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Sub-Lease / Sub-Licence Agreement (Commercial Premises)

At a glance

Price
₹1,499 · GST included
Stamp duty
Duty is on rent, not premises value, banded by term, exactly as for a head lease — because a sub-lease is itself a "lease" within s.2(16) of the Indian Stamp Act, 1899, and a leave and licence of immovable property for a fee falls to be stamped the same way in the absence of any lower, separate article for it in the Schedule as it applies in Punjab or Chandigarh.
Registration
A SUB-LEASE granting exclusive possession is compulsorily registrable on exactly the same footing as the head lease it is carved out of — s.107 TPA/s.17(1)(d) Registration Act, 1908 for year-to-year, over-a-year, or yearly-rent lettings.
Witnesses
TPA does not require attestation of a sub-lease (s.107 needs only execution by both parties), and nothing requires attestation of a licence either, but both registering offices expect two witnesses, adults, not parties, wherever this Deed is in fact presented for registration.

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Also called

  • Sub-Lease Deed
  • Sub-Licence Agreement
  • Sub-Tenancy Agreement
  • Sub-Letting Agreement
  • Under-Lease
  • Deed of Sub-Lease
  • Leave and Licence Agreement for Sub-Letting
  • Office Sub-Lease 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

An existing commercial tenant in Punjab or Chandigarh — holding an office, shop, showroom, godown or industrial shed under its own lease — wants to let the whole or part of that space on to a further occupant, for a term that fits within what remains of its own lease. One document covers office, retail and warehouse premises alike, through a question on the type of premises and the shell condition handed over, rather than three separate forms for the same transaction. It covers both structures Indian law treats as genuinely different things, and makes you pick one rather than blurring them: a SUB-LEASE, which hands the occupant exclusive possession and a registrable interest in the land, and a LEAVE AND LICENCE, which gives only a personal permission to use the space and creates no interest at all. The choice changes whether the deed is compulsorily registrable, how the occupant can be made to leave, and what a court will actually find if the label and the facts on the ground disagree. Needs the Head Landlord's consent on record before it is signed, not assumed after: sub-letting without the head landlord's consent is very often itself a breach that puts the Sub-Lessor's own lease at risk, so this deed requires the consent, its date and who gave it to be stated, and requires a copy to be annexed. It also needs a shorter term than the Sub-Lessor's own remaining term — a sub-lease or sub-licence cannot outlive the lease it is carved out of — and this deed checks the two dates against each other rather than trusting the Term field alone. For a sub-lease creating exclusive possession, year-to-year, over a year, or at yearly rent: s.107 TPA; s.17(1)(d) Registration Act, exactly as for a head lease. Punjab: Sub-Registrar of the tehsil, via igrpunjab.gov.in. Chandigarh: Sub-Registrar, 30 Bays Building, via revenue.chd.gov.in. A leave and licence does not carry that compulsory-registration consequence, because no interest passes — see the Nature of this Deed clause and the Stamp Duty and Registration clause for what follows from each. Chandigarh is rent-controlled whatever the rent where a tenancy is created (East Punjab Urban Rent Restriction Act 1949 via the 1974 Extension Act — Vasu Dev Singh v. UoI, SC, 7 Nov 2006); a lawfully-created sub-tenancy there can attract the same protection as a direct tenancy, which is a reason of its own to think hard about the licence structure. Punjab runs the other way for non-residential premises let on/after 30 Nov 2013: s.3(2), Punjab Rent Act 1995 lets contract terms govern. Not for: a fresh letting directly from the property's owner (use the Commercial Lease Deed); a coworking seat or a desk licence with no defined, exclusive area; a residential sub-letting; bare land with no building; or a sub-letting the head lease forbids outright — no wording in this deed cures a head lease that does not permit it, and the Consent clause exists precisely so that question is answered before the deed is engrossed, not after.

