As the Indian economy is stable and rising and India is moving ahead to become the third largest economy in the world, this has created a huge rise in different markets across India. One market that’s seeing tremendously stable growth is the real estate sector and NRIs are some of the biggest investors in the market when we look deeply into the nitty gritty of it. A recent report published shows a trend, that NRIs have invested around or over ₹20,000 crores directly into the Indian economy by investing in Indian real estate.
This clearly shows that there’s a lot of opportunity for NRI to invest in commercial property in India.
However, navigating the process of buying a property and Legal compliance for NRIs in commercial real estate is a tricky concept. One important aspect is understanding the different documentation requirements. Thus ensuring legal compliance when NRIs invest in commercial property in India.
This blog will serve as the commercial Property Investment Guide for NRIs in India. We will simplify the process of documentation you want to have in order.
Table of Contents:
- Why NRIs Should Consider Commercial Property Investment in India
- Important Documentation Requirements for NRIs to buy commercial property in India
- A quick Review of All the Documents Needed for NRIs
- Importance of Compliance and Legal Clarity
- Conclusion
Why NRIs Should Consider Commercial Property Investment in India
There are multiple reasons why NRIs investing in commercial property in India is a great proposition:
1. High Rental Yields
If you’re an NRI it’s advised to invest in commercial property. Commercial property provides significantly greater rental revenue than residential homes. This leads right away to an increased level of return on investment.
2. Economic Growth Potential
Real estate in India has frequently offered an outstanding return on investment, with property values continually rising. The general trend of capital growth offers another element to better investment opportunities for NRI.
3. Portfolio Diversification
Investing in commercial property helps NRIs broaden their financial portfolio beyond trading equities and shares. This type of fund diversification helps minimize risks while creating a stronger financial plan.
Properties provide a great source of ROI and the documentation once understood can help NRIs to invest in property. Let’s look into the documentation of it.
Important Documentation Requirements for NRIs to buy commercial property in India
Here is a break-up of all the important documents needed:
- Identity Proof
A valid passport is a necessity. If you have an OCI (Overseas Citizenship of India) Card or PIO ( Person of India) Card, you need these as well.
- Address Proof
Documentation regarding proving your country and place of residence like utility bills or bank statements from the resident country banks or govt. Issuing an identity card will work too.
- Income Proof
Income Proof is needed as well. These proofs are income tax or salary slips, income tax returns from your country of residence along with employment verification letters.
- Bank Documents
Having a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account In India is a necessity. Bank statements from your resident place banks can serve as proof of funds.
- Property Related Documents
Obtaining main documents like title dead (establishing ownership ) or sale deed, property tax records and land records are important. These documents will be examined thoroughly during the final process.
- Tax Compliance Documents
Procure a TAN (Tax Deduction Account Number) and ensure that you submit any type of documents to taxes that will be required by Indian law.
- Power of Attorney (PoA)
If you are not directly present in front during the process, you can present a trusted representative through Power of Attorney. This helps them to act directly on your behalf during the purchase of property.
- Clearance Certificate
Obtaining different clearance certificates from different regulatory bodies and legal authorities is necessary depending upon the type of property.
- Legal Consultation
When processing the documentation requirements for NRIs in Indian real estate, do seek legal advice from a professional that specializes in the law of real estate in India to understand and go through all the legal issues and specifics with ease during the purchase and transaction related to property.
Also Read: Residential vs. Commercial Property: Which Investment Option is Better for NRIs in India?
A quick Review of All the Documents Needed for NRIs
- Passport and PIO/OCI card
- Address Proof
- Income Proofs
- Bank account Details (NRO/NRE)
- Property Documents
- Tax Documents (TAN and others)
- Power of Attorney (PoA) – If needed
- Clearance Certifications
- Legal Solutions/Consultations
Importance of Compliance and Legal Clarity
Adhering to different documents required is a necessity for NRIs investing in commercial property in India:
- Complete and correct documents help ensure legal compliance, which helps safeguard your interests and reduces the risk of any unplanned complications.
- Transparency is another key aspect. Having all documents that are easily available fosters a sense of trust and clarity throughout the transaction procedure, both for sellers as well as NRI parties. Transparency can make the process quicker and more convenient.
- Finally, completing documentation directly helps in completing property transactions. By providing all the right documents, you can easily expedite the process of approval and thus provide for a well-timed and effective investment in commercial real estate in India.
Also Read: Top Cities for NRI Real Estate Investment in India
Conclusion
Grasping the documentation requirements and understanding the legal compliance for NRIs in commercial real estate will allow the Non-Resident Indians to fulfill their dream of investing and owning a piece of land in their motherland. They just have to be careful about the laws and proceed with the right documents to do that.
This commercial Property Investment Guide for NRIs will surely help people clear all their doubts when they are planning to invest in commercial property.
Ready To Invest In India?
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From choosing the right property based on your needs and aspirations to helping you with clearing out all the legalities and final transactions, Omaxe LTD. will guide you from start to finish in achieving your goal of investing in a commercial property in India. With Omaxe Ltd. let’s make your property ownership dream into a reality!
