Intercompany Service Agreement Template for Hong Kong

The Intercompany Service Agreement is essential for multinational companies operating in Hong Kong that need to formalize service arrangements between their group entities. This document is particularly relevant when one group company provides administrative, technical, management, or operational services to another group company. It ensures compliance with Hong Kong transfer pricing regulations, maintains clear service standards, and establishes proper documentation for tax authorities. The agreement is designed to protect both parties' interests while recognizing their relationship as group companies, covering aspects such as service scope, quality standards, fees, intellectual property rights, and termination provisions. It's commonly used for shared services arrangements, management services, technical support, and other intra-group support functions.

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

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

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided

5. Service Standards: Quality standards, KPIs, and service levels to be maintained

6. Fees and Payment: Service fees, payment terms, invoicing, and transfer pricing compliance

7. Obligations of Service Provider: Key responsibilities and commitments of the providing entity

8. Obligations of Service Recipient: Key responsibilities and commitments of the receiving entity

9. Intellectual Property: Ownership and licenses of IP created or used in service provision

10. Confidentiality: Protection of confidential information between group companies

11. Data Protection: Compliance with privacy laws and data handling requirements

12. Term and Termination: Duration, renewal, and termination provisions

13. Liability and Indemnification: Risk allocation between parties

14. General Provisions: Standard boilerplate clauses including governing law, notices, etc.