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

Duty is on rent, not premises value, banded by term, exactly as for a head lease — because a sub-lease is itself a "lease" within s.2(16) of the Indian Stamp Act, 1899, and a leave and licence of immovable property for a fee falls to be stamped the same way in the absence of any lower, separate article for it in the Schedule as it applies in Punjab or Chandigarh. All figures checked 6 Sep 2026 (undated tables), carried over from the same source used for the head-lease template. PUNJAB: under one year 4% of annual rent; one-five years 8% of average rent; five-ten years 3%; ten-twenty 3% of twice it; twenty-thirty 3% of three times; thirty-99 3% of four times. Reg fee 1% (twice on the ten-twenty band), facilitation Rs 500, pasting Rs 200. The 8% one-five-year band is higher than the bands on either side of it and looks like a departmental error — confirm at the counter. E-stamp via SHCIL before execution. CHANDIGARH: up to five years 2% plus 3% on the refundable security deposit only, never advance rent (verified at the Sub-Registrar, SAS Nagar (Mohali), September 2026); five-ten 3% plus 3%; ten-twenty 3% of twice plus 3%; twenty-thirty 3% of three times plus 3%; thirty-100 3% of four times plus 3%. Reg fee 1% capped Rs 10,000 plus Rs 20 pasting. No sub-one-year band. BOTH: no family/gender concession. Under-stamping: deficiency plus penalty fall on whoever the deed names, and it is impounded until paid. Whether the registering office in fact charges a leave and licence at the same rate as a sub-lease, rather than treating it as a different instrument, is a question this template answers on the s.2(16) definition and flags for confirmation at the counter before the stamp is bought — see the Stamp Duty and Registration clause.

Registration

A SUB-LEASE granting exclusive possession is compulsorily registrable on exactly the same footing as the head lease it is carved out of — s.107 TPA/s.17(1)(d) Registration Act, 1908 for year-to-year, over-a-year, or yearly-rent lettings. Present within four months (s.23), four more on fine (s.25); inadmissible under s.49 if unregistered. A LEAVE AND LICENCE that genuinely creates no interest in immovable property is not brought within s.17(1)(d) by that section, because that section reaches leases and not licences; registering it is not compulsory on that account, though the Parties may still choose to register or notarise it for evidentiary weight, and nothing in this Deed prevents that choice. PUNJAB: Sub-Registrar of the tehsil (S.A.S. Nagar for IT City/Mohali), via igrpunjab.gov.in, photographs/Aadhaar/PAN. The same s.4, Punjab Rent Act, 1995 question that attaches to a head lease of non-residential premises attaches to a sub-tenancy of the same premises: whether s.4(2) requires the Schedule I Form at a flat Rs 1,000 fee rather than this deed's ad valorem duty. Settle it in writing at the counter before engrossing, exactly as for the head lease. CHANDIGARH: Sub-Registrar, 30 Bays Building — 12-1pm presentation, 3-5pm registration, 9-11am collection. Fee 1% capped Rs 10,000 plus Rs 20 pasting. Where the head lease is itself a Chandigarh Estate Office lease, the sub-letting may separately need that office's prior permission on top of registration of this deed — see the Head Lease clause. Deeds executed outside India for Chandigarh need Finance Department embossing.

Notarisation

Not an alternative to registration where this Deed creates a sub-lease over a year — a notarised but unregistered sub-lease of that kind still fails s.49, adds nothing where registration follows, and is normally skipped. Where this Deed creates a leave and licence that the Parties choose not to register, notarisation is a sensible, low-cost way to fix the date of execution and the terms against later dispute, though it does not itself make the document any more binding than an unnotarised one. Use the notary for surrounding papers: the board resolution or authority letter, the Head Landlord's written consent to sub-letting (or an affidavit exhibiting it), and a head-lease-residue confirmation. A POA used to execute or present this Deed needs s.33 authentication (registering officer, magistrate, or abroad: notary plus consular attestation) BEFORE execution — an unauthenticated power gets refused at the counter. Chandigarh: also needs Finance Department embossing if executed abroad.

