PREMISES & PROPERTY

Leave and Licence Agreement (Commercial Premises)

Use when you take (or give) business premises for a short, renewable period. A licence gives only permission to use the premises, so the owner keeps possession rights. Leases from year to year or exceeding one year must be registered (Registration Act, 1908 s.17). A genuine leave and licence is generally not compulsorily registrable, except in Maharashtra where every leave and licence must be registered (Maharashtra Rent Control Act, 1999 s.55). Most parties choose 11 months to stay clearly below the threshold — check your state's rules.

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Licensor (owner) name *

Licensor descriptione.g. "an individual, aged about 52 years, PAN ABCPK1234L" or "a company incorporated under the Companies Act, 2013"

Licensor address *

Licensee (your business) *

Licensee entity type

Licensee registered address *

Licensee signatory & designation *

Premises address *

Carpet area (sq. ft.) *

Type of premises

Fixtures, fittings and parking included

Monthly licence fee (₹) *

Fee due by (day of month)

Security deposit (₹) *

Late-payment interest on deposit refund (% p.a.)

Licence start date *

Licence period (months) *

Lock-in period (months)

Fee increase on renewal (%)

Permitted use *

Society / building maintenance paid by

Termination notice (months)

Courts / seat of arbitration (city) *

Place *

Date *

Laws this relies on

Indian Easements Act, 1882 · Section 52A licence is a permission to use property; it creates no interest in the property.
Registration Act, 1908 · Section 17Leases from year to year or for more than one year must be registered.
Maharashtra Rent Control Act, 1999 · Section 55In Maharashtra, every leave and licence agreement must be in writing and registered, whatever its term.
State Stamp ActStamp duty on licences and leases is fixed by each state.

How to execute

Print on stamp paper and register it at the Sub-Registrar office within the time your state allows.

Print on stamp paper or e-stamp. Leases from year to year or exceeding one year must be registered (Registration Act, 1908 s.17). A genuine leave and licence is generally not compulsorily registrable, except in Maharashtra where every leave and licence must be registered (Maharashtra Rent Control Act, 1999 s.55). Most parties choose 11 months to stay clearly below the threshold — check your state's rules. In Maharashtra, register with the Sub-Registrar (online e-registration is available). Stamp duty and registration fees are state-specific — check your state's current rates (most states offer e-stamping). Check whether GST applies to the rent or licence fee, including whether it is payable under reverse charge by a GST-registered tenant.

Click anywhere in the letter to edit it. Changes to the form keep flowing in.

This is a general template, not legal advice. Laws, stamp duty and procedures vary by state and change over time — have a qualified advocate review it for your facts before signing or sending.