Starting a Consultancy: How Do We Create Effective Agreements for Partners and Clients?

Starting a Consultancy: Agreement Needs

We are about five people planning to start a consultancy. We need:

1. Business partner agreement on profit sharing and the role of each business partner.
2. Client Agreement
3. Candidate Agreement

Our business model is that we will have registration fees for all the candidates. Once a candidate is placed in an organization, the client has to pay the first month's salary to our HR agency. We will charge 15 days' salary and hand over the remaining 15 days' salary to the candidate. We need help in creating agreements for all the factors mentioned above. Kindly assist and suggest.

Regards, Priya.

Location: Bengaluru, India

Creating Agreements for HR Consultancy

Starting a consultancy involves setting up various agreements to ensure smooth operations and protect the interests of all parties involved. Here's a practical guide on creating the necessary agreements for your HR consultancy in Bengaluru, India:

1. Business Partner Agreement:
- Define the roles and responsibilities of each business partner clearly.
- Specify the profit-sharing structure, including how profits will be distributed among partners.
- Outline decision-making processes and mechanisms for resolving conflicts.
- Include clauses on partner exits, buyouts, and dispute resolution mechanisms.

2. Client Agreement:
- Clearly state the services your consultancy will provide to clients.
- Specify payment terms, including the registration fees and the first month's salary from the client upon successful candidate placement.
- Include clauses on confidentiality, data protection, and intellectual property rights.
- Outline the process for handling client feedback, complaints, and termination of services.

3. Candidate Agreement:
- Detail the registration fees and the terms of engagement for candidates.
- Clearly explain the salary distribution model where the consultancy retains a portion and the candidate receives the rest.
- Include clauses on candidate confidentiality, non-compete agreements, and termination of services.
- Specify the responsibilities of candidates during the recruitment process and after placement.

Remember to consult with legal experts to ensure that the agreements comply with relevant labor laws and regulations in India, particularly concerning fee structures, profit-sharing, and candidate rights. Tailor the agreements to suit the specific needs and circumstances of your consultancy to establish a strong foundation for your business relationships.