Liaison Agent Agreement for India

Liaison Agent Agreement Template for India

A Liaison Agent Agreement under Indian law establishes the terms and conditions for a local representative to act as a communication channel and facilitator between a foreign entity and Indian stakeholders. This agreement, governed by Indian legislation including FEMA and RBI guidelines, defines the scope of permitted non-commercial activities, compliance requirements, and operational parameters for the liaison relationship. It ensures clear delineation of the agent's authority while maintaining compliance with Indian foreign business regulations.

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What is a Liaison Agent Agreement?

The Liaison Agent Agreement is a crucial document for foreign companies seeking to establish a preliminary presence in India without direct commercial operations. This agreement type is specifically designed to comply with Indian regulatory requirements, particularly FEMA regulations and RBI guidelines governing foreign business presence. The document outlines the appointment of a liaison agent who acts as an official representative for communication, market research, and relationship building, while explicitly prohibiting direct business activities. Used when foreign entities need local representation for information gathering, networking, and coordination with Indian stakeholders, the agreement ensures compliance with Indian foreign business regulations while protecting both parties' interests.

What sections should be included in a Liaison Agent Agreement?

1. Parties: Identification of the foreign entity and the liaison agent, including their legal status and contact details

2. Background: Context of the appointment, including the foreign entity's intent to establish liaison activities in India

3. Definitions: Key terms used in the agreement, including regulatory terms from FEMA and RBI guidelines

4. Appointment and Term: Formal appointment of the liaison agent and duration of the agreement

5. Scope of Services: Detailed description of permitted liaison activities, explicitly excluding commercial, trading, or business activities

6. Rights and Limitations: Clear outline of agent's authority and specific limitations as per RBI guidelines

7. Duties and Responsibilities: Specific obligations of the liaison agent, including reporting requirements and compliance duties

8. Compensation: Fee structure and payment terms for liaison services

9. Compliance Requirements: Obligations to comply with Indian laws, particularly FEMA, RBI guidelines, and anti-corruption laws

10. Confidentiality: Provisions for handling confidential information and data protection

11. Termination: Conditions and process for ending the agreement

12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

What sections are optional to include in a Liaison Agent Agreement?

1. Insurance: Requirements for professional liability insurance, used when dealing with high-value or sensitive liaison activities

2. Intellectual Property: Protection of IP rights, needed when liaison activities involve technical or proprietary information

3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

4. Non-Competition: Restrictions on agent's activities with competitors, if applicable to the business context

5. Digital Communications: Protocols for electronic communications and data handling, important for modern business operations

6. Succession Planning: Procedures for change in liaison agent personnel or entity, relevant for long-term arrangements

What schedules should be included in a Liaison Agent Agreement?

1. Schedule A - Service Description: Detailed breakdown of specific liaison activities and responsibilities

2. Schedule B - Compensation Details: Detailed fee structure, payment terms, and reimbursement policies

3. Schedule C - Compliance Checklist: List of specific regulatory requirements and compliance procedures

4. Schedule D - Reporting Templates: Standard formats for regular reports and communications

5. Schedule E - Key Contacts: List of authorized representatives and contact persons from both parties

6. Appendix 1 - Required Documents: List of documents required for regulatory compliance and reporting

7. Appendix 2 - Communication Protocols: Procedures for routine and emergency communications between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Automotive

Infrastructure

Telecommunications

Pharmaceuticals

Retail

Energy

Professional Services

Education

Relevant Teams

Legal

Compliance

International Business Development

Corporate Affairs

Operations

Government Relations

Risk Management

Business Strategy

Regulatory Affairs

Relevant Roles

International Business Development Manager

Country Manager

Legal Counsel

Compliance Officer

Business Development Director

Foreign Markets Coordinator

Regional Director

Corporate Affairs Manager

Regulatory Affairs Manager

Government Relations Manager

Operations Director

Managing Director

Chief Representative Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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