Witnesses

TPA does not require attestation of a sub-lease (s.107 needs only execution by both parties), and nothing requires attestation of a licence either, but both registering offices expect two witnesses, adults, not parties, wherever this Deed is in fact presented for registration. Chandigarh adds a real qualification where registration is sought there: under para 127, Punjab Registration Manual, the FIRST witness must be known to the Sub-Registrar (councillor/gazetted officer/advocate in sectors; Lambardar/Sarpanch/Member Panchayat rural), both known to each other. Punjab: two identifying witnesses with photo ID, captured in NGDRS where the deed is registered there. What gates registration, where this Deed is a sub-lease requiring it, is attendance: both executants in person with photo ID/PAN, photographed, thumb impressions; a company through its authorised signatory with board resolution; an absent executant needs a s.33-authenticated POA.

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SUB-LEASE / SUB-LICENCE AGREEMENT

This Sub-Lease / Sub-Licence Agreement (this "Deed") is made at S.A.S. Nagar (Mohali) on 3 April 2026.

BETWEEN

Northline Analytics Private Limited, an individual, of Plot No. 8, Phase 8-B, Industrial Area, S.A.S. Nagar (Mohali) 160055, PAN AAECN5678L, acting through Rohit Nair, Director, authorised by board resolution dated 4 March 2026 (the "Sub-Lessor", which expression includes its successors in interest and permitted assigns);

AND

Coral Peak Consulting LLP, an individual, of SCO 41, Sector 26, Chandigarh 160019, PAN AAJFC4321M, acting through Priya Menon, Designated Partner, authorised by the LLP agreement (the "Sub-Lessee", which expression includes its successors in interest and permitted assigns).

The Sub-Lessor and the Sub-Lessee are each a "Party" and together the "Parties".

RECITALS

A. The Sub-Lessor holds the premises described in clause 4.2 under a head lease from Lease Deed dated 12 June 2021 between Bestech Business Towers Private Limited ("Head Landlord") and Northline Analytics Private Limited, registered as document no. 4412 in Book No. 1, Volume No. 2661 at pages 41-58 in the office of the Sub-Registrar, S.A.S. Nagar (Mohali), for a term of ten years from 12 June 2021 over Unit 305, Third Floor, Tower B, Bestech Business Towers, Sector 66, S.A.S. Nagar (Mohali) (the "Head Landlord"), particulars of which are: Lease Deed dated 12 June 2021 between Bestech Business Towers Private Limited ("Head Landlord") and Northline Analytics Private Limited, registered as document no. 4412 in Book No. 1, Volume No. 2661 at pages 41-58 in the office of the Sub-Registrar, S.A.S. Nagar (Mohali), for a term of ten years from 12 June 2021 over Unit 305, Third Floor, Tower B, Bestech Business Towers, Sector 66, S.A.S. Nagar (Mohali). That head lease is referred to in this Deed as the "Head Lease", and expires, or its current renewed term expires, on 6 April 2026.

B. The head lease permits the Sub-Lessor to sub-let the Sub-Let Premises without requiring the Head Landlord's further consent, and the Sub-Lessor has in any event given the Head Landlord prior written notice of this sub-letting, particulars of which are given below Particulars: Letter dated 2 February 2026 from Bestech Business Towers Private Limited, signed by its authorised signatory Mr Arvind Kalra, General Manager (Leasing), consenting to sub-letting of Unit 305 to Coral Peak Consulting LLP on the terms summarised in that letter.

C. This Deed creates a SUB-LEASE: a lease within the meaning of s.105 of the Transfer of Property Act, 1882, transferring to the Sub-Lessee the right to exclusive possession of the Sub-Let Premises for the Term, and constituting an interest in immovable property in the Sub-Lessee's favour. That is the distinction Associated Hotels of India Ltd. v. R.N. Kapoor (Supreme Court of India, 1959) draws between a lease and a licence: a lease transfers an interest and exclusive possession, a licence merely permits use without either. The Parties intend the Sub-Lessee to have that exclusive possession and shall not do anything under this Deed inconsistent with it.

D. The premises actually being sub-let under this Deed are described in Schedule I and referred to as the "Sub-Let Premises". They are situated at S.A.S. Nagar (Mohali), in the State of Punjab.

E. Three provisions of this Deed each identify the place in which the Sub-Let Premises lie — this Recital and Schedule I, the stamp duty computation in clause 24.2, and the rent statute identified in clause 26.1. The Parties confirm that they have read those three provisions together before executing this Deed and that each of them describes the same jurisdiction.

