Overview
A Consultancy Agreement is a legally binding contract between a consultant and a client for providing professional or advisory services. It clearly defines the scope of services, payment terms, duration of engagement, confidentiality obligations, intellectual property rights, and termination conditions. In India, Consultancy Agreements are commonly used in sectors such as legal advisory, financial consulting, IT services, HR consulting, marketing strategy, business advisory, and technical consultancy.
Unlike an Employment Agreement, a Consultancy Agreement establishes an independent contractor relationship. The consultant is not considered an employee of the company and is not entitled to employee benefits such as provident fund, gratuity, or paid leave unless specifically agreed. The agreement must clearly specify that the consultant is working on a principal to principal basis to avoid any legal confusion under labour laws. It also defines deliverables, timelines, reporting structure, and performance expectations.
A well drafted Consultancy Agreement protects both parties. It ensures that the consultant receives agreed compensation for services rendered and protects the client from delays, substandard performance, or disclosure of confidential information. It also includes clauses related to indemnity, limitation of liability, dispute resolution, non disclosure, non solicitation, and compliance with applicable laws such as the Indian Contract Act, 1872 and GST laws, if applicable.
At BizGlobal, we draft customised Consultancy Agreements based on your business requirements and industry standards. Whether you are appointing an individual consultant, a professional firm, or engaging in project based advisory services, our team ensures that your agreement is legally compliant, commercially practical, and structured to minimise risk. We focus on protecting your business interests while maintaining clarity and transparency in professional engagements.
