FAQ

Tokenised ownership in real estate describes an investment process wherein a number of investors join together to invest in a real estate asset so that all of them can benefit from a share of the income that the asset generates and any appreciation in the value of the property.

Squareshare is a web-3 tokenized property investing marketplace platform that makes it easy to start owning property and diversifying your investment portfolio with as little as Rs. 5000.

First-time investors can begin building their property investment portfolio by leveraging the power of blockchain technology which helps select and secure high-growth Open land, residential, commercial, and on-going development assets from the Squareshare platform.

You can leverage industry-leading flexibility with shorter time horizons, a great mix of high-growth assets, and stress-free exit capabilities.

Nope, all the funds received from the subscribers are directly deposited with the designated LLP holding Company's Escrow bank account through Razorpay payment gateway's route settlements.

Additionally, Limited Liability Partnership(LLP) is a legally registered entity that holds the asset's ownership(Title deed). The investors via the Squareshare Platform become designated partners of that LLP. This gives you exclusive legal rights to asset ownership, and Squareshare Platform has no claim on the project in later stages.

Squareshare brings to you a wide variety of carefully screened investment properties that meet personalised investment goals.

With Squareshare, you have a one-stop marketplace where you can diversify your portfolio from a wide range of rent-generating, capital-appreciation assets. Each investment property is carefully analysed on legal, technical and commercial dimensions. Less than 1% of our entire deal flow makes it to the offering stage.

The parent company is Reapp Technologies Private Limited. Squareshare mobile app is a subset product.

Our vision is to make it incredibly easy for everyone to invest in different Real World asset classes — regardless of investment amount or experience.

The Squareshare team is passionate about making real estate investing accessible for everyone.

Learn more about us in the "About us" section.

When you subscribe to an investment opportunity in Squareshare, you are not merely subscribing to an investment but an experience. You would have access to all your investments on a highly automated and de-centralised platform, and the experience will be absolutely seamless. Each asset acquired is curated with investor requirements in mind.

Squareshare Platform does not restrict itself only to Commercial Real Estate. Any asset class that can generate attractive returns can be listed on Squareshare.

We create a dedicated Limited Liability Partnership Firm (LLP) for every asset which holds the title deeds & ownership.

Investors via the Squareshare Platform are named as designated partners.You may check the details of that LLP on the Ministry of Corporate Affairs website.

Any individual or corporate entity with a PAN in India and a rupee-denominated account is eligible to invest.

The Squareshare platform includes high-yielding residential, commercial, redevelopment, warehouse, and hospitality properties across all stages, including pre-construction, assignments, and re-sale. Each property functions like a separate Special Purpose Vehicle. The title is owned by this Special Purpose Vehicle (like a limited liability partnership company), which owns and manages the property for investors to own units/shares.

Therefore, individual investors do not hold the title to the property as it is collectively owned. New properties are typically added to the platform every month.

Manage your investments with a tap through the Squareshare mobile app in a single place, available on Apple App Store or Google Play store.

We encourage a diversified portfolio. So, yes, you can invest in more than one property across locations, asset types, and investment tenures.

Your ownership structure in the assets is designed in a way that the ownership is not dependent on Squareshare. You will be allotted equity shares and compulsorily convertible debentures in an SPV that shall acquire the real estate asset listed on our platform. This ensures that the compliances pertaining to your investment in the SPV are filed/made from time to time with the necessary government authorities. The title documents executed and registered in favour of the said SPV shall be stored as a public document in government databases and records. Your investment remains absolutely secure on the blockchain security layer regardless of what happens to Squareshare.

All investment contains risk to a certain extent. Real Estate Investment via Squareshare carries inherent risks, including but not limited to liquidity and potential loss of capital. Please consult your financial advisor before making any decision. Squareshare is merely a facilitator between the buyer and seller and will not be liable for any loss arising from investments.

With Squareshare, you can invest in various assets with rent-generating, capital-appreciated open lands or flip-flopping property generating income. Investing small in multiple assets reduces your risks and increases your diversity to make higher average returns. Besides, with no hands-on intervention requirement, expanding your portfolio across geographies is as easy as a few clicks.

