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Home / Owners / How to convert residential property to commercial in Maharashtra?
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How to convert residential property to commercial in Maharashtra?

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2 2021-11-08T12:39:34+00:00
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Conversion of residential property to commercial property depends on the zoning authorities and local bodies in any state in India. The state laws vary for such purposes. I have witnessed people who wish to know about commercial use of residential premises. Let me tell you about the same here. You will have to get an idea about local municipal government and the zoning law applied by them as well. There are a few professions which can operate from a residential property. Let us take a look at how to carry out commercial activity in residential premises.

How to convert residential property to commercial in Maharashtra?

Before we jump into the process straightaway let us first see what Maharashtra law says about commercial activities in residential areas. In Mumbai, you have to obtain a No-Objection Certificate (NOC) from your respective society. Ideally, you can use up to 220 sq ft in a residential apartment for commercial use. 

For commercial use of residential premises you will have to get in touch with the local property tax authorities in your area and submit an application requesting conversion of residential plot to commercial property. The authorities will analyze the locality, application and zoning plan and laws before approving your request. Once the approval is done, the changes will be made in your property tax. You will have to pay the conversion charges as well. The taxes and laws will be applicable as per the commercial rates from then onwards.

Commercial activities that can’t be carried out in residential premises

Any commercial activities related to the following are illegal in the eyes of the Supreme Court of India if carried out in a residential premises:

  • Banquet Hall

  • Any activity involving use of hazardous or combustible substances

  • Automobile repair shop

  • Shops with business in sale of construction materials, liquor, and junk food 

I hope now you have an idea of how to convert residential property to commercial in Maharashtra.

0 2022-05-27T10:36:01+00:00

Hey there,

I'm a 27-year-old doctor from Mumbai who wants to turn a room in my rented apartment into a clinic. My landlord, on the other hand, informed me that if I did so, he would be obliged to raise the monthly rent because he would be responsible for commercial property tax on his residential property. When I sought legal advice over the

residential to commercial conversion charges and rules

, I was told that my landlord was correct. 

Get legal help from the qualified legal experts of NoBroker to get consultations on issues like converting your residential space to a commercial space. Residential to commercial conversion

What does the law say about this? You can utilise or rent your residential property for business purposes if the zoning rules and housing society management guidelines allow it. States, on the other hand, have distinct procedures to convert

residential to commercial

property. Some states allow professionals such as doctors, lawyers, and chartered accountants to utilise up to 30% of a home for commercial purposes, whereas others do not. If your state permits it, you must first obtain permission from the housing society before converting a residential property to a commercial property.

It may also be essential to acquire approval from the local municipal government for the conversion of a flat into a commercial establishment, depending on the nature of the business. Once a property is designated as a commercial property, it is regarded as such for all purposes, including paying higher property taxes.

List of commercial activities allowed in residential area in Mumbai

Before converting a portion of your home into an office, there are three things to consider:

  • Obtain a store and establishment licence from the relevant local authority.

  • Before you apply, make sure you understand the area you'll require and the type of business you'll be running.

  • Depending on the area, the size of the property, and the type of the company activity, the civic authority would levy commercial rates on the property as well as the water and power supply.

It should be noted that some professions have been exempted from this rule. If you conduct a teaching, art, yoga, dance, or tuition class from your home, you are usually exempt from paying commercial charges.

I hope I was able to help you with understanding

residential to commercial conversion charges and rules.

Read More: Can residential property be Used as Commercial?
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