Document background
Inter Company Agreements are fundamental documents used to formalize and govern relationships between affiliated entities within a corporate group structure in the United States. These agreements are essential for establishing clear operational frameworks, ensuring tax compliance, particularly with transfer pricing regulations, and maintaining proper corporate governance. They become necessary when related entities engage in regular business transactions, share resources, or provide services to each other. The agreements typically cover aspects such as service scope, pricing mechanisms, intellectual property rights, and compliance requirements. Under US jurisdiction, these agreements must comply with federal and state laws, including IRS regulations, corporate law, and relevant industry-specific requirements. They are particularly crucial for audit purposes, tax documentation, and demonstrating proper corporate governance to regulatory authorities.
