NDA for freelancers in India: what to check before you sign

A non-disclosure agreement is enforceable in India as an ordinary contract, and a freelancer can sign one safely if five things are right: a clear definition of confidential information, the standard exclusions, a fixed term, no hidden non-compete, and a carve-out for your own tools and portfolio. Restraints that stop you working for others after the project are generally void under Section 27 of the Indian Contract Act, 1872.

Is an NDA legally enforceable in India?

Yes. India has no separate trade secrets statute, so confidentiality is protected mainly through contract and through the courts' equitable jurisdiction over breach of confidence. A properly drafted NDA is enforceable like any other agreement under the Indian Contract Act, 1872.

Remedies for breach include an injunction to stop further disclosure and damages for loss, which is why the definition of what is protected needs to be precise.

How should confidential information be defined?

Narrowly enough that you can comply. Look for a definition tied to information disclosed for the project and marked or reasonably understood as confidential. Be cautious with wording that covers “all information of any kind” with no limit.

A definition you cannot work with in practice is a risk for you, because almost anything you later do could be said to use it.

What exclusions should every NDA have?

Four are standard: information already public, information you already knew, information you developed independently, and information you received lawfully from a third party. There should also be a carve-out for disclosure required by law or a court.

If these are missing, ask for them. They are routine and a reasonable client will not object.

How long should the confidentiality obligation last?

A fixed period, commonly two to five years after the project ends, is typical for ordinary business information. Genuine trade secrets may be protected for as long as they remain secret.

Be wary of obligations stated to last forever for everything. A defined term is easier to comply with and to enforce.

Can an NDA stop me working for a competitor?

Generally not after the engagement ends. Section 27 of the Indian Contract Act, 1872 makes an agreement that restrains anyone from exercising a lawful profession, trade or business void to that extent. In Superintendence Company of India v. Krishan Murgai (1980) and Percept D'Mark (India) v. Zaheer Khan (2006), the Supreme Court treated post-termination restraints as void.

Restrictions that apply only during the engagement, and duties not to misuse confidential information, are treated differently. Read any non-compete or non-solicitation clause placed inside an NDA carefully.

What should a freelancer add to a client NDA?

Ask for the NDA to be mutual if you are sharing your own methods or pricing. Add that your pre-existing tools, code and general skills are not the client's confidential information, and agree whether you may list the client or show the work in your portfolio.

Ownership of what you create is a separate question from confidentiality. Deal with it expressly, as explained in who owns freelance work.

Do I need a separate NDA or is a contract clause enough?

For most projects a confidentiality clause inside the services agreement is enough. A separate NDA makes sense when information is shared before the engagement is agreed, such as during a pitch.

The freelance contract template includes a confidentiality clause you can adapt.

Frequently asked questions

Should a freelancer sign an NDA?

Usually yes, if the definition of confidential information is reasonable, the standard exclusions are included, the term is fixed and there is no hidden non-compete.

Is a non-compete clause valid for freelancers in India?

A restraint that applies after the engagement ends is generally void under Section 27 of the Indian Contract Act, 1872. Restrictions during the engagement may be enforceable.

Does an NDA need to be on stamp paper?

An NDA is valid without stamp paper, but stamp duty may apply under the Indian Stamp Act, 1899 and state law, which can affect its admissibility in evidence until duty is paid.

Can I show NDA-covered work in my portfolio?

Only with the client's permission or an express portfolio clause. Without it, showing the work may breach the NDA.

Related guides

  • Who owns the work a freelancer creates? Copyright in India
  • Freelance contract template and format for India
  • How to make a freelance contract in India