Business
Non compete agreement Format & Template
Non compete agreement is a guided template for recording relevant details and terms in writing. Review the document-specific execution and legal requirements before relying on a final PDF.
No signup needed to fill and preview your draft.
What you can set in this draft
- Policy scope and applicability
- Risk and compliance sections
- Governance and enforcement clauses
- Review-ready structured language
- PDF checkout output
About this Non compete agreement
A non-compete agreement is used when a business wants to restrict a person with access to sensitive commercial information from competing in ways the business sees as harmful. In Indian practice, this usually arises in employment, consulting, founder, investor or business-sale contexts. The agreement may seek to prevent the restricted party from joining a competing business, setting up a similar venture, soliciting customers or pulling away employees for a defined period and within a stated commercial scope.
Businesses are drawn to non-compete clauses because confidential information, trade connections and goodwill can be difficult to protect once a key person exits. Senior employees may know pricing logic, supplier structures, product plans or customer relationships; founders or sellers may be even more deeply embedded in the business. A standalone non-compete agreement can therefore be used to record the restriction more visibly than a short clause tucked away in a larger contract, and to combine it with confidentiality, non-solicitation and return-of-material obligations.
However, Indian parties should approach this document with care. Under Indian law, broad restraints of trade are closely scrutinised, especially after employment ends. In practical terms, confidentiality obligations, garden-leave style protections during employment, and narrowly framed non-solicitation or business-transfer restrictions are often easier to justify than a sweeping post-termination ban on earning a livelihood. The commercial objective, duration, scope and relationship context should therefore be drafted carefully and realistically.
Your next step
Start the guided draft
- 1. Answer the guided questions.
- 2. Review the watermarked draft.
- 3. See available checkout and signing options.
- Format
- Signing
- Not required
Template teaser preview
Watermarked template teaser only. It is not your completed document or saved draft.
Loading template teaser preview...
Advantages of using this non compete agreement
- Separately records competitive restrictions in a clearer form
- Can be combined with confidentiality and non-solicitation duties
- Useful for senior hires, consultants, founders and business exits
- Helps protect goodwill, client connections and sensitive know-how
- Encourages thoughtful drafting of scope, duration and remedies
What this document covers
- Identify the protected party and the restricted party, along with the relationship between them
- Define the competing business activities, customers, territories or sectors to which the restriction is meant to apply
- State the duration of the restraint and whether it operates during the engagement, after exit, or both
- Include related protections such as confidentiality, non-solicitation, return of property and notice-period duties
- Set out remedies, including injunctive relief language, while keeping the commercial scope reasonable and specific
- Review the clause carefully to ensure it matches the actual role, transaction or sale context
Applicable laws
The key Indian law for this document is the Indian Contract Act, 1872, especially the principle under Section 27 that agreements in restraint of trade are generally void except to the limited extent recognised by law. This means the enforceability of a non-compete depends heavily on context, drafting and the nature of the restriction. Restrictions during an ongoing engagement may stand on a different footing from broad post-employment restraints, and protections linked to confidentiality, goodwill and business transfers are often analysed differently in practice. A non-compete agreement typically does not require registration merely because it is a restrictive covenant. Stamp duty may still apply as an agreement under the relevant state stamp law. Notarisation is usually optional. Because enforceability is especially fact-sensitive in this area, businesses should take care to keep the restriction proportionate and commercially defensible.
This document is best customised to the exact relationship involved, such as employment, consulting, founder exit or business sale, rather than used with a broad one-size-fits-all restriction.
Frequently asked questions
What is a Non compete agreement used for?
A non-compete agreement is used when a business wants to restrict a person with access to sensitive commercial information from competing in ways the business sees as harmful. In Indian practice, this usually arises in employment, consulting, founder, investor or business-sale contexts. The agreement may seek to prevent the restricted party from joining a competing business, setting up a similar venture, soliciting customers or pulling away employees for a defined period and within a stated commercial scope.
What does a Non compete agreement typically cover?
A Non compete agreement typically covers Identify the protected party and the restricted party, along with the relationship between them, Define the competing business activities, customers, territories or sectors to which the restriction is meant to apply, State the duration of the restraint and whether it operates during the engagement, after exit, or both, Include related protections such as confidentiality, non-solicitation, return of property and notice-period duties, Set out remedies, including injunctive relief language, while keeping the commercial scope reasonable and specific, and Review the clause carefully to ensure it matches the actual role, transaction or sale context.
What formalities apply to a Non compete agreement?
The key Indian law for this document is the Indian Contract Act, 1872, especially the principle under Section 27 that agreements in restraint of trade are generally void except to the limited extent recognised by law. This means the enforceability of a non-compete depends heavily on context, drafting and the nature of the restriction. Restrictions during an ongoing engagement may stand on a different footing from broad post-employment restraints, and protections linked to confidentiality, goodwill and business transfers are often analysed differently in practice. A non-compete agreement typically does not require registration merely because it is a restrictive covenant. Stamp duty may still apply as an agreement under the relevant state stamp law. Notarisation is usually optional. Because enforceability is especially fact-sensitive in this area, businesses should take care to keep the restriction proportionate and commercially defensible.
How long does a Non compete agreement take to complete?
The guided draft is estimated to take Time varies. Allow additional time to review the completed document and confirm any execution formalities.