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A Value Added Reseller Agreement lets businesses legally resell products after adding their own improvements or services. For example, a software company might bundle third-party applications with their custom solutions, or a hardware distributor might add local support and training to imported equipment.

Under Indian contract law, these agreements protect both parties by clearly defining markup limits, service standards, and territorial rights. They typically include GST compliance requirements, intellectual property safeguards, and specific terms for customer warranties. Many Indian IT companies use these agreements to build legitimate distribution channels while maintaining brand quality.

Use a Value Added Reseller Agreement when your business plans to enhance and resell another company's products in the Indian market. This is especially crucial for tech companies adding custom features to existing software, or manufacturers incorporating imported components into their finished goods.

The agreement becomes essential before starting distribution activities, particularly when dealing with GST compliance requirements and territorial rights. It's vital for protecting your investment in product modifications, setting clear pricing structures, and establishing warranty terms. Many Indian IT and manufacturing firms need this agreement to secure exclusive territories and maintain quality standards across their distribution networks.

• Reseller Software License: Focuses specifically on software distribution rights, including source code protection, update policies, and technical support obligations under Indian IT laws.
• Software License Reseller Agreement: Broader in scope, covering both software licensing and value-added services like customization, training, and implementation support, with detailed revenue-sharing structures and GST compliance terms.

• Original Manufacturers: Companies that create products and want to expand their reach in India through value-added distribution channels, often international tech firms or equipment makers.
• Value Added Resellers: Indian businesses that enhance products with local features, support, or services before reselling them to end customers.
• Legal Teams: In-house counsel or external law firms who draft and review these agreements to ensure GST compliance and protect IP rights.
• Channel Managers: Professionals who oversee reseller relationships and ensure compliance with agreement terms.
• End Customers: Businesses or consumers who purchase the enhanced products, protected by warranty and support terms.

• Product Details: List all products, their specifications, and value-added modifications you'll provide under Indian standards.
• Pricing Structure: Document your cost price, permitted markups, and GST implications for each product category.
• Territory Rights: Define exact geographical areas for distribution and any exclusive rights within India.
• Service Standards: Outline support levels, warranty terms, and quality benchmarks you'll maintain.
• Documentation: Gather business registrations, GST numbers, and import licenses if needed.
• Legal Framework: Our platform generates custom agreements that include all these elements while ensuring compliance with Indian contract law.

• Parties and Scope: Full legal names, addresses, GST numbers, and detailed description of value-added services.
• Product Details: Specifications, modifications allowed, and quality standards under Indian manufacturing norms.
• Territory Rights: Clear geographical boundaries and exclusivity terms as per Indian competition laws.
• Financial Terms: Pricing structure, payment terms, and GST compliance requirements.
• IP Protection: Copyright, trademark usage rights, and confidentiality provisions.
• Termination Clauses: Notice periods and post-termination obligations under Indian contract law.
• Dispute Resolution: Indian jurisdiction, arbitration venue, and governing law specifications.

A Value Added Reseller Agreement differs significantly from an Agency Agreement, though both involve product distribution. Here are the key distinctions in the Indian business context:

• Ownership and Billing: VARs purchase products outright and resell them with added value, while agents never own the products and earn commissions on sales.
• Service Scope: VARs modify or enhance products before resale, adding significant value through customization or bundling. Agents simply sell products as-is.
• Legal Liability: VARs assume full responsibility for product modifications and customer support under Indian consumer protection laws. Agents have limited liability, mainly for accurate representation.
• GST Implications: VARs must manage their own GST compliance for both purchase and resale. Agents typically handle only service tax on their commission income.
• Brand Control: VARs have more flexibility in marketing and pricing, while agents must strictly follow the principal's branding and pricing guidelines.