Shop Rent Agreement

A shop rent agreement (dokān bhāṛā chukti) is the written contract by which a landlord lets out a commercial retail space to a tenant to run a business. It's structurally similar to a house rent agreement but the business-critical clauses are different: what type of business the tenant is allowed to operate, how the standard rent may escalate year-on-year, the handling of any goodwill built up in the location, and the notice period the landlord must give before eviction. Getting these written before the shop opens saves months of negotiation later when either side wants to change something. The Premises Rent Control Act, 1991 sets the baseline (standard rent, one-month advance-rent cap without the Rent Controller's written consent, refund obligation) and the agreement fills in everything else. Note: Section 81A(2) of the State Acquisition and Tenancy Act, 1950 imposes an absolute ban on subletting a non-agricultural tenancy in Bangladesh — a purported sublease is void from inception, whatever the rent contract says.

Stamp & registrationTk. 300 non-judicial stamp for terms up to one year, compulsory registration under the Registration Act, 1908 for longer terms. Two witnesses required. Include the trade licence number of the tenant's business — some landlords make its issue a condition precedent, so drafting it into the agreement avoids ambiguity.

What this agreement typically contains

Landlord's and tenant's identity + tenant's business / trade licence number
Complete address and area (sq ft) of the shop
Monthly rent in figures and words
Security deposit (capped at one month by law) and refund conditions
Term, notice period, and renewal formula
Permitted business use (specific trade — e.g. pharmacy, groceries, restaurant)
Statutory bar on subletting a non-agricultural tenancy (State Acquisition and Tenancy Act, 1950, Section 81A(2)) — the agreement cannot override it; assignment options should be structured with legal advice
Rent-escalation mechanism (fixed % per year, or reset at renewal)
Utility responsibility (electricity, gas, water, waste)
Repair and maintenance responsibility
Grounds and procedure for eviction (unpaid rent, prohibited use, etc.)
Signatures of both parties and at least two witnesses

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Frequently asked questions

Can the landlord increase the shop rent every year?: Only through the mechanism written into the agreement. Under the Premises Rent Control Act, 1991, during the term of a written contract the landlord cannot increase the rent unilaterally — any escalation must follow what the parties themselves specified (typically a fixed 5-10% per year, or a fresh negotiation at renewal). Any other in-term increase is not enforceable.
Can I sub-let part of my rented shop to another business?: No. 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 sublease is void from its inception, whatever the rent contract says. This overrides the general Transfer of Property Act rule about landlord's consent, which does not apply here. If you need to share the space, don't structure it as a sublet: (a) sign the original lease with both businesses named as joint tenants from the outset, or (b) explore a licence arrangement (which is legally distinct from a lease) with the landlord's written consent. Take legal advice before any arrangement that resembles a sublet — the risk of the whole thing being void is too high to guess.

Other contracts in this category

What this agreement typically contains

Landlord's and tenant's identity + tenant's business / trade licence number

Complete address and area (sq ft) of the shop

Monthly rent in figures and words

Security deposit (capped at one month by law) and refund conditions

Term, notice period, and renewal formula

Permitted business use (specific trade — e.g. pharmacy, groceries, restaurant)

Statutory bar on subletting a non-agricultural tenancy (State Acquisition and Tenancy Act, 1950, Section 81A(2)) — the agreement cannot override it; assignment options should be structured with legal advice

Rent-escalation mechanism (fixed % per year, or reset at renewal)

Utility responsibility (electricity, gas, water, waste)

Repair and maintenance responsibility

Grounds and procedure for eviction (unpaid rent, prohibited use, etc.)

Signatures of both parties and at least two witnesses

Frequently asked questions

Can the landlord increase the shop rent every year?

Only through the mechanism written into the agreement. Under the Premises Rent Control Act, 1991, during the term of a written contract the landlord cannot increase the rent unilaterally — any escalation must follow what the parties themselves specified (typically a fixed 5-10% per year, or a fresh negotiation at renewal). Any other in-term increase is not enforceable.

Can I sub-let part of my rented shop to another business?

No. 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 sublease is void from its inception, whatever the rent contract says. This overrides the general Transfer of Property Act rule about landlord's consent, which does not apply here. If you need to share the space, don't structure it as a sublet: (a) sign the original lease with both businesses named as joint tenants from the outset, or (b) explore a licence arrangement (which is legally distinct from a lease) with the landlord's written consent. Take legal advice before any arrangement that resembles a sublet — the risk of the whole thing being void is too high to guess.