Typically annualized returns could vary from 14-20% based on the opportunity. While these returns are not guaranteed, they are more or less predictable. Every option comes with its unique risk-return profile, and investors are advised to evaluate each based on their investment goals and risk appetite.

Squareshare charges an annual management fee between 1 - 2.5% of the amount raised through the platform for rental-generating properties. In some instances, Squareshare may charge a deal sourcing fee. The property’s Offering Memorandum lists the exact fees per property.

The investment horizon is the expected time period in which the investor can expect to exit or when the investment property is sold off. It is wise to consider the investment horizon from 3 to 5 years. Squareshare platform allows investors to exit their investment even before the property is sold through an open trade mechanism. Anyone can buy the investor’s holding in property through our secondary marketplace (Coming soon).

Every deal goes through 100+ checkpoints. After our internal team and Asset Managers have perused through the information, we deploy reputed legal firms, wherever required to attest for the legal sanctity. Besides the legal diligence, we also get International Property Consultants and Technical Consultants to conduct and deliver Property Valuation and Technical Feasibility reports. All such reports are made available to investors through the Squareshare online portal.

In a primary investment offering, an investment property is freshly offered for subscription through Squareshare. This involves creation of a Special Purpose Vehicle (SPV) in which investors purchase fractional ownership.

In a secondary investment offering, investors are purchasing fractional ownership from existing investors of the asset who intend to make an exit. Squareshare plays the role of a facilitator in a secondary offering through secondary marketplace (Coming soon).

An Expression of Interest (EOI) asset Share amount is the initial transaction document which outlines the terms and conditions of the investment. Investors confirm their interest in the primary offering by paying the EOI, or asset Share commitment.

Please refer the Return & Refund Policy to understand the mechanism governing the EOI deposit.

When the requisite number of investors, who together will purchase the property, and deposit the asset Share amount (or EOI), is aggregated, the subscription process is supposed to be completed.

If an offer is not fully subscribed within a period of 90 days, the asset Share amount is refunded to the investors without any deductions.

We offer a completely hassle-free investment and management experience. The entire process is completely paperless. You can invest from anywhere, and it does not require any physical presence. Property visits can be arranged at the request of interested investors. support@Squareshare.app

Property visits can be arranged. Kindly get in touch with your Relationship Manager or write to support@Squareshare.app

You need to e-sign your part of the entity incorporation documents provided on the platform. Our investor onboarding team will guide you through the process.

An investor gets ownership in proportion to the total investment made in the SPV, which acquires and holds the asset in the form of shares in a Limited Liability Partnership (LLP).

Pre-orders typically remain open for 5 to 10 days or until the investment interest exceeds 150% of the funding target. If you are keen on the investment, you should commit to investing as soon as possible rather than waiting until later.

Please subscribe to our newsletter to keep up-to-date with properties that may be coming up for pre-orders.

When a pre-order is oversubscribed, Squareshare - in general, will allocate investments based on a first-come, first-served basis. From time to time, we may offer investment on a scale-back basis, in which case your commitment may be reduced on a pro-rata basis. Please check the pre-order’s oversubscription policy for more details.

Your investment is completed as soon as the opportunity is fully funded and private placement of your investment is done in the SPV that shall acquire the asset listed. Squareshare generally has a time frame of 60 days to ensure that the property receives complete funding.

The return on your investment is in the form of interest on debentures. The interest/coupon rate of the debentures you hold is a function of the rents generated and interest earned on the security deposit. This is transferred to your bank account within the 10th working day of every month subject, to the receipt of rents from that particular asset.

Note: Specifics of coupon rate, interest on the security deposit, amount of rent to be received from the tenant, etc., of each opportunity will vary based on the asset.

You can view the performance of your investment through our online dashboard. Please note that the property's Net Asset Value (NAV) will be updated half-yearly.

Yes, as a co-owner, with voting rights, you have an absolute right to choose property management to assign within the co-owners or request to get the property management service from the Squareshare platform.

