Renting a shop or office in Navi Mumbai: a practical checklist

A good commercial space can make a business, and a wrong one can drain it. Use this checklist before you rent a shop or office anywhere in Navi Mumbai, from Vashi and Koparkhairane to Pushpak Nagar.

Location and footfall

• Visit at different times of day. A road that is busy in the evening may be quiet in the morning.
• Check visibility from the main road, parking for customers, and access for deliveries.
• Look at the other businesses nearby. Some businesses do well next to competitors, others do not.

Permitted use and approvals

• Make sure the premises is approved for commercial use. A flat in a residential building generally cannot be used as a shop.
• If the unit is in a society, check its rules on signboards, working hours and the kind of business allowed.
• For businesses like restaurants, clinics or anything that needs a fire NOC, check early that the space can meet the requirements.

Rent terms

• Carpet area versus built-up area: know which one the rent is based on.
• Deposit, annual escalation (the yearly rent increase) and the lock-in period, during which neither side can end the agreement.
• A rent-free fit-out period for interiors. It is often negotiable, so ask.
• The notice period and what happens to your interiors when you leave.

Other costs

• Maintenance charges and property tax: who pays which?
• Electricity load and meter. Check that the sanctioned load is enough for your equipment.
• GST can apply to commercial rent. Ask your chartered accountant how it applies to you.

Licences and registrations

• Registration under the Maharashtra Shops and Establishments Act (often called the Gumasta licence).
• Any trade or business licence your activity needs from the municipal corporation.
• Permission for signboards where required.

Before you sign

• Check the owner's documents, and make sure the person signing actually owns the premises or is authorised to rent it out.
• Commercial Leave and Licence agreements must also be registered. See our guide on rent agreement documents and registration.
• Take dated photos of the premises on the day you get possession.