This is a rental agreement between a landlord/house owner and a tenant.
The tenant may be a company which would like to take out the premises on rent/lease for its employees.
There is nothing wrong in this rental agreement.
Besides, if you would like to offer more services like PG arrangements, you can enter into such contracts as per the terms.
Since this involves food, the safety measures which are meant for any hotel or mess have to observed as per the prevailing law.
It may include permission from local civic body, health department, fire services department, etc.,
As far as the employees details is concerned, the company has to give an undertaking that the employees are on their roll and they are liable for any untoward incident due to their employees will be their responsibility, hence police verification process may not be necessary.
Since this would be a leased out premises it may not come under guest house but since you offer the extra services for food , it may come under under PG accommodation for which the besides health safety and other permissions, it may be treated as PG accommodation on monthly rental lease agreement.
You may also take the advise of a local advocate on any further issue on this.