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Office Leave and Licence Agreement

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Price
₹1,499 · GST included

₹1,499

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • Leave and Licence Agreement
  • L&L Agreement
  • Office Licence Agreement
  • Licence to Occupy Office Premises
  • Coworking Space Agreement
  • Managed Office Agreement
  • Serviced Office Licence
  • Business Centre Agreement

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
Why you need it

When you need it

For a business taking office space — cabin, suite, coworking, part of a floor — where the owner grants occupancy permission rather than an interest. A s.52 Easements Act licence leaving possession with the licensor. Substance decides it: a lockable, entry-controlled space the licensor never enters reads as a lease however titled. Drafted as a genuine licence: named area, unrestricted access, no exclusive possession. Not for residential premises; retail/showroom space; warehousing/industrial units; a long secured term or mortgageable space; occupiers needing genuine exclusive possession (need a registered lease); or virtual-office arrangements with no space licensed.

See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

Ad valorem and formula-driven. Maharashtra Article 36A: a percentage of aggregate licence fee for the term plus non-refundable deposit plus notional interest (10% p.a.) on the refundable deposit, different slab beyond sixty months. Most states charge it as a lease (Article 35/36) on rent/term/premium — a deposit read as premium moves duty sharply. Verify the current article/rate.

Registration

A true licence transfers no interest, so s.17(1)(d) doesn't catch it by itself — the risk is recharacterisation: a court finding exclusive possession and a lease over a year makes it inadmissible (s.49). Maharashtra's exception: s.55 requires every leave and licence registered whatever its duration, duty on the licensor, and without registration the licensee's version of terms prevails unless disproved. Lodge within four months (s.23), four more with penalty (s.25).

Notarisation

Not required, not a substitute — authenticates signatures only, curing neither stamp duty nor a registration failure; a notarised-but-unregistered Maharashtra agreement still exposes the licensor under s.55. Notarise only if not being registered, as an evidentiary step.

Witnesses

Two adult witnesses, not parties, full name/address/ID. For registration, both executants (or an attorney under a registered POA) appear with photographs/thumb impressions/PAN/Aadhaar. Companies carry board resolution, incorporation certificate, signatory ID.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

OFFICE LEAVE AND LICENCE AGREEMENT

This Leave and Licence Agreement ("Agreement") is made at Pune on 1 April 2026.

BETWEEN

Ashwin Realty Holdings Private Limited, an individual, having its address at X, PAN AABCA1234E, GSTIN X, acting through X, duly authorised (the "Licensor", which expression includes its successors and permitted assigns);

AND

Northline Analytics Private Limited, an individual, having its address at X, PAN AAECN5678K, GSTIN X, acting through X, duly authorised (the "Licensee", which expression includes its successors and permitted assigns).

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

RECITALS

A. The Licensor is the absolute owner of, and in lawful possession of, the office premises described in the Schedule (the "Premises").

B. The Licensee has requested permission to use a designated part of the Premises for its office use, on a non-exclusive basis and without any transfer of interest in the Premises.

C. The Licensor is willing to grant that permission by way of leave and licence within the meaning of section 52 of the Indian Easements Act, 1882, on the terms set out below.

D. The Parties intend this Agreement to operate as a licence and not as a lease. No interest in immovable property is transferred, and legal possession of the Premises remains with the Licensor throughout.

NOW IT IS AGREED:

  1. GRANT OF LICENCE

1.1 The Licensor grants the Licensee a bare, non-exclusive and non-transferable licence, revocable only in accordance with clause 5, to enter upon and use the space described in the Schedule (the "Licensed Space") for the Permitted Use during the Term, together with the right to use the common areas, facilities and services of the Premises in common with the Licensor and its other licensees.

1.2 This licence is personal to the Licensee. It confers no tenancy, sub-tenancy, right of exclusive possession, easement or any other right, title or interest in the Premises or the Licensed Space, and nothing in this Agreement shall be construed as a demise or as a transfer of an interest under the Transfer of Property Act, 1882.

1.3 Legal possession and control of the whole of the Premises, including the Licensed Space, remain with the Licensor at all times. The Licensee has permission to use the Licensed Space only, and the grant of that permission is not a delivery of possession.

1.4 The Licensee shall not claim, and shall not permit any person claiming through it to claim, the benefit of any rent control or tenancy protection law in respect of the Licensed Space.

  1. PERMITTED USE AND ACCESS

2.1 The Licensee shall use the Licensed Space only for the following purpose: back-office software development and administrative work, with no client-facing retail activity (the "Permitted Use"), and for no other purpose.

2.2 The Licensee and its personnel and invitees may access the Licensed Space during the following hours: 24 hours a day, on all days of the week, subject to the security, access-control and house rules of the Premises notified by the Licensor from time to time.

