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Startup Consulting Agreement for Saudi Arabia

Startup Consulting Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions under which a consultant or consulting firm provides professional services to a startup company. The document outlines the scope of consulting services, compensation terms, confidentiality obligations, intellectual property rights, and other key provisions while ensuring compliance with Saudi commercial law, labor regulations, and relevant royal decrees. It incorporates specific considerations for the Saudi startup ecosystem and includes provisions for both traditional consulting arrangements and modern business practices aligned with Vision 2030 initiatives.

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What is a Startup Consulting Agreement?

The Startup Consulting Agreement is essential for formalizing professional advisory relationships within Saudi Arabia's growing entrepreneurial ecosystem. This document is typically used when a startup seeks specialized expertise, strategic guidance, or technical advisory services from external consultants. It provides a legal framework that protects both parties' interests while ensuring compliance with Saudi Arabian regulations, including the Commercial Law (Royal Decree No. M/32) and relevant provisions of Vision 2030 initiatives. The agreement covers crucial aspects such as service scope, compensation structures (including potential equity arrangements), confidentiality measures, intellectual property rights, and dispute resolution mechanisms. It's particularly relevant given the kingdom's push toward economic diversification and the increasing need for professional consulting services in the startup sector.

What sections should be included in a Startup Consulting Agreement?

1. Parties: Identification of the consultant and the startup company, including full legal names, registration details, and addresses

2. Background: Context of the agreement, including the startup's business nature and the consultant's expertise

3. Definitions: Key terms used throughout the agreement, ensuring clarity and consistent interpretation

4. Scope of Services: Detailed description of consulting services to be provided, including specific deliverables and objectives

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Fees and Payment Terms: Compensation structure, payment schedule, expenses, and invoicing procedures

7. Obligations of the Consultant: Consultant's commitments, including quality of service, availability, and professional standards

8. Obligations of the Company: Company's commitments, including providing necessary information and resources

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property Rights: Ownership and usage rights of pre-existing and newly created intellectual property

11. Representations and Warranties: Standard assurances from both parties regarding capacity and authority

12. Limitation of Liability: Boundaries of consultant's liability and indemnification provisions

13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Startup Consulting Agreement?

1. Non-Competition: Restrictions on consultant's ability to work with competitors, used when sharing sensitive market information

2. Non-Solicitation: Prevents consultant from hiring company employees or approaching clients, relevant for long-term engagements

3. Equity Compensation: Terms for any equity-based compensation, used when part of payment is in shares or options

4. Performance Metrics: Specific KPIs and evaluation criteria, useful for performance-based compensation arrangements

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or critical service arrangements

6. Compliance with Islamic Law: Specific provisions ensuring Shariah compliance, necessary for certain Saudi Arabian contexts

7. Data Protection: Specific data handling and protection requirements, needed when dealing with personal or sensitive data

8. Insurance Requirements: Specific insurance coverage requirements, important for high-risk consulting services

What schedules should be included in a Startup Consulting Agreement?

1. Schedule A - Scope of Services: Detailed breakdown of consulting services, deliverables, and timelines

2. Schedule B - Fee Structure: Detailed compensation terms, including rate cards, milestone payments, and expense policies

3. Schedule C - Key Personnel: List of key consultant team members and their roles, if applicable

4. Schedule D - Service Levels: Specific performance standards and metrics for service delivery

5. Schedule E - Compliance Requirements: Specific regulatory or industry compliance requirements applicable to the services

6. Appendix 1 - Reporting Templates: Standard formats for progress reports and documentation

7. Appendix 2 - Communication Protocol: Procedures for regular communications and escalation paths

8. Appendix 3 - Confidentiality Agreement: Detailed NDA terms and procedures for handling confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



































Clauses









































Relevant Industries

Technology

E-commerce

Financial Technology

Healthcare Technology

Education Technology

Clean Energy

Artificial Intelligence

Software Development

Digital Media

Professional Services

Biotechnology

Logistics and Supply Chain

Retail Innovation

Smart Manufacturing

Agricultural Technology

Relevant Teams

Legal

Finance

Operations

Strategy

Business Development

Compliance

Innovation

Project Management

Executive Leadership

Investment

Procurement

Risk Management

Relevant Roles

CEO

Founder

Co-founder

Legal Counsel

Business Development Manager

Chief Financial Officer

Strategy Director

Operations Manager

Startup Consultant

Business Advisor

Technical Consultant

Project Manager

Innovation Director

Compliance Officer

Chief Technology Officer

Investment Manager

Venture Capital Analyst

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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