Engagement Agreement Template for India

An Engagement Agreement lays out the terms and responsibilities when you hire a professional service provider in India, like a lawyer, consultant, or accounting firm. It spells out what services they'll provide, how much they'll charge, and how long the relationship will last.

These agreements protect both parties under Indian contract law by clearly defining payment terms, confidentiality rules, and dispute resolution methods. They're especially important for regulated professions like legal services, where the Bar Council of India requires clear documentation of client relationships. Good engagement agreements help prevent misunderstandings and set realistic expectations from day one.

Use an Engagement Agreement when starting any professional service relationship in India, especially with lawyers, consultants, or advisors. The right time is before work begins—ideally during your initial discussions about scope, fees, and timeline. This helps prevent costly misunderstandings and ensures compliance with Indian professional regulations.

Many firms create these agreements when hiring external auditors, IT consultants, or legal counsel for specific projects. They're particularly crucial for regulated services where documentation requirements are strict, like chartered accountancy or legal services. Having clear terms from the start protects both parties and makes project management smoother.

• Consulting Engagement Letter: Used for management consulting services, outlining project scope and deliverables
• Engagement Contract: More formal version with detailed terms for complex, long-term professional relationships
• Client Engagement Letter: Common in legal and accounting services, focusing on professional obligations and client expectations
• Service Engagement Letter: Tailored for general professional services with flexible terms and delivery schedules
• Business Broker Engagement Agreement: Specialized for business sale intermediaries, including commission structures and exclusivity terms

• Professional Service Providers: Lawyers, consultants, accountants, and advisors who draft and customize Engagement Agreements to define their service offerings
• Corporate Clients: Companies and businesses that engage professional services, often through their legal or procurement teams
• Legal Teams: In-house counsel who review and negotiate terms to protect their organization's interests
• Regulatory Bodies: Professional associations like the Bar Council of India that set standards for engagement documentation
• Business Owners: Small and medium enterprise owners who directly engage professional services for specific projects

• Scope Definition: List specific services, deliverables, and project milestones with clear timelines
• Party Details: Gather complete business information, registration numbers, and authorized signatories of both parties
• Fee Structure: Document payment terms, billing cycles, and any additional costs or expenses
• Service Standards: Define quality metrics, reporting requirements, and communication protocols
• Compliance Check: Review professional body regulations and relevant Indian laws affecting your industry
• Document Generation: Use our platform to create a legally sound agreement that includes all mandatory elements
• Internal Review: Have key stakeholders verify all terms align with business objectives before finalizing

• Party Identification: Full legal names, addresses, and registration details of service provider and client
• Scope of Services: Detailed description of professional services, deliverables, and exclusions
• Fee Structure: Clear payment terms, rates, billing cycles, and expense policies
• Duration & Termination: Agreement period, renewal terms, and conditions for ending the engagement
• Confidentiality: Protection of sensitive information and trade secrets as per Indian contract law
• Dispute Resolution: Jurisdiction, arbitration procedures, and governing law specifications
• Liability Limits: Professional indemnity coverage and limitation of liability clauses
• Compliance Statement: Adherence to relevant Indian professional regulations and standards

People often confuse an Engagement Agreement with an Advisor Agreement. While both involve professional services, they serve different purposes in Indian business relationships. An Engagement Agreement focuses on specific project deliverables and timelines, while an Advisor Agreement typically covers ongoing strategic guidance and consultation.

• Scope and Duration: Engagement Agreements are usually project-specific with clear end dates, while Advisor Agreements often run indefinitely with periodic reviews
• Payment Structure: Engagement Agreements commonly use fixed fees or hourly rates for defined work, whereas Advisor Agreements might include retainers, equity compensation, or success fees
• Deliverables: Engagement Agreements specify concrete outputs and milestones; Advisor Agreements focus more on strategic input and availability
• Professional Obligations: Engagement Agreements detail specific service standards and project outcomes, while Advisor Agreements emphasize broader fiduciary duties and strategic counsel