Consultant Agreement format for India — Generate instantly

A Consultant Agreement is the contract Indian businesses use to engage individuals or firms in an advisory or specialised capacity outside the employer-employee relationship — independent strategy consultants, fractional CFOs and CTOs, technical advisors, marketing consultants and management consultants. The single most important purpose of the agreement is to establish independent contractor status clearly, so that the consultant is not later deemed to be an employee under the Code on Social Security, 2020 or the Industrial Disputes Act, 1947. The consequences of mis-classification — PF and ESI liability, gratuity, retrenchment compensation — are significant. A well-drafted consultant agreement therefore states that the consultant is independent, controls their own working hours, uses their own tools, bears their own taxes (GST, advance tax), is responsible for their own statutory contributions, and is engaged on a deliverables or time basis rather than a fixed monthly salary. It also covers IP ownership of the consultant's work product, confidentiality, conflict of interest, termination on notice, and an indemnity. ContractWala generates a consultant agreement in two minutes.

Key clauses required under Indian law

• Explicit statement of independent contractor status (no employment)
• Scope of consulting services and deliverables
• Fee structure: retainer, hourly, milestone or success-based
• Consultant responsible for own GST, TDS (Section 194J) and statutory dues
• IP ownership of consulting work product (assigned to client)
• Confidentiality and non-solicitation obligations
• Conflict of interest and disclosure of competing engagements
• Termination on notice (typically 30 days) with payment for work done

Free sample snippet

Frequently asked questions