Intercompany Shared Services Agreement Template for Pakistan

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Key Requirements PROMPT example:

Intercompany Shared Services Agreement

"I need an Intercompany Shared Services Agreement for our Pakistani manufacturing group, where our tech subsidiary will provide IT support services to five other group companies starting March 2025, with specific focus on cybersecurity compliance and data protection requirements."

Document background
The Intercompany Shared Services Agreement is essential for corporate groups operating in Pakistan who wish to centralize their support functions and optimize resource allocation across group entities. This document is typically used when a company within a group provides administrative, technical, or operational services to other group members. It addresses key requirements under Pakistani law, including compliance with the Companies Act 2017, transfer pricing regulations, and corporate governance requirements. The agreement covers critical aspects such as service scope, performance standards, pricing mechanisms, governance structures, and regulatory compliance. It is particularly important for multinational corporations with Pakistani operations and local groups seeking to streamline their operations while maintaining compliance with local legal and tax requirements.
Suggested Sections

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

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

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

5. Term and Termination: Duration of the agreement, renewal terms, and termination rights

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

7. Charges and Payment Terms: Pricing methodology, payment terms, invoicing, and transfer pricing compliance

8. Governance and Reporting: Management structure, reporting requirements, and periodic review processes

9. Confidentiality: Protection of confidential information and trade secrets

10. Data Protection: Data handling, privacy requirements, and compliance with data protection laws

11. Intellectual Property: Ownership and licensing of IP rights in relation to the services

12. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification provisions

13. Force Majeure: Events excusing performance and related procedures

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

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

Optional Sections

1. Compliance with Group Policies: Include when specific group-wide policies need to be referenced and enforced

2. Regulatory Compliance: Add for regulated industries or when specific regulatory requirements apply

3. Business Continuity: Include when services are critical to business operations

4. Staff and Personnel: Add when staff transfers or secondments are part of the service arrangement

5. Insurance: Include when specific insurance requirements need to be maintained

6. Anti-Corruption and Sanctions: Add for international group companies or when dealing with sensitive jurisdictions

7. Environmental Compliance: Include when services have environmental implications

8. Change Control: Add when services are likely to require frequent modifications

Suggested Schedules

1. Schedule 1 - Service Descriptions: Detailed description of each service category, including scope and exclusions

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and reporting requirements

3. Schedule 3 - Charges and Pricing Methodology: Detailed pricing structure, cost allocation, and transfer pricing documentation

4. Schedule 4 - Governance Structure: Detailed roles, responsibilities, and escalation procedures

5. Schedule 5 - Contact Details: Key personnel and contact information for both parties

6. Schedule 6 - Required Consents: List of necessary regulatory or third-party consents

7. Schedule 7 - Transition Plan: Process for implementing or transferring services

8. Schedule 8 - Exit Plan: Procedures for service termination and transition to alternative providers

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

10. Appendix B - Security Requirements: Detailed IT and physical security requirements

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

Banking and Financial Services

Manufacturing

Technology and IT Services

Telecommunications

Professional Services

Energy and Utilities

Healthcare

Retail and Consumer Goods

Logistics and Transportation

Real Estate and Construction

Relevant Teams

Legal

Finance

Tax

Compliance

Operations

Risk Management

Corporate Secretarial

Shared Services

Internal Audit

Treasury

Human Resources

Information Technology

Procurement

Accounting

Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Head of Legal

Head of Shared Services

Group Financial Controller

Transfer Pricing Manager

Corporate Counsel

Compliance Officer

Operations Director

Group Tax Manager

Service Delivery Manager

Commercial Director

Chief Operating Officer

Head of Risk Management

Group Company Secretary

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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