Advisory Agreement Template for Pakistan

An Advisory Agreement outlines the professional relationship between an advisor and their client in Pakistan, setting clear terms for consulting services, strategic guidance, or expert recommendations. These agreements are commonly used by financial advisors, management consultants, and business strategists to define their scope of work, compensation structure, and service commitments.

Under Pakistani contract law, Advisory Agreements protect both parties by specifying confidentiality obligations, performance metrics, and liability limitations. They're particularly important in regulated sectors like banking and securities trading, where SECP guidelines require formal documentation of advisory relationships to ensure transparency and compliance with local financial regulations.

Use an Advisory Agreement when bringing on professional advisors to guide strategic decisions, manage investments, or provide specialized expertise to your Pakistani business. This formal agreement becomes essential before sharing sensitive company information or when advisors will significantly influence business operations, especially in regulated sectors like banking or securities trading.

The agreement proves particularly valuable when engaging financial consultants, management experts, or industry specialists for long-term projects. SECP regulations require documented advisory relationships for listed companies and financial institutions. Companies also need these agreements when seeking specialized guidance during mergers, acquisitions, or major organizational restructuring.

• Advisory Board Agreement: Establishes formal relationships with multiple advisors serving on a company's advisory board, outlining collective responsibilities and group dynamics.
• Financial Advisory Agreement: Specific to financial consultants providing investment guidance, wealth management, or capital raising services under SECP regulations.
• Advisory Services Agreement: Comprehensive template for general business consulting, covering strategic planning and operational guidance.
• Agreement Between Consultant And Company: Focused on individual consultant engagements, detailing specific project deliverables and milestones.
• Advisory Services Contract: More formal version emphasizing legal compliance and regulatory requirements for specialized industry sectors.

• Business Advisors and Consultants: Professionals offering strategic guidance, financial expertise, or industry-specific knowledge to Pakistani companies.
• Corporate Clients: Companies seeking expert advice, from startups to established corporations, particularly those regulated by SECP.
• Legal Counsel: Corporate lawyers who draft and review Advisory Agreements to ensure compliance with Pakistani laws and regulations.
• Company Directors: Board members and executives who approve and sign these agreements on behalf of their organizations.
• Compliance Officers: Internal professionals ensuring adherence to regulatory requirements and maintaining proper documentation.
• Industry Regulators: SECP officials who oversee advisory relationships in regulated sectors like banking and securities.

• Party Details: Gather complete legal names, addresses, and registration numbers of both advisor and client company.
• Scope Definition: Clearly outline specific advisory services, deliverables, and expected outcomes.
• Duration Terms: Determine agreement length, renewal conditions, and termination procedures.
• Compensation Structure: Document fees, payment schedules, and any performance-based incentives.
• Compliance Check: Review SECP requirements for your industry sector and advisory relationship type.
• Confidentiality Needs: List specific information requiring protection and usage restrictions.
• Document Generation: Use our platform to create a customized, legally-sound Advisory Agreement that meets Pakistani legal requirements.

• Identification Section: Full legal names, addresses, and registration details of advisor and client company under Pakistani law.
• Services Scope: Detailed description of advisory services, deliverables, and performance metrics.
• Term and Termination: Agreement duration, renewal options, and conditions for early termination.
• Compensation Terms: Fee structure, payment schedule, and expense reimbursement policies.
• Confidentiality Clause: Information protection requirements aligned with Pakistani data protection laws.
• Dispute Resolution: Governing law, jurisdiction selection, and arbitration procedures under Pakistani courts.
• Compliance Statement: Reference to relevant SECP regulations and industry-specific requirements.
• Execution Block: Signature requirements for authorized representatives with company seals.

An Advisory Agreement differs significantly from an Agency Agreement in several key aspects, though both involve professional services. While Advisory Agreements focus on providing guidance and recommendations, Agency Agreements create a direct representative relationship where one party can act on behalf of another.

• Scope of Authority: Advisory Agreements limit the advisor's role to providing recommendations, while Agency Agreements grant actual authority to make decisions or conduct transactions.
• Legal Liability: Advisors typically face limited liability for client decisions, whereas agents can be directly liable for actions taken on behalf of the principal.
• Regulatory Framework: Under Pakistani law, Advisory Agreements primarily fall under SECP consultancy regulations, while Agency Agreements are governed by contract and partnership laws.
• Duration and Commitment: Advisory relationships are often project-based or periodic, while agency relationships typically involve ongoing operational involvement.