Investors who have held their shares for 90 days or more from the date of purchase or asset closing date (whichever is later) can list their shares for sale on the marketplace.

Once shares are listed on the marketplace, you can cancel the listing till there are no purchases initiated against that listing. Once we receive a purchase request from any interested buyer, you cannot cancel the sale listing. If, for some reason, the purchase transaction does not go through (for example - the buyer's payment has failed), shares will be automatically and instantaneously listed back on the marketplace.

It may or may not be; it depends on the purchase transaction initiated by the buyer. It is possible that a buyer may buy partial shares from a listing. So if you have listed, say, 100 shares, it's possible that only 40 shares are sold. The balance of 60 will automatically be listed back on the marketplace for another round of purchases. Your dashboard (My Investments) page will be updated to reflect the actual number of shares sold.

You, as a seller, will decide your selling price/share based on your expected returns, holding period, and market growth.

We have waived our transaction fees for all sale transactions executed on the marketplace. When a transaction fee is added in the future, it will be listed on our website.

If more than one seller sells shares at the same price point in the same property, then the shares listed first will be given preference.

Yes, you must sign a Share Transfer form (sent via email) to complete the share transfer to the buyer.

For each asset listed on the Squareshare Platform, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property. Your investment shall be towards subscription of designated limited liable ownership of an LLP that holds the property and represents your fractional investment.

Squareshare will provide asset management services to the LLP and undertake accounting, secretarial, reporting, leasing, maintenance and other operational aspects under the asset management services contract with the SPV.

A Special Purpose Vehicle is an entity incorporated/created under the law, being a Partnership firm, LLP etc., for a specific lawful purpose.

Any investment opportunity listed on the Squareshare platform will be owned by an SPV being a limited liability parternship (LLP) set up for this specific purpose.

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Squareshare undertakes the legal due diligence of the property before it is purchased by the LLP.

However, you are welcome to seek tax and legal advice from your advisors to understand if the opportunity listed is suited for you. You should you engage any legal/tax advisor, we will be happy to answer any questions that they may have. Reach out "hello@squareshare.in" for any further clarifications.

To begin with, you will be required to sign an Expression of Interest to confirm your commitment and remit 5 to 10% of your investment amount through payment gateway. Later Drawdown Notice will be sent to you once the opportunity has 100% commitment from all interested investors, post which you may remit the remaining funds towards your investment. This is followed by the LLP Subscription Agreement (SSA) with the LLP. The LLP also executes the Asset Management Agreement with Squareshare for which you will be executing a consent letter.

At the time of resale/liquidation of your holding in the LLP, you will be required to execute securities transfer documentation which include a request letter for transfer of securities, a deed of adherence to the SSA, and securities transfer forms.

All these documents shall be executed through e-signing process complete with an audit trail and no physical copies will have to be signed. This makes your investment process completely digital, fast, transparent, and very convenient.

Squareshare has an experienced team that performs thorough technical and legal due diligence before listing any property on our platform. We engage reputed Tier-I law firms to conduct due diligence on the property title.

Yes. The investors can view all the asset-related documents including the Lease/Rental/Tenancy Agreement/ Deed or Leave & License Agreement uploaded on the investor’s respective dashboards.

When you purchase asset Shares in a Squareshare platform property offering, you are directly buying a membership interest in the individual LLP that owns that property asset.

For example, if you purchase 1% of the asset Shares in a single home offering, you would then be entitled to 1% of the economic interests of the asset over time, which may include income from rent or property value appreciation.

All ownership documentation is publicly available online by going to the property asset link on polygon blockchain.

You can also find these documents in the Assets Overview section of your Squareshare App dashboard.

