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An Engagement Letter spells out the professional relationship between a service provider and their client in Switzerland, particularly common with lawyers, accountants, and consultants. It defines exactly what services will be performed, how much they'll cost, and when they'll be delivered - creating clarity for both parties from day one.

Under Swiss business practice, these letters protect everyone involved by setting clear expectations, payment terms, and responsibilities. They're especially important for regulated professions like legal and financial services, where Swiss law requires transparent documentation of client relationships. While not always legally mandatory, they've become standard practice for Swiss professionals to avoid misunderstandings and ensure smooth collaboration.

Use an Engagement Letter at the start of any professional service relationship in Switzerland, especially when hiring lawyers, auditors, consultants, or financial advisors. It's particularly crucial before complex projects, high-value services, or long-term professional relationships begin - when clear documentation of scope and terms matters most.

Swiss businesses need these letters when working with regulated professionals, during mergers and acquisitions, for tax advisory services, or any situation requiring detailed professional guidance. Having it in place before work begins protects both parties from misunderstandings about fees, timelines, and deliverables. For regulated industries like banking and financial services, it's often a legal requirement under Swiss compliance rules.

• Legal Engagement Letter: Used by Swiss law firms to outline legal service scope, fees, and client obligations
• Audit Engagement Letter: Details audit procedures, timelines, and responsibilities for financial statement reviews
• Bookkeeping Engagement Letter: Specifies ongoing accounting services, reporting frequency, and record-keeping requirements
• Contract Engagement Letter: For project-based services with defined deliverables and milestones
• Client Engagement Letter: General-purpose template adaptable for various professional services in Switzerland

• Professional Service Providers: Swiss lawyers, accountants, auditors, and consultants draft and issue these letters to formalize client relationships
• Corporate Clients: Companies receiving professional services review and sign Engagement Letters before work begins
• Legal Departments: In-house counsel often review and negotiate terms to protect company interests
• Compliance Officers: Ensure Engagement Letters meet Swiss regulatory requirements, especially in financial services
• Board Members: May need to approve high-value professional engagements and their associated letters
• Finance Teams: Handle payment terms and budget alignment specified in the engagement terms

• Scope Definition: List all specific services, deliverables, and expected outcomes in detail
• Timeline Planning: Document project phases, key milestones, and completion dates
• Fee Structure: Calculate and clearly outline all costs, payment terms, and billing schedules
• Client Information: Gather accurate company details, contact persons, and signing authority
• Regulatory Check: Verify Swiss compliance requirements for your industry sector
• Document Generation: Use our platform to create a legally-sound Engagement Letter that includes all mandatory elements
• Internal Review: Have key stakeholders verify accuracy of scope, terms, and deliverables

• Parties' Details: Full legal names, addresses, and registration numbers of service provider and client
• Service Scope: Detailed description of professional services, deliverables, and exclusions
• Fee Structure: Clear breakdown of costs, payment terms, and billing procedures under Swiss law
• Timeline: Project duration, key milestones, and completion dates
• Confidentiality: Data protection measures compliant with Swiss privacy regulations
• Liability Terms: Professional liability limitations and insurance requirements
• Termination Clause: Conditions for ending the engagement and notice periods
• Dispute Resolution: Swiss jurisdiction and applicable cantonal law specifications

An Engagement Letter differs significantly from an Engagement Agreement in several key aspects under Swiss law. While both documents establish professional relationships, they serve distinct purposes and carry different legal implications.

• Formality Level: Engagement Letters are typically less formal, serving as initial outlines of services, while Engagement Agreements are comprehensive contractual documents with detailed legal provisions
• Legal Binding: Letters primarily communicate intent and basic terms, whereas Agreements create fully enforceable contractual obligations under Swiss contract law
• Scope Detail: Letters outline core services and basic terms, while Agreements include extensive provisions on liability, dispute resolution, and contingencies
• Typical Usage: Letters are common for standard professional services like accounting or consulting, while Agreements are used for complex, high-value, or long-term business relationships
• Amendment Process: Letters can be modified more easily through correspondence, while Agreements typically require formal amendments with specific procedures