• Using one Lease agreement for multiple businesses

I'm taking a three-storied house on rent What clause can I have in the agreement such that I get separate trade/ gst / other licenses for the businesses including new businesses in which I can be an owner. partner or shareholder
Asked 3 years ago in Property Law
Religion: Hindu

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10 Answers

Lease agreement should mention that you would be at liberty to apply for licence to carry on any business in the lease hold property 

Ajay Sethi
Advocate, Mumbai
97665 Answers
7905 Consultations

If you are taking premises on lease in your individual capacity lessor will not permit any company or partnership firm to carry on business in said premises 

Ajay Sethi
Advocate, Mumbai
97665 Answers
7905 Consultations

What the Municipal Authority/GST Department/IT Authority require is a simple lease agreement. Terms of lease is not their consideration. The agreement  should be registered and at least for the duration of three years. Agreement  can be in the name of partnership firm, proprietary firm or limited complaint if the company is registered with      ROC. That will serve your purpose. There has to be provision in the principal lease with regard to assignment and sub-lease and it should also be registered.

Ravi Shinde
Advocate, Hyderabad
4504 Answers
42 Consultations

Dear Sir

It is advisable that you include the provision to further lease out the property in the principle lease agreement and have it registered.

This will allow you to conduct separate trades and businesses without of future problems.

Thank you

Anik Miu
Advocate, Bangalore
10435 Answers
121 Consultations

- The lease agreement must having clauses like , The lessor will have no right to interfere and objection if the said premises will be used by the lessee for obtaining any government permission and necessary documents for running any business .

- Further , the lessor will have his right to use the said premised for running any type of business legally .

- Now, lessor will never allow sub-lease .

Mohammed Shahzad
Advocate, Delhi
14798 Answers
225 Consultations

Business licenses are primarily issued by the government to allow individuals to run businesses. It is important to note that a license which has to be issued will be based on the business requirements of a company after its registration or incorporation.

 

Lease agreement is an agreement between the tenant and the landlord, it has nothing to do with acquiring the business licence or GST registrations.

 

The clauses in the lease agreement should permit you to carry out multiple businesses in the same complex dividing them into all those floors that you have taken on rent/lease. 

T Kalaiselvan
Advocate, Vellore
87861 Answers
2366 Consultations

Your question is very vague devoid of details to enable us to give a proper opinion or suggestions to move forward.

However if you want to add the sub-lease clause in the lease agreement, the landlord should permit you to do so, without the permission of the landlord you cannot sub-lease the premises on your owner as a lessee. 

T Kalaiselvan
Advocate, Vellore
87861 Answers
2366 Consultations

Yes you can be an assignee as above

Prashant Nayak
Advocate, Mumbai
32971 Answers
211 Consultations

. You shall have to mention in the said rent agreement that you can use the building for multiple numbers of firms/Companies wherein you are either the owner/partner or Director to operate therefrom legally mentiioning the said building as the addresses of those firms/companies.

Krishna Kishore Ganguly
Advocate, Kolkata
27535 Answers
726 Consultations

In the said case you shall have to mention  that the said building shall be used by firms/companies wherein you  are the Assignees. 

Krishna Kishore Ganguly
Advocate, Kolkata
27535 Answers
726 Consultations

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