NOW THIS DEED WITNESSES as follows.

  1. DEFINITIONS

1.1 "Commencement Date" means 4 April 2026.

1.2 "Term" means the period stated in the Grant and Term clause.

1.3 "Rent" means the monthly rent or licence fee stated in the Rent clause, as escalated from time to time under this Deed.

1.4 "Rent Commencement Date" means the Commencement Date, unless a rent-free fit-out period is stated in the Rent clause, in which case it means the date stated there.

1.5 "Security Deposit" means the deposit stated in the Security Deposit clause.

1.6 Where this Deed creates a Leave and Licence under clause 2, "Sub-Lessor" also means the Licensor and "Sub-Lessee" also means the Licensee, and "sub-lease" and "sub-tenancy" are then to be read as "licence", for all purposes of this Deed; this clause does not itself decide which this Deed is, which is decided by clause 2 and, ultimately, by the substance of what the Parties actually do under it.

1.7 References to a statute are to that statute as amended or re-enacted, and include a statute as extended to the place where the Sub-Let Premises are situated. Headings do not affect interpretation. The singular includes the plural.

  1. NATURE OF THIS DEED

2.1 This Deed creates a SUB-LEASE: a lease within the meaning of s.105 of the Transfer of Property Act, 1882, transferring to the Sub-Lessee the right to exclusive possession of the Sub-Let Premises for the Term, and constituting an interest in immovable property in the Sub-Lessee's favour. That is the distinction Associated Hotels of India Ltd. v. R.N. Kapoor (Supreme Court of India, 1959) draws between a lease and a licence: a lease transfers an interest and exclusive possession, a licence merely permits use without either. The Parties intend the Sub-Lessee to have that exclusive possession and shall not do anything under this Deed inconsistent with it.

2.2 As a sub-lease transferring exclusive possession, this Deed is, where its Term exceeds one year or reserves a yearly rent, a lease within s.107 of the Transfer of Property Act, 1882 and compulsorily registrable under s.17(1)(d) of the Registration Act, 1908, on exactly the footing the head lease itself was. An unregistered sub-lease of that kind is inadmissible in evidence to prove the sub-tenancy under s.49 of that Act, save to the extent that section permits, and leaves the Sub-Lessee with a monthly tenancy at best. Stamp duty is chargeable on this Deed under the Stamp Duty and Registration clause below, on the same bands, computed on the same annual average rent basis, as apply to a head lease of the Sub-Let Premises.

  1. THE HEAD LEASE AND CONSENT TO SUB-LET

3.1 The Head Lease was executed on 1 April 2026 and expires, or its current renewed term expires, on 6 April 2026. Particulars of the Head Lease are as stated in Recital A.

3.2 The head lease permits the Sub-Lessor to sub-let the Sub-Let Premises without requiring the Head Landlord's further consent, and the Sub-Lessor has in any event given the Head Landlord prior written notice of this sub-letting, particulars of which are given below

3.3 Particulars of the Head Landlord's written consent or notice under clause 3.2: Letter dated 2 February 2026 from Bestech Business Towers Private Limited, signed by its authorised signatory Mr Arvind Kalra, General Manager (Leasing), consenting to sub-letting of Unit 305 to Coral Peak Consulting LLP on the terms summarised in that letter. Where that consent is annexed to this Deed as Annexure A, it forms part of this Deed.

3.4 The Sub-Lessor warrants that, as at the Commencement Date, the Head Lease is subsisting, is not under notice of forfeiture or termination, and that the unexpired residue of the Head Lease exceeds the Term of this Deed. The Sub-Lessor shall do nothing to bring the Head Lease to an end during the Term otherwise than by its own effluxion of time.

3.5 This Deed, and every right the Sub-Lessee has under it, is granted subject to, and subordinate to, the Head Lease and to every condition, restriction and obligation binding on the Sub-Lessor under it. Nothing in this Deed requires the Sub-Lessor to do anything the Head Lease forbids, or entitles the Sub-Lessee to anything greater than the Sub-Lessor itself holds under the Head Lease.

