Finder's Fee Agreement Template for Singapore

A Finder's Fee Agreement is a legal contract that establishes the terms under which you compensate someone for introducing you to potential clients, investors, or business opportunities. In Singapore, these agreements serve as crucial protection for both parties by clearly defining roles, responsibilities, and payment obligations while ensuring compliance with local regulations.

When do you need this document?

You need a Finder's Fee Agreement when engaging intermediaries to identify and introduce potential business partners, clients, or investment opportunities. This document is essential for real estate agents connecting property buyers with sellers, business brokers facilitating company acquisitions, or consultants introducing startups to venture capital firms. The agreement becomes particularly important when the finder's compensation depends on successful completion of transactions, as it clarifies when fees become payable and prevents disputes over commission entitlements.

Key legal considerations

Your agreement must clearly distinguish the finder's role from regulated financial advisory services to avoid licensing requirements under the Financial Advisers Act and Securities and Futures Act. Include specific definitions of what constitutes a successful introduction and the circumstances triggering fee payment. The fee structure should be transparent, specifying whether compensation is a flat rate, percentage of transaction value, or tiered based on deal size. Confidentiality clauses protect sensitive business information shared during the introduction process, while termination provisions outline how either party can end the relationship. Consider including non-compete clauses to prevent finders from working with direct competitors during the agreement term.

Legal requirements in Singapore

Under the Singapore Contract Act (Cap. 2), your Finder's Fee Agreement must contain valid consideration and clear terms to be legally enforceable. If the finder's activities involve money-changing or remittance services, ensure compliance with the Money-changing and Remittance Businesses Act. The Employment Act requires clear distinction between independent contractor and employee status to avoid unintended employment obligations. When introductions involve securities or investment products, verify that neither party requires licensing under relevant financial services legislation. Anti-corruption provisions should explicitly prohibit any payments that could constitute bribes or improper inducements under Singapore's Prevention of Corruption Act.