A shop lease is not a residential agreement with a different address on it. The term is usually longer, the deposit is larger, the duty is calculated differently, and there are registrations riding on the document. Read this before you sign anything.
The term is usually longer than eleven months
Commercial tenants invest in fit-out and want security of tenure, so three, five and nine year terms are common. That matters, because a lease from year to year or exceeding one year attracts compulsory registration at the sub-registrar's office — with registration fees and a different stamp duty basis. Budget for it rather than being surprised by it.
If you want to avoid registration, the term has to stay under the threshold. That is a genuine trade-off between cost and security, and it is your call, not ours.
The document has to survive scrutiny
Your lease will be read by people other than your landlord. It is commonly required for:
- GST registration — as proof of principal place of business
- Trade licence from the local authority
- FSSAI registration if you are handling food
- Shops and Establishments registration
- Bank account opening in the business name
Tell us which of these you need it for. The address, the entity name and the permitted use clause all have to line up with what those authorities expect, and a mismatch means a rejected application.
Permitted use — write it carefully
Too narrow and you cannot change your business model without a fresh agreement. Too broad and the landlord may object later. Name the actual trade, and think about whether you want room to expand into adjacent activity.
Lock-in and exit
Commercial leases usually have a lock-in, often with the deposit forfeited in part if you leave early. Equally, ask for a landlord lock-in if you are investing in fit-out — it is negotiable and frequently overlooked by tenants.
Fit-out and reinstatement
Who pays for the interiors, who owns them at the end, and whether you must restore the premises to bare shell when you leave. Reinstatement clauses have cost tenants a great deal at exit. Read that one twice.
Deposit, escalation and rent-free period
Commercial deposits are typically much larger than residential ones. Escalation — commonly a fixed percentage every few years — should be written in rather than renegotiated. A rent-free fit-out period at the start is normal and worth asking for.
What we do
We draft the lease, calculate and issue the correct e-stamp, and tell you plainly whether your term needs registration. Send us the proposed terms on WhatsApp and we will come back with the duty position before you commit to anything.
Nearest areas we cover
These are the areas closest to our counter. We serve all of south Bengaluru — see every area we cover.