The Consulting Commission Agreement is essential for businesses in Hong Kong engaging external consultants on a commission basis. This document is particularly relevant when companies seek to formalize relationships with sales consultants, business development professionals, or advisory services providers where compensation is tied to performance or specific outcomes. It addresses key requirements under Hong Kong law, including clear differentiation from employment relationships, data privacy compliance, and tax considerations. The agreement typically includes detailed commission calculations, performance metrics, and service scope while protecting both parties' interests through confidentiality and IP provisions. Used across various industries, from financial services to real estate, this agreement type is crucial for businesses looking to expand their reach through external expertise while maintaining clear contractual boundaries and compliance with Hong Kong's regulatory framework.
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1. Parties: Identification of the principal company and the consultant, including full legal names and registered addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of consultant's appointment and detailed scope of services
5. Commission Structure: Calculation method, payment terms, and conditions for commission
6. Consultant's Obligations: Key responsibilities, performance standards, and compliance requirements
7. Principal's Obligations: Company's responsibilities, including information provision and support
8. Independent Contractor Status: Clear statement of consultant's status as independent contractor
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property: Ownership and rights to works created during the engagement
11. Term and Termination: Duration of agreement and termination provisions
12. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Non-Compete: Restrictions on competitive activities, used when consultant has access to sensitive market information
2. Insurance: Insurance requirements, needed when services involve significant risks or regulatory requirements
3. Data Protection: Specific data handling obligations, required when personal data processing is involved
4. Compliance with Anti-Bribery Laws: Additional compliance obligations, necessary for high-risk industries or public sector work
5. Force Majeure: Provisions for unforeseen circumstances, important in long-term or high-value agreements
6. Assignment and Subcontracting: Rights to transfer obligations, needed when flexibility in service delivery is required
7. Audit Rights: Company's right to audit consultant's records, important for regulated industries or complex commission structures
1. Schedule 1 - Services Description: Detailed description of consulting services and deliverables
2. Schedule 2 - Commission Calculation: Detailed formula and examples of commission calculations
3. Schedule 3 - Performance Metrics: Specific KPIs and performance evaluation criteria
4. Schedule 4 - Approved Expenses: List of reimbursable expenses and approval process
5. Schedule 5 - Reporting Requirements: Format and frequency of required reports
6. Appendix A - Compliance Procedures: Detailed compliance requirements and procedures
7. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and procedures
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