Intercompany Agreement For Services Template for United Arab Emirates

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Key Requirements PROMPT example:

Intercompany Agreement For Services

"I need an Intercompany Agreement for Services under UAE law to formalize IT support services between our Dubai-based parent company and its Abu Dhabi subsidiary, with the agreement to commence from March 1, 2025 and include comprehensive data protection provisions."

Document background
The Intercompany Agreement for Services is essential for formalizing service arrangements between related corporate entities in the UAE. It is particularly relevant when one company within a corporate group provides administrative, technical, management, or other services to another group company. The agreement ensures compliance with UAE laws, including Federal Law No. 18 of 1993 (Commercial Transactions Law) and Federal Decree-Law No. 47 of 2022 (Corporate Tax Law), particularly regarding transfer pricing requirements. It defines service levels, payment terms, and governance structures while protecting both parties' interests. This document is crucial for establishing clear accountability, ensuring regulatory compliance, and maintaining transparent financial arrangements between related entities operating in or through the UAE.
Suggested Sections

1. Parties: Identification of the service provider and service recipient companies, including full legal names, registration details, and addresses

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

3. Definitions: Defined terms used throughout the agreement, including Services, Service Levels, Charges, etc.

4. Scope of Services: Detailed description of services to be provided, including service standards and delivery requirements

5. Duration and Termination: Term of the agreement, renewal provisions, and circumstances for termination

6. Service Provider Obligations: Key responsibilities and commitments of the service provider

7. Service Recipient Obligations: Key responsibilities and commitments of the service recipient

8. Charges and Payment Terms: Fee structure, payment schedule, invoicing requirements, and payment methods

9. Service Levels: Performance standards, KPIs, and measurement criteria

10. Intellectual Property Rights: Ownership and usage rights of IP created or used in service delivery

11. Confidentiality: Protection and handling of confidential information exchanged between parties

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Governing Law and Dispute Resolution: Choice of UAE law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Data Protection: Required when services involve processing of personal data or sensitive information

2. Compliance with Laws: Detailed section needed when services are in regulated industries or involve specific regulatory requirements

3. Staff and Personnel: Required when services involve deployment or secondment of personnel

4. Insurance: Needed when services involve significant operational risks or physical presence

5. Business Continuity: Important for critical services or when required by group policies

6. Audit Rights: Required for regulated services or when significant compliance obligations exist

7. Change Control: Needed for complex services or long-term agreements where scope may evolve

8. Exit Management: Important for complex services or when transition periods may be needed

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services, including scope, deliverables, and exclusions

2. Schedule 2 - Service Levels: Detailed service level requirements, measurement criteria, and reporting requirements

3. Schedule 3 - Charges: Detailed fee structure, calculation methodology, and cost allocation principles

4. Schedule 4 - Key Personnel: List of key personnel from both parties responsible for service delivery and management

5. Schedule 5 - Governance: Service management structure, meeting schedules, escalation procedures

6. Appendix A - Form of Reports: Templates for required service reports and performance metrics

7. Appendix B - Contact Details: Contact information for key personnel and authorized representatives

8. Appendix C - Service Request Procedure: Process for requesting additional or modified services

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Manufacturing

Energy

Healthcare

Real Estate

Retail

Professional Services

Telecommunications

Logistics

Construction

Hospitality

Relevant Teams

Legal

Finance

Tax

Compliance

Operations

Commercial

Corporate Governance

Shared Services

Company Secretarial

Risk Management

Internal Audit

Relevant Roles

Chief Legal Officer

Head of Legal

Legal Counsel

Chief Financial Officer

Finance Director

Tax Director

Commercial Director

Operations Director

Compliance Officer

Contract Manager

Company Secretary

Head of Shared Services

Group Services Manager

Transfer Pricing Manager

Corporate Governance Manager

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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