Can a landlord raise shop rent whenever they like?

Not arbitrarily. Under the Premises Rent Control Act, 1991 rent for a covered premises cannot exceed the standard rent fixed for the area; and the landlord cannot increase the agreed rent during the term of a written agreement except by the mechanism the parties themselves put in writing (typically a fixed annual step, e.g. 5-10% per year). Any increase outside those two paths is not enforceable.

Is the sale of a shop with goodwill (pagri) legally recognised?

Yes, sale of a shop's tenancy rights together with its goodwill is a valid contract under the Contract Act, 1872 and is common in Bangladeshi bazaars and markets. However, because it usually involves transferring possession of premises the seller does not own, the landlord's consent is essential — otherwise the sale can be voided as a breach of the underlying lease. A written, signed and (ideally) registered agreement recording the landlord's consent, the goodwill amount, and the buyer's undertaking to abide by the existing lease is the safest structure.

What happens to the security deposit if the shop is vacated early?

Under the Premises Rent Control Act, the landlord must return the security deposit within one month of vacation, after adjusting arrears of rent, cost of repairing genuine damage (fair wear and tear excluded), and any utility bills the tenant left unpaid. Making the deposit non-refundable in the written contract does not override this — the statutory return obligation stands.

Shop & Commercial Space

For most small and medium businesses in Bangladesh, the shop or commercial space is the single most valuable asset the business rents, buys, or transfers. A shop agreement — whether a monthly market-place rent, a full sale with goodwill, or a possession/pagri transfer — sets out the exact monthly rent, term, deposit, permitted use, renewal and eviction conditions, and (in sale cases) the treatment of stock, fixtures and existing customer relationships. A clear written agreement is essential because most disputes in this category arise months later over renewal terms, rent escalation, or possession claims. Important: Section 81A(2) of the State Acquisition and Tenancy Act, 1950 imposes an absolute statutory ban on subletting a non-agricultural tenancy in Bangladesh — a purported sublease is void from inception, so if you need to share space or bring in a co-tenant, structure it as a joint tenancy or a licence rather than a sublet.

Stamp & registrationStamp duty & registration: shop rent for one year or less runs on a Tk. 300 non-judicial stamp. Rent contracts longer than one year need Registration-Act registration. Shop sale or possession/pagri transfer that includes the leasehold interest usually needs a registered instrument, especially if the landlord's consent is being formally recorded.

Contract types in this category

Frequently asked questions

Can a landlord raise shop rent whenever they like?: Not arbitrarily. Under the Premises Rent Control Act, 1991 rent for a covered premises cannot exceed the standard rent fixed for the area; and the landlord cannot increase the agreed rent during the term of a written agreement except by the mechanism the parties themselves put in writing (typically a fixed annual step, e.g. 5-10% per year). Any increase outside those two paths is not enforceable.
Is the sale of a shop with goodwill (pagri) legally recognised?: Yes, sale of a shop's tenancy rights together with its goodwill is a valid contract under the Contract Act, 1872 and is common in Bangladeshi bazaars and markets. However, because it usually involves transferring possession of premises the seller does not own, the landlord's consent is essential — otherwise the sale can be voided as a breach of the underlying lease. A written, signed and (ideally) registered agreement recording the landlord's consent, the goodwill amount, and the buyer's undertaking to abide by the existing lease is the safest structure.
What happens to the security deposit if the shop is vacated early?: Under the Premises Rent Control Act, the landlord must return the security deposit within one month of vacation, after adjusting arrears of rent, cost of repairing genuine damage (fair wear and tear excluded), and any utility bills the tenant left unpaid. Making the deposit non-refundable in the written contract does not override this — the statutory return obligation stands.

Shop & Commercial Space

Frequently asked questions

Can a landlord raise shop rent whenever they like?: Not arbitrarily. Under the Premises Rent Control Act, 1991 rent for a covered premises cannot exceed the standard rent fixed for the area; and the landlord cannot increase the agreed rent during the term of a written agreement except by the mechanism the parties themselves put in writing (typically a fixed annual step, e.g. 5-10% per year). Any increase outside those two paths is not enforceable.
Is the sale of a shop with goodwill (pagri) legally recognised?: Yes, sale of a shop's tenancy rights together with its goodwill is a valid contract under the Contract Act, 1872 and is common in Bangladeshi bazaars and markets. However, because it usually involves transferring possession of premises the seller does not own, the landlord's consent is essential — otherwise the sale can be voided as a breach of the underlying lease. A written, signed and (ideally) registered agreement recording the landlord's consent, the goodwill amount, and the buyer's undertaking to abide by the existing lease is the safest structure.
What happens to the security deposit if the shop is vacated early?: Under the Premises Rent Control Act, the landlord must return the security deposit within one month of vacation, after adjusting arrears of rent, cost of repairing genuine damage (fair wear and tear excluded), and any utility bills the tenant left unpaid. Making the deposit non-refundable in the written contract does not override this — the statutory return obligation stands.