Document background
The Inter Company Loan Agreement is a crucial document for corporate groups operating in or through Switzerland, facilitating internal financing arrangements between related entities. It is particularly relevant in the context of Switzerland's position as a major international business hub, where complex corporate structures often require internal funding solutions. The agreement must comply with Swiss legal requirements, including the Swiss Code of Obligations and federal tax regulations, particularly regarding arm's length principles and transfer pricing. This document is typically used when one group company has excess funds to lend to another group company requiring financing, whether for operational needs, expansion, or specific projects. The agreement includes detailed provisions on loan terms, interest calculations, repayment schedules, and security arrangements, while ensuring compliance with Swiss regulatory requirements and corporate governance standards.
