Most Companies in Mumbai prefer to sign a Company Lease which means that the Leave and License agreements are signed by the Company for the use and occupation of the Executive who will be residing in the apartment.
The occupant could be changed if required but a provision for the same has to be made in the Agreements. A popular term for Company Lease Accommodation is “CLA” which is most commonly used by Multinational, Large Corporate and Foreign Companies who have policies to provide there both Expatriate and Indian Employees Housing.
An overview of the Company Lease Accommodation (CLA)
- In a CLA, the Company is liable for any default, damage or any breach of the terms and conditions which are usually outlined in the Leave and License Agreements.
- A CLA can be signed in for any period of 12 months to 60 Months
- It is more favored with the owners to give their properties in the name of the Company, Corporates etc. as they are more comfortable dealing with a Company than an individual.
- A lot of Executives prefer taking apartments on Individual Lease as well, but they work with the same companies as they save on some "Fringe Benefit Taxes."