Commercial Lease Agreement
Lease shops, offices and warehouses on solid paper — commercial leases with fit-out, escalation and exit terms done right.
- Capex Protected
- Escalation Engineered
- Registered & Enforceable
What is Commercial Lease Agreement?
Commercial leases carry stakes residential agreements never see: fit-out investments, lock-ins matched to capex recovery, CAM charges, signage and licence-to-use terms, GST on rent, and exit clauses that can strand a business or a property. The lease is a business document — and must be negotiated like one.
Taxwapsi drafts commercial leases for landlords and tenants: rent and escalation structure, security deposit and bank-guarantee options, lock-in symmetry, fit-out and reinstatement obligations, maintenance/CAM transparency, permitted use and exclusivity, assignment/sublease rights and termination architecture.
Long-term commercial leases (12+ months) must be registered to be enforceable — we manage stamping and Sub-Registrar registration, and structure leave-and-licence alternatives where that route fits better (common in Maharashtra).
Expert Pro Tip
Match your lock-in to your fit-out recovery period — a tenant investing ₹20 lakh in interiors with a 1-year lock-in can be asked to vacate before recovering a rupee. Lock-in symmetry is the most negotiated clause for good reason.
Choose Your Package
Transparent pricing — professional fee shown, government fees extra where noted.
Starter
Standard commercial lease/licence (up to 11 months).
+ Stamp Duty
Get StartedWhat you'll get
- Lawyer-drafted lease
- CAM & outgoings clauses
- GST/TDS payment mechanics
- 2 rounds of revisions
- Stamping guidance
Standard
Negotiated long-term lease with registration.
+ Stamp Duty & Registration
Get StartedWhat you'll get
- Everything in Starter
- 3–9 year lease architecture
- Lock-in & escalation negotiation
- Fit-out & reinstatement schedule
- Sub-Registrar registration support
Pro
Anchor/retail-grade lease with full support.
+ Stamp Duty & Registration
Get StartedWhat you'll get
- Everything in Standard
- Counterparty redline negotiation rounds
- Exclusivity & signage clauses
- Bank-guarantee deposit structuring
- Renewal & exit option architecture
- Dedicated property lawyer
* Timelines depend on government processing. T&C apply.
Benefits of Commercial Lease Agreement
Capex Protected
Lock-in, fit-out ownership and reinstatement clauses aligned to your investment recovery.
Escalation Engineered
Stepped or indexed escalation (typically 15% per 3 years) documented without ambiguity.
Registered & Enforceable
12+ month leases registered properly — unregistered long leases fail exactly when disputes start.
CAM & Outgoings Transparent
Maintenance, property tax, insurance and CAM responsibilities split explicitly.
Business Continuity Clauses
Assignment on company restructuring, subleasing rights and renewal options that protect operations.
GST Treated Correctly
GST on commercial rent (18%) and TDS u/s 194-I mechanics built into payment clauses.
How It Works — Step by Step
- 1
Deal & Property ReviewDay 1
Commercial terms, property documents and party positions mapped.
- 2
Lease DraftingDay 2–3
Full lease (or leave-and-licence) drafted with negotiated architecture.
- 3
Review & Negotiation SupportDay 4
Revisions through landlord-tenant rounds (2 rounds included).
- 4
Stamping & RegistrationDay 5–6
State stamp duty computed; Sub-Registrar registration completed for 12+ month terms.
Documents Required
Prepare your documents in the order below — start with Document 1 and move down the list.
Party & Property Documents
- 1
Ownership ProofRequired
Sale deed/index II/property tax receipts of the premises.
- 2
Party KYC & Entity DocumentsRequired
PAN/Aadhaar, COI and board authorisation for companies.
- 3
Society/Authority NOCIf applicable
Where the building requires consent for commercial use.
Commercial Terms
- 4
Term Sheet of the DealRequired
Rent, deposit, term, lock-in, escalation, CAM, fit-out.
- 5
Permitted Use DescriptionRequired
Business activity — drives zoning, licence and exclusivity clauses.
Frequently Asked Questions
Lease vs leave-and-licence — which should we use?
A lease transfers an interest in the property (stronger tenant protection, mandatory registration beyond 11 months); leave-and-licence grants permission to use without property interest (favoured by Maharashtra landlords, with its own mandatory registration there). Tax, eviction and stamp treatment differ — we recommend per state and bargaining position.
Is registration mandatory for commercial leases?
Yes for terms of 12 months or more — an unregistered long lease cannot be received as evidence of its terms (Section 49, Registration Act). Given commercial stakes, we register virtually all leases we draft beyond 11 months; in Maharashtra, leave-and-licence agreements require registration regardless of term.
What lock-in is reasonable?
Tenant-side: long enough to recover fit-out (3 years is common for serious capex). Landlord-side: matching lock-in protects against vacancy. Asymmetric lock-ins (tenant locked, landlord free) are the classic one-sided draft we negotiate out. Breach consequences (rent for unexpired lock-in) must be express.
Who pays GST and TDS on commercial rent?
Commercial rent attracts 18% GST (landlord charges it if GST-registered); tenant businesses deduct TDS at 10% u/s 194-I beyond ₹2.4 lakh/year (now linked to monthly thresholds per recent amendments). The lease should state amounts as exclusive/inclusive explicitly — silence creates 18% disputes.
What are CAM charges and how do we control them?
Common Area Maintenance — security, housekeeping, lifts, common utilities. Control comes from the lease: defined inclusions, per-sq-ft rates or audited actuals, escalation caps and statement rights. Open-ended "as decided by landlord" CAM clauses are negotiated to defined structures in our drafts.
Who owns the fit-out at exit?
The lease decides: removable fixtures typically go with the tenant; civil improvements merge with the property; reinstatement ("bare shell return") obligations must be express or exit becomes a renovation dispute. Photographic handover condition records are built into our annexures.
Can the tenant assign or sublease?
Only as the lease permits. Businesses should secure assignment rights for group restructuring/franchisees with landlord consent not to be unreasonably withheld; landlords legitimately control stranger substitution. The middle path is drafted, not assumed.
What stamp duty applies to commercial leases?
State-specific and term-linked — e.g. Maharashtra leases attract duty on a formula over rent + deposit for the term; Delhi/Karnataka/UP have their own slabs rising with tenure. Under-stamping risks penalty up to 10x the deficit — we compute it correctly the first time.
What Our Clients Say
4.6/5(2,000+ reviews)Rent agreement drafted, stamped and signed without me and the tenant ever meeting. The fixture annexure idea alone saved a deposit dispute later.
My Pvt Ltd was registered in 12 days flat. Every step explained, pricing exactly as quoted, and the post-incorporation kit covered everything. Highly recommended.
Our trademark got objected and we were clueless. Their IP attorney drafted a brilliant reply — mark accepted and published within months.
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