  1. GRANT AND TERM

4.1 The Sub-Lessor grants to the Sub-Lessee, and the Sub-Lessee takes, this Deed over the Sub-Let Premises for a term of 3 years commencing on 4 April 2026 and expiring on 5 April 2026 (the "Term"), on the terms of this Deed.

4.2 The Sub-Let Premises form part of the premises described as Unit 305, Third Floor, Tower B, Bestech Business Towers, Plot No. C-2, Sector 66, S.A.S. Nagar (Mohali), held by the Sub-Lessor under the Head Lease. The part actually comprised in this Deed is: The whole of the eastern half of Unit 305, comprising approximately 1,200 square feet, as shown hatched red on the floor plan annexed to this Deed, together with shared use of the reception, the pantry and both toilets on that floor.

4.3 The Sub-Let Premises admeasure approximately 1,200 square feet of carpet area.

Together with the Sub-Let Premises, the Sub-Lessor grants the Sub-Lessee the use of 1 car parking space(s), for the Term, at no additional charge, to the extent the Head Lease itself permits that use to be passed on.

4.4 The Sub-Lessor shall deliver possession, or in the case of a licence access, to the Sub-Lessee on the Commencement Date in the condition described in Schedule II. The Parties shall sign a joint inspection record on the Commencement Date, which shall be annexed to and form part of Schedule II.

  1. RENT

5.1 The Sub-Lessee shall pay the Sub-Lessor a monthly Rent of ₹90,000 (Rupees Ninety Thousand only) for the Sub-Let Premises, in advance, on or before day 5 of each calendar month. Rent for part of a month is payable pro rata.

5.2 Rent accrues from the Commencement Date, unless a rent-free fit-out period is stated in this clause, in which case it accrues from the Rent Commencement Date stated there.

Rent-free fit-out period: The Sub-Lessee may occupy the Sub-Let Premises from the Commencement Date to carry out its fit-out. No Rent is payable for the first 30 days from the Commencement Date, and the Rent Commencement Date is the day after that period ends.

5.3 Rent shall be paid by electronic transfer to the Sub-Lessor's bank account, the details of which are: Northline Analytics Private Limited, A/c 004455667788, HDFC Bank, Sector 66 Branch, S.A.S. Nagar, IFSC HDFC0001234, or to such other account in the Sub-Lessor's name as the Sub-Lessor notifies in writing at least fifteen days in advance.

5.4 The Rent shall increase by 5% of the then-current Rent at the end of every 12 months. Any escalation under this clause is calculated on the Rent payable immediately before the increase, is measured from the Rent Commencement Date, and takes effect from the first day of the month following completion of the relevant period.

5.5 The annual average rent reserved by this Deed, being the average yearly Rent over the whole Term after taking every escalation under clause 5.4 into account, is ₹11,34,000 (Rupees Eleven Lakh Thirty Four Thousand only). That figure is the base on which stamp duty on this Deed is computed under the Stamp Duty and Registration clause.

5.6 If Rent or any other sum due under this Deed is not paid within seven days of its due date, the Sub-Lessee shall pay interest at 12% per annum on the overdue amount from the due date until payment.

  1. SECURITY DEPOSIT

6.1 The Sub-Lessee shall pay the Sub-Lessor, on or before the Commencement Date, ₹5,40,000 (Rupees Five Lakh Forty Thousand only) as an interest-free refundable security deposit. Delivery of possession or access is conditional on receipt of the Security Deposit.

6.2 The Sub-Lessor may deduct from the Security Deposit only: unpaid Rent; unpaid maintenance, utility or other charges the Sub-Lessee owes under this Deed; the reasonable documented cost of making good damage to the Sub-Let Premises caused by the Sub-Lessee, fair wear and tear excepted; amounts payable by the Sub-Lessee on early termination under the Lock-In, Notice and Termination clause; and the reasonable documented cost of any reinstatement the Sub-Lessee was obliged to carry out under the Expiry and Reinstatement clause and did not.

