Document background
The Intercompany Service Agreement is essential for formalizing service arrangements between related companies operating within Pakistan or cross-border. This document is typically used when one company in a corporate group provides administrative, technical, management, or other services to another group company. It addresses critical aspects such as service scope, performance metrics, pricing mechanisms (ensuring compliance with transfer pricing regulations), and payment terms. The agreement must comply with Pakistani legal requirements, including the Companies Act 2017, tax regulations, and where applicable, State Bank of Pakistan guidelines for cross-border transactions. It's particularly important for documenting related party transactions, maintaining corporate governance standards, and satisfying regulatory reporting requirements in Pakistan.