The number of persons the Licensee may station in the Licensed Space at any time shall not exceed 25,000.

The Licensor shall make available to the Licensee 25,000 car parking slot(s) within the Premises, on an unreserved basis, during the Term.

2.3 The Licensee shall not carry on any manufacturing, storage of hazardous or inflammable goods, retail sale to walk-in customers, or any activity that is unlawful, causes a nuisance, or breaches the occupancy certificate, fire clearance or building rules applicable to the Premises.

2.4 The Licensor consents to the Licensee using the address of the Licensed Space as its registered office or additional place of business under the Companies Act, 2013 and the goods and services tax laws during the Term, and shall furnish a no-objection certificate and a copy of a utility bill on request.

  1. SERVICES AND UPKEEP

3.1 The Licensor shall, during the Term, keep the Premises and the common areas in reasonable repair and shall provide the building services customarily provided at the Premises, including security, housekeeping of common areas, water supply, lifts, and power supply up to the point of the Licensed Space.

The Licence Fee also includes the following services: reception and mail handling, daily housekeeping of the Licensed Space, 100 Mbps shared internet, 8 hours of meeting room use per month, tea and coffee.

3.2 The Licensor shall use reasonable efforts to maintain continuity of services but shall not be liable for interruption caused by matters beyond its reasonable control, by failure of statutory supply, or by repairs of which reasonable prior intimation is given.

  1. TERM

4.1 This licence commences on 2 April 2026 (the "Commencement Date") and continues for 36 months (the "Term"), unless terminated earlier in accordance with this Agreement or extended under clause 14.

4.2 The Licensee shall not be entitled to remain in the Licensed Space after expiry or earlier termination of the Term except under a fresh written agreement.

  1. LOCK-IN, NOTICE AND TERMINATION

5.1 Subject to any lock-in period agreed in this Agreement, either Party may terminate this Agreement for convenience by giving the other 3 months' prior written notice, or by paying the Licence Fee for the unexpired part of the notice period in lieu of notice.

Lock-in: neither Party may terminate this Agreement for convenience during the first 25,000 months from the Commencement Date. If within that period the Licensee terminates for convenience or vacates the Licensed Space, or the Licensor terminates for the Licensee's breach, the Licensee shall pay the Licence Fee for the unexpired part of the lock-in period, and the Licensor may appropriate the Security Deposit towards it. If within that period the Licensor terminates otherwise than for the Licensee's breach, the Licensor shall refund the Security Deposit in full and pay the Licensee an amount equal to the Licence Fee for the unexpired part of the lock-in period. This paragraph does not apply where the Licensee terminates under clause 5.3, or where either Party terminates under clause 19.2; in either of those cases no lock-in compensation is payable by the Licensee, the Licensor shall not appropriate the Security Deposit towards any such compensation, and the Security Deposit shall be refunded in accordance with clause 8.3.

5.2 The Licensor may terminate this Agreement with immediate effect by written notice if the Licensee (a) fails to pay any amount due within fifteen days of written demand; (b) commits a material breach that is not remedied within fifteen days of written notice; (c) uses the Licensed Space for anything other than the Permitted Use; or (d) becomes subject to insolvency or winding-up proceedings that are not withdrawn or stayed within sixty days.

5.3 The Licensee may terminate this Agreement with immediate effect by written notice if the Licensed Space is not made available, or ceases to be usable for the Permitted Use, for a continuous period of thirty days for reasons attributable to the Licensor.

5.4 Termination does not affect rights or liabilities that have already accrued.

  1. LICENCE FEE

6.1 The Licensee shall pay the Licensor a licence fee of ₹25,000 (Rupees Twenty Five Thousand only) per month (the "Licence Fee"), in advance, on or before day 5 of each calendar month, without set-off or deduction save as required by law. The Licence Fee for part of a month shall be apportioned on a daily basis.

6.2 Payment shall be made by electronic transfer to the bank account notified by the Licensor in writing.

What this document is for

A business taking office space — a private cabin, a serviced suite, a few seats on a shared floor, or an independent unit — uses this when the owner, or an operator running the building, is willing to grant only a personal permission to use the space rather than a lease. Legal possession of the office stays with the licensor throughout; the licensee gets the right to occupy and work there, not an interest in the property itself.

It fixes the licence fee and how it rises, the security deposit, which services and common-area charges are included, the access hours, whether the licensee may fit the space out, and — because a licence can be ended more easily than a lease — the notice period, any lock-in, and what the licensor can do if the licensee overstays.