6.3 The Sub-Lessor shall refund the Security Deposit, less permitted deductions supported by a written statement, within 15 days of the later of handover of vacant possession and settlement of final utility and maintenance bills.

6.4 If the refund is delayed beyond that period, the Sub-Lessor shall pay interest at 12% per annum on the unrefunded amount, and the Sub-Lessee may remain in occupation until refund, continuing to pay the Rent last payable, for no more than thirty days after the end of the refund period in clause 6.3, without that occupation being treated as holding over; the Holding Over clause applies to any occupation after that.

What this document is for

An existing business tenant in Punjab or Chandigarh — holding an office, shop, showroom or warehouse under its own lease — uses this to let the whole or part of that space on to a further occupant, for a period that fits inside what remains of its own lease. One form covers office, retail and warehouse premises, and works for either of the two ways Indian law treats a further letting: a sub-lease, which hands the new occupant exclusive possession and its own registrable interest in the space, or a leave and licence, which gives only a personal permission to use it and creates no interest at all.

It records the head landlord’s consent to the sub-letting, fixes the rent or licence fee and how it rises, the security deposit, who pays CAM and property tax, the lock-in and notice period, and what happens to this arrangement if the tenant’s own head lease itself comes to an end.

Before you use this — two choices decide everything else

The single most consequential question on this form is whether you are creating a sub-lease or a leave and licence, and the form makes you pick one rather than blur them. A sub-lease hands the occupant exclusive possession and an interest in the land, is registrable on the same footing as a head lease, and is hard to end early. A licence gives only personal permission to use the space, is not compulsorily registrable, and can be ended on notice — but only if the occupant genuinely does not get exclusive possession in fact. Handing over a key, keeping the sub-lessor out, and letting the occupant exclude everyone else does not become a licence merely because this document calls it one — a court looks at exactly that, in the way the Supreme Court did in Associated Hotels of India Ltd. v. R.N. Kapoor (1959), and reads the document for what it actually is.

This document does not assume the head landlord has consented — it requires the consent, its date and who gave it to be stated and annexed before the deed is signed. Sub-letting without that consent, where the head lease requires it, is very often itself a breach that puts the sub-lessor’s own lease at risk — and if the head lease ends for that reason, the sub-tenant’s own position ends with it. Get the consent in writing, specific to this sub-letting, before signing, not afterwards.

Stamp paper and registration

Stamp paper needed

Yes

Typical stamp duty — Punjab

Charged on the same bands as a head lease, because a sub-lease is itself a 'lease' under section 2(16) of the Indian Stamp Act, 1899: 4% of the annual rent under one year, 8% of the average rent for one to five years, 3% for five to ten years, rising further for longer terms. The one-to-five-year band of 8% is higher than the bands on either side of it and looks like a departmental error, but it is not — confirmed correct, verified at the Sub-Registrar, SAS Nagar (Mohali), September 2026, the same verification that settled the figure for a head lease of the same kind of premises.

Typical stamp duty — Chandigarh

Also banded by term — 2% of the annual average rent for a term up to five years, rising for longer terms — plus a separate 3% on the refundable security deposit alone, never on advance rent, verified at the Sub-Registrar, SAS Nagar (Mohali), September 2026. That 3% deposit charge applies at every band, on top of the rent-based duty.

Registration at the Sub-Registrar

Depends — Compulsory where this deed creates a sub-lease with exclusive possession and the term is over a year, year-to-year, or reserves a yearly rent — exactly the same trigger as a head lease, under section 107 of the Transfer of Property Act, 1882 and section 17(1)(d) of the Registration Act, 1908. Where it instead creates a genuine leave and licence, registration is not compulsory on that account, though the parties may still choose to register it for evidentiary weight. Punjab has the same open question a head lease raises — whether the Sub-Registrar should instead use the Rent Act's own Schedule I form at a flat Rs 1,000 fee — and it applies to a sub-tenancy exactly as it applies to a head lease; raise it at the counter before engrossing.

Notary or witnesses

No notary needed for the deed itself where it will be registered, though useful for the head landlord’s written consent, a board resolution, or a title or residue confirmation. Two witnesses attend registration, and Chandigarh again requires the first to fit its qualifying class — a councillor, gazetted officer or advocate in the sectors, or a Lambardar, Sarpanch or panchayat member in rural areas.

