How to Register Property Under a Company Name in India – Step-by-Step Guide

Registering property in a company’s name is a strategic move often adopted by businesses for asset management, tax planning, or investment purposes. In India, the process involves not just transferring the property but also ensuring that the company itself is legally established and authorized to hold such assets.

This blog walks you through everything you need to know about registering a property under a company name in India — right from setting up the business to completing the property registration at the sub-registrar’s office.

If you're reviewing properties for business purposes, a detailed listing of compliant options can offer better clarity during the registration process.

Step 1: Company Registration – The Foundation

Before a property can be registered under a company’s name, the company must be legally incorporated under Indian law. This ensures that the entity is recognized as a separate legal person, capable of holding property and entering into contracts.

1. Choose the Right Business Structure

The first step is deciding on the appropriate legal structure for your business. Options include:

• Private Limited Company (Pvt Ltd)
• Limited Liability Partnership (LLP)
• One Person Company (OPC)
• Partnership Firm
• Sole Proprietorship

Each structure comes with different legal, tax, and compliance obligations. A private limited company is the most common choice for businesses looking to acquire property.

2. Secure Name Approval

Apply for the desired company name through the Ministry of Corporate Affairs (MCA) using the RUN (Reserve Unique Name) service. The name must be unique and comply with MCA naming guidelines.

3. Obtain DSC and DIN

• Digital Signature Certificate (DSC): Required for signing electronic forms.
• Director Identification Number (DIN): Mandatory for all proposed directors of the company.

4. Prepare Incorporation Documents

Key documents required include:

• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Identity and address proof of directors and shareholders
• Proof of the registered office address

5. File for Incorporation

Submit the incorporation application using the SPICe+ form on the MCA portal. This integrated form covers:

• Company incorporation
• PAN and TAN allotment
• GST registration (optional)

6. Obtain Certificate of Incorporation

Once approved, the Registrar of Companies (RoC) will issue the Certificate of Incorporation. This officially marks the birth of the company as a legal entity.

Step 2: Property Transfer and Registration

After setting up the company, the next step is transferring property to the company’s name through a valid legal document and registering it with the appropriate authorities.

1. Draft a Sale Deed or Transfer Document

This legal document outlines the terms of sale or transfer, identifies the buyer (the company), seller, and includes details about the property.

In some cases, a conveyance deed or gift deed may be used, depending on the nature of the transfer.

2. Pay Stamp Duty

Stamp duty is a state-imposed tax and varies from one state to another. It is calculated based on the higher of the following:

• The market value of the property, or
• The actual transaction value

Many states offer online payment of stamp duty through their respective registration departments.

3. Register the Property at the Sub-Registrar's Office

Visit the sub-registrar office where the property is located to complete the registration. Submit all required documents and pay the registration fee.

4. Documents Required for Registration

Ensure you have the following:

• Original and duplicate copy of the sale deed
• Title documents (if applicable)
• Company’s Certificate of Incorporation
• PAN and TAN of the company
• Identity and address proof of authorized signatory/director
• Board Resolution authorizing the purchase
• No-Objection Certificates (if required)
• Latest property tax receipts

5. Document Verification and Final Registration

The sub-registrar will:

• Verify the documents
• Collect biometric data and signatures
• Process the registration

Once completed, the property is officially recorded in the company’s name.

6. Receive Registered Documents

The registered sale deed, digitally signed and stamped, will be available either in physical form or online, depending on the state’s system.

Key Documents Checklist

Here’s a quick checklist of essential documents for both company registration and property registration:

For Company Registration:

• Memorandum & Articles of Association (MOA & AOA)
• Identity and address proof of directors/shareholders
• Proof of registered office
• Certificate of Incorporation
• PAN and TAN of the company
• Digital Signature Certificate (DSC) & Director Identification Number (DIN)

For Property Registration:

• Sale deed or conveyance deed
• Title papers of the property
• Identity/address proof of authorized company representative
• Company incorporation certificate & PAN
• Board Resolution approving property purchase
• Property tax receipts
• Stamp duty and registration fee payment proof

Important Considerations Before You Proceed

• Separate Legal Entity: A company, once incorporated, is a separate legal person in the eyes of law. It can own, lease, and sell property independent of its directors or shareholders.
• Compliance Matters: Property held in the company’s name must be shown in the books of accounts and financial statements.
• Professional Advice is Key: Due to the complex nature of property laws and corporate compliance in India, it’s advisable to consult with a chartered accountant, company secretary, or real estate lawyer before proceeding.
• Tax Implications: Buying property through a company may have different capital gains or GST implications compared to buying as an individual. Get clarity from a tax advisor.

Understanding the key factors in selecting a suitable commercial space can help avoid complications later in the registration process — here’s a detailed overview of what to check before buying commercial property for business use.

Conclusion

Registering a property under a company's name in India involves meticulous planning — from incorporating the company to drafting and registering the sale deed. While the process can seem overwhelming, having the correct documentation and professional guidance makes it a smooth and legally secure experience.

Whether you’re expanding your business, investing in real estate, or purchasing an office space, ensuring the registration is done properly safeguards your rights and simplifies future transactions.

Frequently Asked Questions (FAQ)

1. Can a private limited company own property in India?

Yes. A private limited company is considered a separate legal entity under Indian law. It can own, buy, sell, lease and mortgage property in its own name, independent of its shareholders or directors.

2. What type of property can a company purchase in India?

A company can purchase both movable and immovable property, including residential, commercial, industrial, or agricultural land (subject to state laws and zoning regulations). The property must be used in alignment with the company’s objectives mentioned in the Memorandum of Association (MOA).

3. Is it mandatory to have a board resolution for property purchase?

Yes. The company's board must pass a resolution authorizing the purchase of property and naming the authorized person to sign the sale deed and complete the registration process on the company’s behalf.

4. What are the stamp duty and registration charges for company property purchase?

Stamp duty and registration fees vary by state and depend on the property's market value. In some states, companies may pay a slightly higher stamp duty than individuals. Check with your state’s registration department for accurate rates.

5. Can a foreign company buy property in India?

A foreign company can acquire property in India only under specific conditions outlined by the Foreign Exchange Management Act (FEMA). Typically, foreign companies can purchase property for establishing branches or offices, but not for investment purposes unless approved by the Reserve Bank of India (RBI).

6. Who signs the sale deed when a company buys property?

An authorized signatory (usually a director or officer) signs the sale deed on behalf of the company. This must be backed by a board resolution authorizing the transaction and the representative.

7. Can a startup or newly formed company register property in its name?

Yes. As long as the company is legally incorporated and holds a valid Certificate of Incorporation, it can register property under its name, regardless of age or turnover.

8. Do we need a PAN and TAN for registering property in a company’s name?

Yes. The company’s Permanent Account Number (PAN) is mandatory for property registration, especially if the transaction value exceeds ₹50 lakh. TAN is required if the company needs to deduct TDS on the transaction.

9. What are the legal risks of registering property under a company name?

If due process is not followed, such as missing documentation, unpaid stamp duty, or lack of board resolution, it may lead to legal complications, disputes, or even cancellation of the registration. It’s important to involve legal professionals throughout the process.

10. Can a company lease out or sell a property it owns?

Yes. A company can lease, sell, or transfer ownership of a property it owns, subject to the approval of the board or shareholders (depending on the size of the transaction) and compliance with applicable company and property laws.