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An Advisory Agreement sets out the terms when someone hires a professional advisor to provide expert guidance, commonly used in India's financial and business sectors. It spells out what advice the advisor will give, how they'll charge for their services, and what each party needs to do - much like a roadmap for the advisory relationship.

Under SEBI regulations, these agreements must clearly state the scope of investment advice, fee structures, and conflict-of-interest disclosures. The document protects both parties by defining confidentiality rules, liability limits, and how long the arrangement will last. Many Indian businesses use these agreements when working with management consultants, financial advisors, or industry experts.

Use an Advisory Agreement when bringing in external experts to guide crucial business decisions, especially for financial advice, strategic planning, or specialized consulting in India. This agreement becomes essential before sharing sensitive company information or when seeking guidance that could significantly impact your organization's direction.

The timing is particularly important when working with SEBI-registered investment advisors, during mergers and acquisitions, or when seeking expertise for major business transformations. Having this agreement in place before engaging advisors protects confidential information, clarifies payment terms, and establishes clear boundaries for the advisory relationship - helping prevent disputes and misunderstandings later.

• Investment Advisory Agreement: Used for SEBI-regulated financial advisory services, covering portfolio management and investment recommendations
• Startup Advisor Agreement: Tailored for early-stage companies seeking guidance on growth, often including equity compensation terms
• Advisory Board Member Agreement: For establishing formal relationships with strategic advisors who serve on company advisory boards
• Customer Advisory Board Agreement: Focuses on engaging key customers for product feedback and market insights
• Agreement Between Consultant And Company: Broader consulting arrangement covering specific project-based advisory services

• Investment Advisors: SEBI-registered professionals who provide financial advice and sign Advisory Agreements to formalize client relationships
• Corporate Clients: Companies seeking expert guidance on strategy, operations, or investments who engage advisors through these agreements
• Startup Founders: Entrepreneurs who bring in industry veterans as advisors, often offering equity compensation alongside cash
• Legal Teams: In-house counsel or external law firms who draft and review these agreements to ensure compliance and protection
• Board Members: Directors who approve significant advisory engagements, especially for strategic or financial matters
• Compliance Officers: Professionals who ensure advisory relationships meet regulatory requirements and corporate governance standards

• Advisor Details: Gather complete credentials, qualifications, and SEBI registration numbers if applicable
• Scope Definition: List specific services, deliverables, and expected outcomes from the advisory relationship
• Compensation Structure: Document fee arrangements, payment schedules, and any equity components clearly
• Timeline Planning: Set clear start dates, duration, and renewal terms for the engagement
• Confidentiality Needs: Identify sensitive information that needs protection through specific clauses
• Compliance Check: Review relevant SEBI guidelines and industry regulations affecting the advisory relationship
• Documentation: Use our platform to generate a customized, legally-sound agreement that includes all essential elements

• Parties and Qualifications: Full legal names, addresses, and professional credentials of advisor and client
• Services Description: Detailed scope of advisory services, deliverables, and performance metrics
• Compensation Terms: Fee structure, payment schedule, and reimbursement policies
• Confidentiality Provisions: Protection of trade secrets and sensitive business information
• Term and Termination: Duration, renewal options, and conditions for ending the agreement
• Liability Limitations: Clear boundaries of advisor's responsibilities and indemnification terms
• Compliance Statement: References to relevant SEBI regulations and industry standards
• Dispute Resolution: Jurisdiction, governing law, and arbitration procedures under Indian law

An Advisory Agreement differs significantly from an Agency Agreement, though both involve professional services. Let's explore their key distinctions to help you choose the right document for your needs.

• Scope of Authority: Advisory Agreements focus on providing guidance and recommendations, while Agency Agreements grant power to act on behalf of the principal and bind them legally
• Decision-Making Power: Advisors can only suggest actions and strategies, whereas agents have delegated authority to execute transactions and make binding decisions
• Liability Structure: Advisors typically face limited liability for their recommendations, while agents bear greater responsibility for their actions and decisions
• Regulatory Framework: Advisory Agreements often fall under SEBI regulations for investment advice, while Agency Agreements are governed primarily by the Indian Contract Act
• Duration and Commitment: Advisory relationships are usually more flexible and project-based, whereas agency relationships often involve ongoing operational responsibilities