Kaagazaat

Industrial Shed Leave and Licence Agreement

At a glance

Price: Free, always.
Stamp duty: A leave and licence of this kind is a written agreement and attracts stamp duty as an agreement or, if it is treated as a lease, as a lease.
Registration: A licence is not ordinarily registered.
Witnesses: Not required, but two witnesses are advisable for the evidence, and the template carries lines for them.

Free

Free, always.

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Also called

Industrial Shed Leave and Licence
Factory Shed Licence Agreement
Industrial Unit Licence
Shed Rent Agreement
Factory Shed Use Agreement
Short-Term Industrial Shed Licence
Industrial Premises Licence Agreement

When you need it

Use this when the owner of an industrial shed, factory unit or godown lets a business use it for a short period, usually up to about a year, without creating a tenancy. It records the shed and the permitted activity, working hours, the term and lock-in, the licence fee and deposit, electricity and water, what hazardous materials are not allowed, who holds the factory, pollution and labour licences, insurance, alterations, and what happens at the end, including if the Licensee overstays.

It is a licence, not a lease: the Licensor keeps possession, and the Licensee has only permission to use. That is why it is for a short, defined period. Not for: a long industrial lease with a registered deed (a commercial or industrial lease deed); a warehouse for storage only (a warehousing agreement); or a plot of land with no building. Before signing, check that the plot or allotment conditions permit the activity and a licensee in the shed, walk through the shed and sign a handover note recording its condition, and confirm the electrical load the Licensee needs.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A leave and licence of this kind is a written agreement and attracts stamp duty as an agreement or, if it is treated as a lease, as a lease. The class and the amount depend on the term, the fee and the deposit under the State of Punjab or Chandigarh Administration rules. Check the current figure with the Sub-Registrar or Collector of Stamps before signing, and buy the stamp paper before the Agreement is signed.

Registration

A licence is not ordinarily registered. If the arrangement is treated as a lease for a year or more, it must be registered. Keep the term under a year, do not give the Licensee exclusive possession, and ask a lawyer if you intend to extend the term repeatedly.

Notarisation

Not required for validity. Many parties have their signatures notarised for extra comfort, which is a choice and not a condition.

Witnesses

Not required, but two witnesses are advisable for the evidence, and the template carries lines for them.

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Sample preview — placeholder answers, not your data

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INDUSTRIAL SHED LEAVE AND LICENCE AGREEMENT

This Industrial Shed Leave and Licence Agreement (this "Agreement") is made at Chandigarh on 2 April 2026.

BETWEEN

Gill Industrial Estates Private Limited, an individual, of SCO 11, Sector 8-C, Chandigarh 160009, acting through Ravneet Chadha (the "Licensor")

AND

Sandhu Auto Components, an individual, of SCO 11, Sector 8-C, Chandigarh 160009, acting through Ravneet Chadha (the "Licensee")

The Licensor and the Licensee are each a "Party" and together the "Parties".

RECITALS

A. The Licensor owns, or is entitled to license the use of, the industrial shed described below.

B. The Licensee wishes to use the shed for a short period for its business, and the Licensor has agreed to permit that on the terms of this Agreement.

NOW THIS AGREEMENT WITNESSES as follows.

1. THE LICENCE

1.1 The Licensor gives the Licensee leave and licence, for the term, to use Shed No. 14, Industrial Focal Point, Phase VIII, Mohali, with the open yard in front and the attached office room, of about 5,000 square feet, at Mohali, in the State of Punjab (the "Shed"), only to carry on machining and assembly of auto components, with storage of raw material and finished goods.

1.2 This is a personal licence to use the Shed. It is not a lease, tenancy or transfer of any interest in the land or building. The Licensor keeps legal possession and control of the Shed and may enter it at reasonable times, on notice except in an emergency, to inspect, repair or check compliance. The Licensee shall not part with possession of the Shed, sub-license it or share it with anyone else.

1.3 The Licensor confirms that it owns the Shed or holds the right to license it, that the land use and industrial plot or allotment conditions allow the permitted activity, and that nothing in any lease, loan or allotment stops this licence. The Licensor shall hand over the Shed in a condition fit for that use, and shall record its condition and the fittings in a short handover note signed by both Parties on the start date.

2. TERM AND LOCK-IN

2.1 The licence runs for 11 months from 1 April 2026, unless ended earlier under this Agreement. It ends on the last day of the term without further notice. It may be extended only by a new written agreement, and the Licensee has no right to continue after the term.

2.2 For the first 3 months (the "Lock-in") neither Party may end this Agreement for convenience. If the Licensee leaves during the Lock-in, it shall still pay the licence fee for the rest of the Lock-in. After the Lock-in either Party may end this Agreement on 60 days' written notice.

3. FEE, DEPOSIT AND CHARGES

3.1 The Licensee shall pay the Licensor a licence fee of ₹85,000 (Rupees Eighty Five Thousand only) a month, in advance, by the 5th day of each month, against a tax invoice. The fee is exclusive of GST, which the Licensee shall pay in addition at the rate in force.

Questions about this document

Does the Industrial Shed Leave and Licence Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

A leave and licence of this kind is a written agreement and attracts stamp duty as an agreement or, if it is treated as a lease, as a lease.

See the full position on stamp duty, registration and witnesses

Does the Industrial Shed Leave and Licence Agreement need registration in Punjab and Chandigarh?

A licence is not ordinarily registered.

See the full position on stamp duty, registration and witnesses

What does the Industrial Shed Leave and Licence Agreement cost on Kaagazaat?

Free, always.

Does the Industrial Shed Leave and Licence Agreement need witnesses?

Not required, but two witnesses are advisable for the evidence, and the template carries lines for them.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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