Referral Commission Agreement Template for India

The Referral Commission Agreement is essential for businesses operating in India that wish to formalize their referral partnerships and commission structures. This document is typically used when a company wants to expand its customer base or business opportunities through third-party referrals while maintaining legal compliance and operational clarity. The agreement addresses key aspects such as commission calculations, payment terms, referral tracking mechanisms, and parties' obligations, all within the framework of Indian law. It incorporates necessary provisions to comply with Indian taxation requirements, including TDS (Tax Deducted at Source) regulations, GST implications, and relevant commercial laws. The document is particularly important for businesses seeking to build structured referral networks while mitigating legal risks and ensuring transparent commission arrangements.

1. Parties: Identifies and provides full details of the parties entering into the agreement, including registered addresses and company registration numbers

2. Background: Explains the context of the agreement and the parties' intentions to enter into a referral relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and precision

4. Appointment and Scope: Establishes the referrer's appointment and defines the scope of referral services

5. Referral Process: Details the procedure for making and tracking referrals

6. Commission Structure: Specifies the commission rates, calculation method, and payment terms

7. Payment Terms: Outlines the timing, method, and currency of commission payments

8. Obligations of the Referrer: Lists the referrer's duties, responsibilities, and service standards

9. Obligations of the Company: Details the company's commitments and responsibilities

10. Term and Termination: Specifies the duration of the agreement and conditions for termination

11. Confidentiality: Establishes confidentiality obligations for both parties

12. Non-Solicitation: Prevents parties from soliciting each other's employees or clients

13. Representations and Warranties: Contains standard warranties and representations from both parties

14. Indemnification: Details mutual indemnification obligations

15. Governing Law and Jurisdiction: Specifies applicable law and jurisdiction for dispute resolution

16. General Provisions: Includes standard boilerplate clauses such as force majeure, notices, and amendments