What you will need before you start

  • The head lease itself, not a summary of it — its execution date, expiry date, the use it permits, and any clause restricting sub-letting
  • The head landlord’s written consent to this specific sub-letting, or written proof the head lease already permits it without further consent
  • Whether this deed will create a sub-lease (exclusive possession) or a leave and licence (personal permission only) — the single choice the rest of the form turns on
  • A term for the sub-letting that ends before the head lease’s own expiry date, since a sub-lease or sub-licence cannot outlast the lease it is carved out of
  • The rent or licence fee, the annual average figure the stamp duty is computed on, and the security deposit
  • Which rent-law position applies — Punjab or Chandigarh, and which of that jurisdiction’s rent-law provisions govern the letting

Common mistakes

  • Signing this before the head landlord’s consent is actually in writing and annexed — sub-letting without it is often itself a breach of the head lease, and if the head lease is lost because of it, the sub-tenant’s own position is lost with it.
  • Fixing a term for the sub-letting that runs up to, or beyond, the head lease’s own expiry date — a sub-lease or sub-licence cannot validly outlast the lease it comes out of.
  • Choosing "licence" on this form to avoid registration or duty while in practice handing over a key and excluding the sub-lessor from the space — the label does not decide the question; what actually happens on the ground does.

Questions people ask before using this document

What is the difference between a sub-lease and a sub-licence, and why does this form make me choose?

A sub-lease hands the new occupant exclusive possession and an interest in the property, is registrable on the same footing as a head lease, and is hard to end early. A sub-licence gives only a personal permission to use the space, creates no interest, and can be ended on notice — but only where the occupant genuinely does not get exclusive possession. The form makes the choice explicit because Indian courts look at what actually happens on the ground, not the label chosen, and a document that says one thing while the facts show another is read for what it actually is.

Do I need the head landlord’s permission before subletting commercial premises in Punjab or Chandigarh?

Check the head lease first — some permit sub-letting outright, some require the head landlord’s prior written consent, and some are silent. Where consent is required and not obtained, the sub-letting is very often itself a breach of the head lease, which can put the sub-lessor’s own tenancy at risk. This document requires the consent position to be stated and, where consent exists, annexed, before it is signed — not assumed and dealt with later.

Is the Punjab 8% stamp duty band for a one-to-five-year sub-lease correct, or is it a mistake in the published table?

It is correct, not a table error, even though it sits above the bands on either side of it — 4% for a term under a year and 3% for five to ten years. This figure has been verified in person at the Sub-Registrar, SAS Nagar (Mohali), on the same basis as the identical band for a head lease of the same kind of premises. Budget for 8% if the sub-letting term falls in this band.

Does Chandigarh charge stamp duty on the deposit for a sub-lease or sub-licence?

Yes, separately from the rent-based duty and at every term band — a further 3% on the refundable security deposit, never on advance rent, verified at the Sub-Registrar, SAS Nagar (Mohali), September 2026. On a sizeable deposit this is a real, separate sum on top of the 2% or more charged on the annual average rent, and it is easy to under-budget by pricing only the rent side of the sub-letting.

Can the sub-tenant sublet the space again to someone else?

Only where this deed allows it, and even then it needs consent at two levels rather than one — the sub-lessor’s, and in turn the head landlord’s, where the head lease itself requires that consent to travel further. A further sub-letting out of a sub-lease is uncommon in practice for exactly this reason: it is one more step of permission than a straightforward sub-letting already needs.

Related documents, and when you would need them

Questions about this document

Does the Sub-Lease / Sub-Licence Agreement (Commercial Premises) need stamp paper or stamp duty in Punjab and Chandigarh?

Duty is on rent, not premises value, banded by term, exactly as for a head lease — because a sub-lease is itself a "lease" within s.2(16) of the Indian Stamp Act, 1899, and a leave and licence of immovable property for a fee falls to be stamped the same way in the absence of any lower, separate article for it in the Schedule as it applies in Punjab or Chandigarh. All figures checked 6 Sep 2026 (undated tables), carried over from the same source used for the head-lease template.

