Document background
The Intercompany Distribution Agreement is essential for corporate groups operating in India that wish to formalize their internal distribution arrangements. This document is typically used when a company within a group wants to appoint another group company as a distributor of its products in a specific territory. It addresses unique aspects of related-party transactions, including transfer pricing compliance, tax considerations, and regulatory requirements under Indian law. The agreement includes detailed provisions for product supply, territorial rights, pricing mechanisms, and operational procedures, while considering the special relationship between the parties as members of the same corporate group. This document is particularly important for demonstrating arm's length transactions to tax authorities and ensuring compliance with Indian corporate and commercial laws.
