Commercial Lease Agreement Format & Template

What is a Commercial Lease Agreement?

When to use it

• You are renting out, or taking on rent, premises for a shop, office, clinic, showroom or warehouse.
• The landlord and tenant want a lock-in period and a fixed rent escalation schedule.
• The tenant will make fit-out changes or put up signage and the terms for that need recording.
• A bank, licensing authority or GST registration needs proof of the business address.

What you'll need

Keep these details ready — the form asks for them in this order.

How it works

1. 1

   Enter the parties and premises

   Landlord and tenant details (the business entity, not just the individual signing), and the premises with area and address.

2. 2

   Set rent, deposit and escalation

   Monthly rent, security deposit, escalation percentage and interval, and any rent-free fit-out period.

3. 3

   Agree term, lock-in and use

   Lease term, lock-in period, notice period after lock-in, permitted business use, maintenance and utilities.

4. 4

   Preview, pay and download

   Review the full draft, pay ₹750 and download.

5. 5

   Stamp, sign and register

   Pay stamp duty at your state’s rate, sign with witnesses, and register the lease with the Sub-Registrar if its term exceeds one year.

How to make it legally valid

• Stamp duty paid at your state’s rate on the lease — usually worked out on the rent and deposit for the term.
• Under the Registration Act, 1908, a lease of immovable property for more than one year (or from year to year) must be registered with the Sub-Registrar. Some states also require tenancy or leave and licence agreements to be registered or filed with a rent authority whatever their term — check the rule for your state.
• Signed by authorised signatories of each business, with a board resolution or authorisation where the party is a company.
• GST: where the landlord is GST-registered, GST is generally charged on commercial rent — state in the agreement whether the rent includes or excludes it.

Stamp paper. Stamp duty on commercial leases is set by each state and usually rises with the term and total rent. Confirm the amount with the Sub-Registrar or your state’s e-stamping portal before execution.

Common mistakes to avoid

• Leaving a multi-year lease unregistered — it may not be admissible as evidence of the lease terms in a dispute.
• Not stating whether the rent includes GST, maintenance and property tax.
• An unclear lock-in clause that doesn’t say what happens if either side exits early.
• Signing in an individual’s name when the tenant is actually a company or firm.