Document background
The Intercompany Administrative Services Agreement is essential for corporate groups operating in the United States where one entity provides administrative support services to affiliated companies. This document is typically used when centralizing administrative functions such as HR, IT, accounting, or other back-office operations to achieve operational efficiency and cost optimization. It ensures compliance with U.S. transfer pricing regulations, state corporate laws, and federal requirements while establishing clear service expectations and responsibilities. The agreement is particularly important for maintaining proper corporate governance, documenting arm's length transactions, and managing intercompany relationships in accordance with U.S. legal and tax requirements. It includes detailed service descriptions, performance metrics, pricing mechanisms, and compliance obligations.
