Shop Sublease Agreement
Before you draft or sign a 'shop sublease' in Bangladesh, understand the controlling rule: Section 81A(2) of the State Acquisition and Tenancy Act, 1950 imposes an absolute statutory ban on subletting a non-agricultural tenancy, and a shop lease is a non-agricultural tenancy. A sublease in violation of that provision is void from its inception, regardless of what the shop rent contract says about the tenant's right to sub-let and regardless of whether the landlord signs the sublease document. This overrides the general Transfer of Property Act consent rule that many old shop-rent templates rely on. If the practical need is to share the shop space with another business, the working structures are (a) getting the landlord to add the second business as a joint tenant on the head-lease, or (b) exploring a licence-to-occupy arrangement (legally distinct from a lease) — both with proper legal advice.
What this agreement typically contains
- The head-lease details and the landlord (a party to any lawful workaround)
- The identity of the original shop-tenant and the incoming business
- The legal structure chosen with a lawyer (joint-tenancy amendment / licence / neither)
- Precise scope of the incoming business’s use (which trade, opening hours, staffing)
- Rent / fee split between the two occupants
- An express acknowledgement that Section 81A(2) SATA 1950 bars subletting and this document is not a sublease
- Trade-licence and utility responsibility
- Termination, dispute route, and reversion of possession
- Signatures of all three parties (landlord + original tenant + incoming business)
Frequently asked questions
- Is subletting a rented shop in Bangladesh legal at all?
- No. Section 81A(2) of the State Acquisition and Tenancy Act, 1950 imposes an absolute statutory ban on subletting a non-agricultural tenancy, and a shop lease sits squarely within that category. Any purported sublease is void from its inception, whatever the rent contract says. This ban overrides the general Transfer of Property Act rule about landlord consent — the consent rule does not apply here because there is no lawful sublease to consent to.
- The head-lease says I have "right to sub-let" — does that survive?
- No. A rent-contract clause purporting to grant a right to sub-let a non-agricultural tenancy cannot override Section 81A(2) — the statute controls, and a sublease made under that clause is still void from inception. If your head-lease has such a clause, it does not give you what it looks like it gives you; if you need to share the space, you have to use a lawful alternative structure (joint tenancy on the head-lease itself, or a licence), and take advice on the specific facts.
- How can I lawfully bring a second business into the same shop?
- The two working structures are (a) get the landlord to amend the head-lease to add the second business as a joint tenant from the outset, so both are on the tenancy directly; or (b) explore a licence-to-occupy arrangement with the landlord's written consent — a licence is legally different from a lease, so it does not fall foul of the sublet ban, but it works only in narrow situations. Do not draft either from a generic template without a lawyer looking at your actual head-lease.