Create Commercial Rent Agreement Online in India

What is a Commercial Rental Agreement?

A commercial rental agreement is a legal contract between a landlord and a tenant who wants to rent a space for business purposes- like a shop, office, warehouse, or factory.

Types of Property Under Commercial Rent Agreements

Category of commercial agreement which DigiLawyer makes

1. Shops – Most suitable for retail businesses like clothing, electronics, or grocery stores, where the tenant needs direct customer access and high footfall.
2. Offices – Ideal for professionals or companies looking for a dedicated workspace, often with shared amenities like reception, parking, and meeting rooms.
3. Industrial Property – Best for manufacturing, production, or heavy-duty industrial activities, with facilities for machinery installation and compliance with safety regulations.
4. Institutional Property – Suitable for schools, hospitals, clinics, or other institutional setups, usually requiring compliance with specializing infrastructure standards.
5. Warehouses/Godowns – Perfect for storage, logistics, or inventory management, with a focus on storage capacity, safety measures, and accessibility.
6. Building – Suitable for multi-tenant use or a single business occupying the entire property, with shared areas, structural maintenance, and fire safety compliance.
7. Restaurants – Best for food and beverage businesses, requiring proper kitchen setup, hygiene standards, licenses, and amenities for customer service.

How DigiLawyer Can Draft Your Commercial Agreement Online?

At DigiLawyer, we make renting easy by providing legally valid and hassle-free rental agreements. Our experts ensure that every agreement follows Indian rental laws, protecting both landlords and tenants. With a quick online process, fair pricing, and legally verified documents, we help you avoid disputes and rent with confidence.

Create Rental Agreements for Any Commercial Property Type

People looking for a rental agreement search by the use or the type of the property they are renting. Usually, the key clauses remain the same, but we have listed some key additions you can make in commercial deed for warehouses, industrial property, or offices. Best thing is DigiLawyer’s expert lawyer will consult you properly in which clause to add in your agreement to add value.

All of the above can be handled entirely online through DigiLawyer’s platform, in a lawyer-drafted format, available as a PDF for instant download or physical delivery.

Looking to rent a home instead of a commercial space? You can create residential rental agreement online here

How to Draft Your Agreement Online and Offline

Clauses Covered in Rent Agreement for Commercial Spaces

Core Clauses

1. Parties Involved: Clearly identifies both the landlord (lessor) and tenant (lessee) by including

• Full legal names
• Permanent addresses
• Valid contact details
• Identity proof (e.g., Aadhaar, PAN, Passport)

2. Property Description: This specifies type of rented premises (shop, gym, office) with postal address and pin code and any common areas (parking space, terrace, etc.) if included in the property.

3. Permitted Usage: Defines that the property can be used for the agreed only commercial purpose and mentions the prohibition of unauthorized and illegal activities on the rented property.

4. Duration (Term) of Tenancy

This clause specifies Start and end date of the tenancy.

• Option for renewing lease
• Terms for lease extension, including any changes in rent.

5. Rent Details: This clause ensures clarity on financial commitments like amount of rent, due date of payment, mode of payment, annual increments or penalties due to late payments.

6. Security Deposit: This clause specifies the amount to be paid as security and the conditions for refund of the security amount.

7. Maintenance and Repairs: This clause outlines the responsibilities of both parties for maintenance and repairs of the property.

8. Utility Bills: This section clearly specifies which party is responsible for payment of utility bills. Eg: electricity, water, gas, and internet.

9. Lock-in Period: It defines the minimum period for which the agreement cannot be terminated.

10. Notice Period for Termination: This clause requires the tenant and landlord are required to provide a notice of 30-60 days before ending the lease.

11. Rights of Entry: The landlord has the right to inspect the property but only after giving 24-48 hours prior notice.

12. Subletting Clause: This mentions if the tenant is allowed to rent the property to a third party

13. Modifications: This clause prevents any sort of modification without the landlord’s approval and specifies that any modification needs to be brought to the landlord’s notice.

Expert opinion

We are giving you additional clause you can add in the agreement to make it stronger

1. Restrictions : This includes rules such as no illegal activities, no disturbance, and compliance with society's rules.

2. Alterations and Modifications : This prevents the tenant from making any structural changes without the landlord’s approval.

3. Indemnity Clause : This ensures that both parties are responsible for their actions and protect each other from legal claims or damages.

4. Dispute Resolution : This explains that disputes should first be resolved mutually, followed by mediation or legal action if required.

5. Registration : This ensures that the agreement is legally valid by stating the need for registration and payment of stamp duty.

6. Compliance with Laws and Licenses : The tenant must get all required licenses and approvals. All business activities must follow zoning, safety, and legal rules. The landlord is not responsible for any violations by the tenant.

7. Property Tax and Commercial Charges : The agreement clearly states who pays property tax. It also covers extra commercial charges and shared costs like maintenance and society fees.

8. Business Hours : Defines allowed working hours. The tenant must follow timing rules, including limits on noise, holidays, and restricted hours.

9. Fire and Safety Compliance : The tenant must maintain safety equipment like fire extinguishers and alarms. The landlord ensures the building meets safety norms. Both must follow fire department rules.

10. Insurance : Specifies who will take insurance. It should cover property damage, fire, theft, and third-party risks. Both parties must keep policies active and share copies.

11. CAM (Common Area Maintenance) Charges : The tenant pays a share of maintenance costs for common areas like lifts, security, and cleaning. Payment terms and revisions are defined.

12. Work Clause : The tenant can do interior work with landlord approval. Structural changes are not allowed without permission. The property must be returned in its original condition at the end of the lease.

Importance of Drafting a Commercial Rent Agreement

Pre- Signing Checklist For Tenants and Landlords

Commercial Rent Agreement for Business Address & Compliance Proof

If you are running a business from a rented commercial property, a commercial Rent Agreement acts as important proof for GST registration, Shop & Establishment registration, MSME registration, bank current account opening, and business KYC verification. Your agreement should clearly mention the business name, tenant and landlord details, commercial property address, monthly rent amount, security deposit, and duration of tenancy. In many cases, authorities and banks may also ask for the property owner's PAN card, NOC, or utility bill for address verification and compliance purposes.

Know the Law

If you are signing a new rent agreement online or renewing an existing one, here is what has changed and what it means for you.

• Digital stamping is now the preferred method for executing rental contracts in most states. Physical stamp paper continues in states like Maharashtra and West Bengal where e-stamping is not yet fully adopted.
• Security deposit for residential properties is capped at a maximum of two months' rent under the Model Tenancy Act guidelines adopted by several states. Commercial agreements may have different caps.
• Rent can only be revised after 12 months of tenancy, and only after a written notice of at least 90 days is served by the landlord.
• Landlords must give a minimum of 24 hours' written notice before entering or inspecting a rented property, except in genuine emergencies.
• Eviction can only happen through a Rent Tribunal in order on legally specified grounds such as non-payment of rent or misuse of property. Landlords cannot ask tenants to vacate without following this process. To know more on this, consult our expert property lawyers .
• Verbal agreements are no longer considered adequate proof of tenancy. A written, stamped rental agreement for home is the minimum standard.

DigiLawyer's agreements are drafted to comply with the latest rules, including the Model Tenancy Act, 2021 guidelines and the 2025 rental reforms, which were adopted across multiple states. Which means if you need e-signing and e-stamp as the bare minimum our services would come in handy.