Tenancy Agreement Format for Shop Rent in India

Simple and Legally Valid Rental Agreement Template for Business Purposes in India

Looking for a legally sound and ready-to-use tenancy agreement format? This blog post provides a detailed and updated draft of a shop rent agreement suitable for business premises in India. Whether you're a landlord or a tenant, use this 2025 tenancy agreement template to ensure your rental deal is clear, fair, and legally binding. Copy and customize it as per your needs.

Read Also: II Tenancy Agreement Format for House Rent in India II

AGREEMENT OF TENANCY

This TENANCY AGREEMENT is made on this the [DAY] day of [MONTH], [YEAR].

BETWEEN

[NAME OF THE LANDLORD] son of [FATHER'S NAME OF LNDLORD] by religion [___], a resident of [FULL ADDRESS OF THE LANDLORD], hereinafter called the FIRST PARTY (which expression unless repugnant to the present context shall mean and include his heirs, legal representative, successors or assign) of the ONE PART;

AND

[NAME OF THE TENANT], son of [FATHER'S NAME OF TENANT], by religion [____], presently residing at [FULL ADRESS OF THE TNANT], hereinafter called the SECOND PARTY (which expression unless repugnant to the present context shall mean and include his heirs, legal representative, successors or assign) of the OTHER PART;

WHEREAS the FIRST PARTY has a shop premises measuring 7.5 sq. ft. x 34” sq. ft, situated at [LOCATION OF RENTAL PREMISES], Mouza: __________ and District: [_____], [STATE], under Dag No. [___] and P.P. No. [_____].

AND WHEREAS the SECOND PARTY being in need of a shop premises for his business purpose and as such approached the FIRST PARTY to take his aforesaid shop on a monthly rental basis on the terms and conditions appearing herein below: - 

NOW THIS AGREEMENT OF DEED WITNESSES AS FOLLOWS:

1. That in pursuance of the aforesaid negotiations and for a consideration of Rs. [AMOUNT OF RENT IN NUMBER]/- (Rupees [IN WORDS]) only, being the monthly rent of the afore-said shop premises the FIRST PARTY demise unto the SECOND PARTY the same as fully detailed in the schedule below to hold the same by the SECOND PARTY for his business purpose only;
2. That this Deed of Agreement is deemed to have been commenced from [e.g. 1st day of July, [YEAR] and shall remain in force for a period of Eleven Months and it may be renewed on mutual consent by incorporating fresh terms and conditions and monthly rent, etc.
3. That, the SECOND PARTY shall pay the monthly rent of Rs. [AMOUNT OF RENT IN NUMBER]/- (Rupees [IN WORDS]) only, to the FIRST PARTY within the 1st week of each succeeding English Calendar month without fail.
4. That, the SECOND PARTY shall use the premises only for his business purpose. That, the SECOND PARTY shall not sublet the aforesaid premises and also not erect or alter the premises without the prior consent of the FIRST PARTY.
5. That, this Agreement may be determined by either of the parties by giving three-month prior notice to the other party.
6. That the electricity connection shall remain in the name of the FIRST PARTY and the SECOND PARTY shall be entitled to use the same for his business purpose and the electricity consumption bill shall be paid by both the parties equally.
7. That, the SECOND PARTY agrees not to stock or store any explosive goods or articles which are likely to cause damage to the premises.
8. That the SECOND PARTY shall not cause any nuisance or annoyance to the occupier of the adjoining or neighbor shopkeepers.
9. That the SECOND PARTY hereby agrees in all things to be subject to the reasonable order and directions of the FIRST PARTY, and the FIRST PARTY or his representatives shall be entitled to enter and view and inspect the state and conditions of the shop premises at all reasonable times.
10. That, the SECOND PARTY agrees to keep the premises clean and in habitable condition, and shall not block, close, or obstruct the Road or Path or any space in front of the premises by keeping or stocking any articles, rubbishes, etc.
11. That the SECOND PARTY paying the rents regularly and performing the several covenants herein on his part contained, shall peacefully hold and enjoy the demised premises without any unlawful interruption by the FIRST PARTY or any other person rightfully claiming under him or in trust until tenancy is determined.
12. That in case of non-payment of monthly rent, and/or on breach of any of the covenants on the Tenant’s part hereinbefore contained, it shall be lawful for the FIRST PARTY at any time thereafter, to re-enter upon the demised premises or any part of it in the name of the whole, without notice and thereupon this tenancy shall absolutely determine; but without prejudice to the right of action of the FIRST PARTY in respect of any breach of the Tenant’s covenant herein contained.
13. That this tenancy can be renewed after the expiry of 11 months on the mutual understanding of both parties or by incorporating fresh terms and conditions not entered into then the tenancy shall be deemed to be determined.

Read Also: II 10 Rights Every Landlord and Tenant Must Know Before Renting a House II

SCHEDULE OF THE DEMISE PREMISES

A shop premises measuring 7.5 sq. ft. x 34” sq. ft, situated at [LOCATION OF RENTAL PREMISES], Mouza: __________ and District: [_____], [STATE], under Dag No. [___] and P.P. No. [_____], and the same is bounded as follows:

DIRECTION BOUNDARY

• North Land of Dag No. [____]
• South Land of Dag No. [____]
• East Land of [__________]
• West Road

In witness whereof the parties hereunto have set and subscribed their respective hands on the day, month, and year first above written in the presence of the witnesses.

______________________________

SIGNATURE OF THE FIRST PARTY

 

___________________________

SIGNATURE OF THE SECOND PARTY 

Drafted by: -

(Name of the Advocate)

I hope this tenancy agreement format helps you create a clear and secure rental arrangement. Always remember to review and customize the terms as per your specific needs and consult a legal expert if required. Thank you for visiting, feel free to share this resource with others who might find it helpful!