We at the Squareshare platform believe that all real estate benefits from tokenization for the following reasons:

1. Creates the opportunity for a marketplace to buy, sell, or trade asset Shares of real estate.

2. Reduces/Eliminates intermediaries.

3. Increases liquidity of traditionally illiquid assets.

4. Increases access to fractional ownership.

5. Decentralization creates trust and security.

6. Allows real estate transactions to truly become peer-to-peer.

7. Allows investors to diversify their risk.

The security of our platform and privacy of all your data is our utmost priority. Squareshare's platform is built keeping the best-in-class security and privacy features in mind using on-chain polygon blockchain layer.

All your data is hosted on secure cloud networks and all sensitive client data is encrypted and stored with 256 bit SHA encryption.

Squareshare will never share your data with any third party. For more details, please refer to our privacy policy.

Once you invest in a Squareshare property, unlike REITs, our real estate investment vehicles are private investments not tied to the stock market. This means that, for example, residential properties have no correlation to activity on the market (making them a great way to diversify your investment portfolio across different asset types).

We are required by law and/or industry regulation to collect your name, address, date of birth to create your account.

All personal data is secured with SSL on our website and stored in encrypted, non-public storage on AWS.

A blockchain is a distributed ledger that records transactions in an immutable way. Because transaction history is constantly and simultaneously verified by users all over the globe - the risk for fraud is greatly reduced.

Almost all cryptocurrencies transact on a blockchain and there are many use cases beyond cryptocurrency, including real estate transactions.

Asset Shares are digital assets created on a blockchain. Each blockchain has a native coin, for instance, Bitcoin for the Bitcoin blockchain and Ether for the Ethereum blockchain. Assets built on existing blockchains are referred to as asset Shares. In Squareshare's use-case, the asset Shares will represent physical real estate assets and this ownership will be recorded on top of the Ethereum blockchain. All transactions of these asset Shares will also be recorded in this immutable way.

In short: better provenance, security, and accessibility. Ownership is secured on the blockchain, an immutable ledger that records all transactions. It makes our platform accessible to a wider audience and able to integrate with other platforms in DeFi. As titles and government services digitize, Squareshare will be ready to integrate with them.

In future: blockchain will provide the ability to collateralize your asset much more smoothly in various DeFi platforms, giving a hard asset to borrow against instead of the current more volatile standard of borrowing with cryptocurrency as collateral.

Yes, tokenized real estate is considered as a security. We at Squareshare are determined to be fully compliant with all that designation entails from companies act and other applicable laws.

Each property has a different number of asset Shares issued, determined by Squareshare and the property’s Sponsor/seller. Each project will also have a different asset Share mining method that will determine the terms of the investment opportunity.

An ERC-20 standard contract on Ethereum. It is upgradable and we will continue to add audited custom features to better serve our users.

Asset Share holders can receive distributions if the particular property has positive cashflow and the tax benefits involved in real estate investing. The owner of the asset Share also benefits from any appreciation in the real estate asset.

Said in traditional terms, ownership of this Share is comparable to being a Limited Partner in an designated LLP.

We currently accept INR for all purchases via the Razorpay payment gateway.

No. If Squareshare went out of business, each property LLP would remain as a separate legal entity for property holding, tax, accounting, liability, and member ownership purposes. Regardless of what happens to Reapp Technologies Private Limited., the assets and the Squareshare property Shares of an LLP would remain independent and intact.

The Squareshare property Shares would still represent and evidence ownership of the property contained in the LLP and, as such, could be transferred in the market, as needed, so long as applicable securities transfer rules are complied with.

Not at this moment; we do not have a clawback feature to claw back your asset Shares from your Metamask wallet. Rather, we request to send back Shares to the designated LLP's Metamask address when you've sold them to someone.

We use a 3rd party provider called Hyperverge to perform Identity Verification.

For international investors, if you have a passport, please use it for your KYC process instead of a Driver’s License or local ID. This is because not all IDs share the same format. Some country’s Driver’s Licenses don’t have expiration dates, which will confuse the automated software.

Whereas most Passport formats are standardized even if they're from different countries. In order to comply with India's regulators , we have to reject all IDs that are not clear or in good quality where information cannot easily be verified by a human.

If your account creation was rejected multiple times please try to take higher quality photos or use your Passport instead.

