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Intercompany Contract

Intercompany Contract Template for Malaysia

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Key Requirements PROMPT example:

Intercompany Contract

"I need an Intercompany Contract to establish a shared services arrangement between our Malaysian parent company and its three local subsidiaries, covering IT support, HR services, and accounting functions, with the agreement to commence from March 1, 2025."

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Document background
The Intercompany Contract serves as a crucial legal framework for formalizing relationships between related corporate entities operating in Malaysia. This document is essential when establishing structured arrangements for shared services, resource allocation, financial transactions, or operational support between group companies. It ensures compliance with Malaysian regulatory requirements, including the Companies Act 2016, tax regulations, and transfer pricing rules. The contract is particularly important for multinational corporations with Malaysian operations, domestic corporate groups, and companies establishing regional headquarters or shared service centers in Malaysia. It helps demonstrate arm's length transactions, maintains proper corporate governance, and provides clear accountability and risk allocation between related entities.
Suggested Sections

1. Parties: Identification of the contracting companies, including registration numbers and registered addresses

2. Background: Context of the agreement, relationship between the parties, and purpose of the contract

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Scope of Services/Arrangement: Detailed description of the intercompany arrangement, services, or relationship

5. Duration and Term: Contract period, renewal terms, and termination provisions

6. Financial Arrangements: Pricing, payment terms, invoicing, and financial obligations

7. Compliance and Reporting: Regulatory compliance requirements, reporting obligations, and record-keeping

8. Confidentiality: Protection of confidential information and trade secrets

9. Intellectual Property: Ownership and usage rights of IP between the companies

10. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

11. Execution: Signature blocks and execution formalities

Optional Sections

1. Personnel and Resources: Used when the arrangement involves shared employees or resources

2. Data Protection: Required when personal data is processed or transferred between companies

3. Tax Matters: Included when specific tax arrangements or transfer pricing considerations apply

4. Service Levels: Needed when specific performance metrics are required

5. Audit Rights: Important when regular auditing of services or financials is required

6. Force Majeure: Optional but recommended for long-term arrangements

7. Insurance: Required when specific insurance coverage needs to be maintained

Suggested Schedules

1. Schedule 1 - Services Description: Detailed specification of services or arrangements

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing structure, calculation methods, and payment procedures

3. Schedule 3 - Service Levels and KPIs: Performance metrics and measurement criteria

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

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

6. Appendix A - Required Forms: Standard forms for notices, service requests, or reports

7. Appendix B - Technical Requirements: Technical specifications or requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






































Clauses




































Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Retail

Energy

Telecommunications

Professional Services

Logistics

Consumer Goods

Real Estate

Industrial Services

Relevant Teams

Legal

Finance

Compliance

Tax

Treasury

Operations

Commercial

Risk Management

Internal Audit

Corporate Secretarial

Procurement

Human Resources

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Head of Compliance

Financial Controller

Tax Manager

Corporate Secretary

Operations Director

Commercial Director

Risk Manager

Internal Audit Manager

Treasury Manager

Group Financial Controller

Head of Shared Services

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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