Before you use this — a licence only works if it really is one

Calling this document a licence does not by itself make it one. If, in practice, the licensee gets a space with its own lock the licensor never enters, keeps out everyone else, and is not genuinely subject to being relocated, a court can hold that a lease was created regardless of what the paperwork says — under section 105 of the Transfer of Property Act, 1882 rather than the licence provision, section 52 of the Indian Easements Act, 1882, this document is written under. That changes the stamp duty, can make registration compulsory, and can bring a state rent-control law into play. Use this document only where the arrangement will genuinely be run as a licence, with the licensor keeping real access and the right to relocate — not merely labelled one to save duty or avoid registration.

Most states leave registering a licence optional, but Maharashtra does not: section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and licence of premises to be registered whatever its length, puts the cost on the licensor, and — if it is not registered — lets the licensee’s own version of the terms prevail unless the licensor can disprove it. Check this before treating registration as optional.

Stamp paper and registration

Stamp paper needed

Yes

Typical stamp duty — Punjab

Ask us — This template prices stamp duty by state article rather than for Punjab specifically — Maharashtra has its own leave-and-licence article (36A) and most other states charge it as a lease instead, on rent, term and any premium. It has not been localised to Punjab, so confirm the current article and rate at the Sub-Registrar before the deposit is fixed.

Typical stamp duty — Chandigarh

Ask us — Same reason as Punjab: this template has not been localised to Chandigarh, and a deposit that behaves like a premium can be taxed differently, so the figure needs confirming locally.

Registration at the Sub-Registrar

Depends — Not compulsory everywhere, because a genuine licence transfers no interest — but Maharashtra requires every leave and licence to be registered under section 55 of the Maharashtra Rent Control Act, 1999, whatever its duration, with the cost on the licensor. Elsewhere, registering is what keeps the document usable as evidence if the arrangement is later argued to be a lease. Confirm the position for the state the premises are actually in.

Notary or witnesses

No notary required — it authenticates signatures but cures neither a stamp shortfall nor a missed registration. Two adult witnesses who are not parties sign; for registration in Maharashtra, both the Licensor and Licensee, or an authorised signatory, attend with photo ID and are photographed and fingerprinted.

What you will need before you start

  • Confirmation of which state the office is in, since it decides the stamp article, the rate and the registration position
  • The licensor's basis for granting the licence — owner, a lessee whose own lease allows sub-licensing, or an operator under a management agreement
  • Both parties' PAN, and GSTIN where either is registered for GST
  • A precise description of the space — floor, cabin or seat numbers, approximate carpet area, and what furniture is provided
  • Whether the licensee wants to use the address for its registered office or a GST registration, since the licensor has to agree to that separately
  • Both witnesses' details

Common mistakes

  • Treating "licence" as a label that avoids registration and a higher duty on its own — if the licensee in fact gets exclusive, lockable possession the licensor never disturbs, a court can still read it as a lease.
  • Assuming registration is optional everywhere — in Maharashtra a leave and licence must be registered whatever its length, and skipping it shifts the burden of proving the terms onto the licensor.
  • Letting the licensee stay on and keep paying after the licence has expired without addressing it in writing — accepting rent-like payments after expiry is exactly the conduct that invites an argument a fresh tenancy was created.

Questions people ask before using this document

What actually makes this a licence rather than a lease?

Substance, not the heading on the document. A licence works only where the licensor genuinely keeps access to and control of the space — including the right to relocate the licensee — and the licensee does not get exclusive possession it can shut the licensor out of. A private, lockable cabin the licensor never actually enters, held for a long period on a large deposit, is exactly the fact pattern a court is most likely to read as a lease however this document is titled.

Does a leave and licence agreement in Maharashtra have to be registered?

Yes. Section 55 of the Maharashtra Rent Control Act, 1999 requires a leave and licence of premises to be registered whatever its duration, and puts the cost of doing so on the licensor. If it is not registered, the licensee’s own account of the terms is treated as correct unless the licensor can prove otherwise — a real practical risk, not a technicality.

Can the licensor move the licensee to a different cabin or desk during the term?

Only on the basis this agreement sets — typically prior written notice, comparable space, the same fee, and the licensor bearing the reasonable cost of the move. This right is also a strong indicator that the arrangement really is a licence rather than a lease, and it is usually the clause a licensee with real fit-out spend resists hardest.

Can the licensee use this office address to register for GST or as its registered office?

Only if the licensor agrees to it in this agreement. Where consent is given, the licensor is expected to furnish the no-objection certificate and a copy of a utility bill the Registrar or the GST office will ask for; where it is refused, the licensee cannot use the address for that purpose at all. Check which position this agreement actually records before relying on the address for a filing.

What happens if the licensee stays on after the licence ends?

The agreement fixes compensation as a multiple of the last licence fee for each month or part of a month of continued use. Be careful how any continued payment is handled once the term has ended: section 116 of the Transfer of Property Act, 1882, which deals with holding over, applies to leases and not to licences, but a licensor who simply keeps accepting rent-like payments after expiry invites the argument that a fresh tenancy was created despite what this document says.

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