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An Introduction to Consultancy Agreements on Clara
An Introduction to Consultancy Agreements on Clara
Updated over a week ago

Set out your consultants’ roles and compensation.

What is a Consultancy Agreement?  

  • A Consultancy Agreement is a contract  between a consultant and your startup, setting out the consultant’s role and compensation. 

  • It’s used to define relationships with third party developers and other service providers, and with full-time team members who are not technically employed by one of your startup’s companies (e.g. their work permit is not issued by one of your startup’s companies) or they are a remote worker.

Why generate this document?

Generate this document because it’s important to have a written agreement detailing your relationship with your consultants: roles, obligations, time commitment and compensation.

What does a Clara Consultancy Agreement do? 

  • Describes the role which the consultant will play, their obligations, time commitment and compensation.

  • Makes it clear that the consultant is taken on as an independent contractor rather than as an employee – an important clarification when it comes to tax and legal obligations.

  • Is governed under English law with a dispute resolution mechanism using expedited ICC arbitration procedures to be held in a place you can select in the form.

Additional info

  • The consultant’s fee (in cash) will be set out in the agreement, but it doesn’t grant any options to acquire shares in your startup’s holding company (use a Grant Agreement for that).

  • If the consultant is a company (and not an individual person), that company must ensure that the person performing these services does so on the terms set out in the agreement. 

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