If you still cannot pass ID Verification, please reach out to hello@squareshare.in and we will look into it right away.

Every investment opportunity goes through several checks, both internal and external. Internally, the opportunity is validated by Asset Management team, and externally, we use reputed third parties – legal firms, Property Consultants, and Technical Consultants to conduct and deliver Title, Property Valuation and Technical Feasibility reports. The structure of the investment is curated depending on size and duration to make the returns more tax effective for the investors.

Yes. The SPV deducts a 10% TDS before remitting returns to Resident Indians and 20.8% for NRI Investors monthly. Resident Indians can submit Form 15G/15H and NRI’s* can submit TRC for reduced TDS.

*NRIs can explore benefits under Double Taxation Avoidance Agreement (“DTAA”) entered with the respective country, subject to the availability of a Tax residency Certificate (“TRC”).

Taxation occurs at 2 stages: On monthly returns: This would be classified under “Interest on Capital” in an LLP structure and tax would be deducted @ 10% u/s 194A of the Income Tax Act. The taxability of this income depends on the investor’s tax slab rate.

On selling the asset: The tax treatment in any capital asset would largely depend on the timing of the sale and endeavor will be to provide tax effective returns to the investors, within the regulatory framework. The SPV pays the tax payable on Capital gains at an entity level and post-tax returns are distributed to the investors. Profit share from an LLP is exempt u/s 10(2A) of the Income Tax Act, hence this distribution is tax exempt. However, this tax exempt income needs to be disclosed in the ITR.

There is TDS at the point of earning (accrual) of the income or payment, whichever is earlier. There would not be any further TDS on overseas repatriation. For further clarity on overseas repatriation, you may consult with your bankers and chartered accountant / tax advisor.

Taxation would be at the time of sale of shares by the recipient in the family. Indexation would be applied on the cost to the original owner. This however should not be construed as a tax advise.

You may consult with your lawyer for the inheritance and with your Chartered Accountant / Tax advisor for the taxation part. The platform would provide all the available support to make this documentation seamless.

A partner earning Income / profit in a Limited Liability Partnership (LLP) SPV (classified as Profits and Gains from Business / Profession) would need to file ITR-3.

For an Investor in a Private Limited SPV, the income is in the nature of interest or dividend (classified under Income from Other Sources), ITR – 1 or 2 as applicable. Our aim is to make this filing as smooth as possible for the investor and our platform shall provide the reports required which can ease out reporting in the required section of the ITR.

No. Such transactions do not fall under transfer of Immovable property u/s 194 Income Tax Act. This would be transfer of partnership Interest in a Limited Liability Partnership(LLP) or transfer of shares + transfer of listed debentures in a Private Limited. You may consult with your Chartered Accountant / tax advisor for detailed tax implications.

The typical deductions are tax deduction at source, property management fee and property tax.

Distributions are taxable directly in the hands of the investor as per his/her tax bracket. If you are a Resident Indian, TDS would be deducted on distributed amount at 10% and for Non-resident Individuals (“NRI”) it will be deducted at 30% or as per applicable rates in DTAA subject to availability of valid TRC and income tax provisions.

Rents : Rents received from the property are distributed as interest on debentures which are taxable directly in the hands of the investors (post applicable withholding tax which can be claimed by the investor at the end of the year).

Capital Gains :The profit on sale of commercial property is considered as capital gains. The profit shall be considered long-term gain, if the property was held for more than 24 months and will be taxed at 20%, irrespective of the quantum of gains. The benefit of indexation can be explored in case of long term capital gains. However, if the property were to be sold before 24 months have passed, the same becomes taxable as short-term capital gains and is taxed as normal income. Please consult your financial advisor for more details as income tax provisions are subject to change from time to time.

Yes, the TDS on your distributions is paid and deposited against your PAN and can be claimed back at the end of the year.

A TRC is a Tax Residency Certificate provided by the country where you are currently residing. India has a Double Tax Avoidance Agreement (DTAA) with almost all major countries that reduce TDS to lower thresholds of 10-15% (depending on the provisions of the DTAA). However, the benefit of the reduced tax rate is only available to users who are able to produce a TRC. Please speak to your tax advisor on how you can procure a TRC for your country of residence.