PUNJAB: under one year 4% of annual rent; one-five years 8% of average rent; five-ten years 3%; ten-twenty 3% of twice it; twenty-thirty 3% of three times; thirty-99 3% of four times. Reg fee 1% (twice on the ten-twenty band), facilitation Rs 500, pasting Rs 200. The 8% one-five-year band is higher than the bands on either side of it and looks like a departmental error — confirm at the counter. E-stamp via SHCIL before execution.

CHANDIGARH: up to five years 2% plus 3% on the refundable security deposit only, never advance rent (verified at the Sub-Registrar, SAS Nagar (Mohali), September 2026); five-ten 3% plus 3%; ten-twenty 3% of twice plus 3%; twenty-thirty 3% of three times plus 3%; thirty-100 3% of four times plus 3%. Reg fee 1% capped Rs 10,000 plus Rs 20 pasting. No sub-one-year band.

BOTH: no family/gender concession. Under-stamping: deficiency plus penalty fall on whoever the deed names, and it is impounded until paid. Whether the registering office in fact charges a leave and licence at the same rate as a sub-lease, rather than treating it as a different instrument, is a question this template answers on the s.2(16) definition and flags for confirmation at the counter before the stamp is bought — see the Stamp Duty and Registration clause.

Does the Sub-Lease / Sub-Licence Agreement (Commercial Premises) need registration in Punjab and Chandigarh?

A SUB-LEASE granting exclusive possession is compulsorily registrable on exactly the same footing as the head lease it is carved out of — s.107 TPA/s.17(1)(d) Registration Act, 1908 for year-to-year, over-a-year, or yearly-rent lettings. Present within four months (s.23), four more on fine (s.25); inadmissible under s.49 if unregistered. A LEAVE AND LICENCE that genuinely creates no interest in immovable property is not brought within s.17(1)(d) by that section, because that section reaches leases and not licences; registering it is not compulsory on that account, though the Parties may still choose to register or notarise it for evidentiary weight, and nothing in this Deed prevents that choice.

PUNJAB: Sub-Registrar of the tehsil (S.A.S. Nagar for IT City/Mohali), via igrpunjab.gov.in, photographs/Aadhaar/PAN. The same s.4, Punjab Rent Act, 1995 question that attaches to a head lease of non-residential premises attaches to a sub-tenancy of the same premises: whether s.4(2) requires the Schedule I Form at a flat Rs 1,000 fee rather than this deed's ad valorem duty. Settle it in writing at the counter before engrossing, exactly as for the head lease.

CHANDIGARH: Sub-Registrar, 30 Bays Building — 12-1pm presentation, 3-5pm registration, 9-11am collection. Fee 1% capped Rs 10,000 plus Rs 20 pasting. Where the head lease is itself a Chandigarh Estate Office lease, the sub-letting may separately need that office's prior permission on top of registration of this deed — see the Head Lease clause.

Deeds executed outside India for Chandigarh need Finance Department embossing.

What does the Sub-Lease / Sub-Licence Agreement (Commercial Premises) cost on Kaagazaat?

₹1,499, GST included.

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Does the Sub-Lease / Sub-Licence Agreement (Commercial Premises) need witnesses?

TPA does not require attestation of a sub-lease (s.107 needs only execution by both parties), and nothing requires attestation of a licence either, but both registering offices expect two witnesses, adults, not parties, wherever this Deed is in fact presented for registration.

Chandigarh adds a real qualification where registration is sought there: under para 127, Punjab Registration Manual, the FIRST witness must be known to the Sub-Registrar (councillor/gazetted officer/advocate in sectors; Lambardar/Sarpanch/Member Panchayat rural), both known to each other.

Punjab: two identifying witnesses with photo ID, captured in NGDRS where the deed is registered there.

What gates registration, where this Deed is a sub-lease requiring it, is attendance: both executants in person with photo ID/PAN, photographed, thumb impressions; a company through its authorised signatory with board resolution; an absent executant needs a s.33-authenticated POA.

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