility of the trustee to make a timely declaration and distribution of returns to unit holders as per the SEBI regulations.
The trustee must also ensure that the manager conducts a meeting of unit holders, oversees voting, and declares the outcome.
The REIT must also make an initial public offer (IPO) of units with an offer size of not less than Rs.250 crores.

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What are the Reasons to Trust Corpbiz for Real Estate Investment Trust Registration?

Extensive Industry Expertise

Our team comprises seasoned legal, financial, and compliance experts with years of experience in REIT structure formation and regulatory advisory.

Complete Assistance in REIT Registration

We provide end-to-end support for REIT registration from SEBI compliance to structuring and documentation, ensuring accuracy and adherence to regulations.

Documentation & Compliance Support

We assist in drafting trust deeds, investment structure documents, filing submissions, and ensuring compliance with SEBI, FEMA, and income tax guidelines.

Financial Evaluation & Audit Coordination

Our experts guide you through financial vetting, asset valuation, and audit requirements to meet eligibility and disclosure standards for real estate investment trust registration.

Transparency and Regulatory Clarity

Our advisory ensures complete transparency in filings, disclosures, ownership structures, and compliance reporting, building investor confidence.

Smooth Entry into the Real Estate Investment Sector

We streamline the registration journey, eliminating bureaucratic delays and making your establishment in the REIT investment sector seamless.

Tech-Enabled Compliance Solutions

With automated tracking, documentation workflows, and digital support, we offer technology-driven solutions for simplified REIT compliance.

Post-Registration Compliance Services

Our team helps your REIT stay fully compliant with periodic reporting, tax filings, valuation cycles, audit obligations, and SEBI submissions.

Accelerated Registration Process

Our strategic approach ensures swift processing, helping avoid unnecessary time loss and ensuring quicker market readiness.

Strong Liaison with Regulatory Ecosystem

We maintain communication pathways with financial and regulatory bodies to support smooth approval and compliance alignment.

24×7 Dedicated Support

Experience uninterrupted guidance regarding your REIT registration, compliance, and advisory needs with our dedicated support team.

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Frequently Asked Questions on REIT Registration

Registering a REIT involves submitting an application in Form A or through SEBI’s Intermediary Portal, ensuring compliance with the eligibility requirements under Regulation 7, and paying the prescribed non-refundable application fee.

SEBI may seek additional clarifications or call for personal representation during the review process. Once all conditions are met and fees are paid, SEBI issues the REIT Registration Certificate in Form B, completing the REIT registration process.

REITs (Real Estate Investment Trusts) are companies that own, operate, or finance income-generating real estate. They allow investors to own a share of high-value real estate projects and earn returns in the form of dividend income.

Similar to mutual funds, REITs pool money from multiple investors to purchase and manage real estate assets, such as commercial buildings, malls, or rental properties, generating consistent income.

The objectives of REITs are to provide investors with a regular income, portfolio diversification, liquidity, transparency, and access to professionally managed, large-scale real estate without direct property ownership, thus aiming for both income and long-term capital appreciation.

REITs generate investment returns through periodic dividends, interest payouts, and capital gains from renting or leasing commercial real estate after deducting management and maintenance expenses.

You can invest in REITs in various ways, like purchasing shares of REIT stocks, mutual funds, and exchange-traded funds. REITs also play a growing role in defined benefit and defined contribution investment plans.

The top performing REITs in India are the Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust. Kotak International REIT Fund of Funds is the only top-performing international REIT fund in India.

Yes, you can create your own REIT, provided you meet the eligibility criteria as per the SEBI (Real Estate Investment Trusts) Regulations, 2014. It is easier for those businesses that are already engaged in managing and owning income-generating commercial properties like office spaces, warehouses, malls, hotels or industrial parks. It starts with forming a trust, followed by appointing the mandatory parties and registering with SEBI.

Yes, if you have invested in a publicly listed REIT, you can sell your units on the stock exchange during market trading hours, just like selling shares. However, the selling price will depend on factors such as market conditions, demand, and the performance of the REIT’s underlying assets.

The minimum number of investors required for a REIT registration is 100 shareholders.

The various parties to REIT include its trustee, sponsor(s) and manager. Their roles and responsibilities have been described under the REIT regulations and circular issued thereunder.