Yes, NRI’s certainly can. The products listed are more suitable for NRI’s as they do not generally have the bandwidth to physically visit the properties before investing, complete the legal formalities and managing their investment.

Money can only be transferred from an INR denominated account in India.

Even if an NRI’s income in India does not exceed the basic exemption limit, taxes may be withheld as per income tax provisions. Such an NRI can claim refund of taxes withheld by filing a tax return in India.

Under Indian Income-tax law, a Non-resident Individual (NRI) is required to pay tax on any Indian sourced or received income in NRO account that exceeds the basic exemption limit, as per applicable slab rates.

NRIs can benefit from Double Taxation Avoidance Agreement (DTAA) entered with their respective country, subject to availability of Tax Residency Certificate (TRC). Please consult your financial advisor for more details as income tax provisions and tax treaties are subject to change from time to time.

*TDS will not be dedcuted subject to submission of forms 15G and 15H by specific persons.

Yes, from either an NRO account or an NRE account.

At the time of redemption or a monthly pay out, an NRO account is preferred vis-à-vis an NRE due to additional compliance obligations from RBI for the investor. In case remittance is required in the NRE account, the investor is advised to first seek a confirmation from their bankers and tax advisors for the required documentation. Pay outs will be made into the verified accounts provided by the investors on the platform.

Taxation occurs at 2 stages: On monthly returns: This would be classified under “Interest on Capital” in an LLP structure or “Interest on Debentures” in a Private Limited structure and tax would be deducted @ 10% u/s 194A of the Income Tax Act, similar to interest earned on a bank deposit. The taxability of this income depends on the investor’s tax slab rate. On selling the asset: The tax treatment in any capital asset would largely depend on the timing of the sale and endeavour will be to provide tax effective returns to the investors, within the regulatory framework. The SPV pays the tax payable on Capital gains at an entity level and post-tax returns are distributed to the investors. Profit share from an LLP is exempt u/s 10(2A) of the Income Tax Act, hence this distribution is tax exempt. However, this tax exempt income needs to be disclosed in the ITR.

TDS is applicable on all payments made to you. You may consult with your Chartered Accountant / Tax Consultant for the same.

Squareshare can guide you to the extent possible pertaining to the investment. This should however not be construed as a legal advice. You may consult with your Chartered Accountant / Tax Consultant for the same. Our aim is to make ITR filing as smooth as possible for the investor and our platform shall provide the reports required which can ease out reporting in the required section of the ITR.

The blockchain technology allows 100% transparency of every transaction that happens on the platform. However, every user on the platform will have an encoded public address, which is 40–42characters long. This protects the original identity of every individual while allowing for complete transparency and compliance.

The platform charges a fixed success fee to the asset owner for listing on the platform and a small yearly management fee to the investors on the funds invested or distributed. All the fees are transparent and informed to the user before every investment or transaction.

Post investment the investors can vote and nominate an asset manager of their choice. The platform shall also help with few suggestions when necessary but in the end decision lies with the investors and is completely transparent. A designated asset manager will then manage the property, distribute shares, making sure updates daily investor's updates, maintains the cap table and share classes through a dedicated asset management portal within the Squareshare platform.

An asset manager who's manages a property and LLP will not have sole rights to sell, re-sell or take any major decision over a property. It's legally structured in an agreement between investors and Asset manager.

Every project that is listed on the platform first completes a due diligence process and verification on the platform. Both the asset owner and the asset are vetted on the platform. Following which relevant custody of documents and contracts are executed between the asset owner and the platform. Once successful with all these processes, the asset is tokenized and listed on the platform and all the information and documents are made to the investors of the platform.

Irrespective of the due diligence done on the platform, every investment carries risk and hence, every asset owner is abide by the process of Squareshare Platform's Due diligence if they wish to sell their asset in no time by cutting off additional costs.