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Intercompany Agreement Between Parent And Subsidiary Template for India

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Key Requirements PROMPT example:

Intercompany Agreement Between Parent And Subsidiary

"I need an Intercompany Agreement between Parent and Subsidiary for our Indian manufacturing parent company to provide management services and manufacturing support to its newly established subsidiary, ensuring compliance with transfer pricing regulations and including detailed service level agreements, with the arrangement to commence from March 1, 2025."

Document background
The Intercompany Agreement Between Parent And Subsidiary is a crucial document required when establishing or formalizing the business relationship between related corporate entities in India. It becomes necessary when a parent company exercises control over a subsidiary and there are regular business interactions, service provisions, or resource sharing between the entities. The agreement ensures compliance with Indian regulatory requirements, particularly under the Companies Act 2013, Income Tax Act 1961, and transfer pricing regulations. It typically includes detailed provisions for service arrangements, financial terms, governance structures, and compliance mechanisms. This document is essential for maintaining transparent corporate relationships, ensuring proper group policies implementation, and establishing clear operational frameworks while meeting regulatory obligations in India.
Suggested Sections

1. Parties: Identification of the parent and subsidiary companies, including registration details and addresses

2. Background: Description of the parent-subsidiary relationship, purpose of the agreement, and context of the arrangement

3. Definitions: Key terms used throughout the agreement, including corporate group definitions, services, and technical terms

4. Scope of Agreement: Overall scope of the intercompany relationship and services/arrangements covered

5. Rights and Obligations: Detailed responsibilities and rights of both parent and subsidiary companies

6. Financial Terms: Pricing, payment terms, invoicing, and transfer pricing compliance

7. Governance and Control: Management structure, reporting requirements, and decision-making processes

8. Intellectual Property Rights: Ownership and usage rights of IP between parent and subsidiary

9. Confidentiality: Protection of confidential information exchanged between parties

10. Term and Termination: Duration of agreement and circumstances for termination

11. Compliance and Regulatory: Compliance with Indian laws, including Companies Act and tax regulations

12. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Service Level Agreement: Include when specific performance metrics need to be maintained for services provided

2. Staff and Secondment: Include when employees will be shared or transferred between entities

3. Group Cost Allocation: Include when there are shared costs across multiple group entities

4. Technology and Data Transfer: Include when IT systems or data sharing is part of the arrangement

5. Insurance Requirements: Include when specific insurance coverage needs to be maintained

6. Foreign Exchange Provisions: Include when cross-border transactions are involved

7. Audit Rights: Include when specific audit requirements beyond statutory requirements are needed

8. Business Continuity: Include when critical services or operations are being provided

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of all services or arrangements covered

2. Schedule 2 - Charging Method and Rates: Detailed pricing structure and calculation methodology

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Contact Details: Key personnel and contact information for both parties

5. Schedule 5 - Compliance Requirements: Specific regulatory and compliance obligations

6. Schedule 6 - Group Policies: Applicable parent company policies binding on subsidiary

7. Appendix A - Transfer Pricing Documentation: Supporting documentation for transfer pricing compliance

8. Appendix B - Corporate Authorizations: Board resolutions and corporate approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































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Relevant Industries

Manufacturing

Information Technology

Financial Services

Telecommunications

Pharmaceutical

Retail

Energy

Real Estate

Automotive

Consumer Goods

Professional Services

Healthcare

Infrastructure

Relevant Teams

Legal

Finance

Compliance

Corporate Affairs

Tax

Internal Audit

Risk Management

Operations

Corporate Governance

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Company Secretary

Head of Compliance

Finance Director

Tax Director

Corporate Affairs Manager

Transfer Pricing Manager

Group Financial Controller

Operations Director

Risk Manager

Internal Audit Manager

Corporate Governance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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