The Intercompany Service Agreement is essential for formalizing service arrangements between affiliated companies. It is commonly used when one group company provides administrative, technical, or operational support to another entity within the corporate structure. Under English and Welsh law, this agreement helps ensure compliance with transfer pricing requirements, maintains clear service standards, and establishes proper governance frameworks. The document typically includes detailed service specifications, pricing mechanisms, performance metrics, and risk allocation provisions.
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1. Parties: Identification of the service provider and recipient companies, including registered addresses and company numbers
2. Background/Recitals: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Key terms used throughout the agreement
4. Services: Detailed description of services to be provided
5. Service Levels: Performance standards and quality requirements
6. Charges and Payment: Fee structure, payment terms, and invoicing procedures
7. Term and Termination: Duration of agreement and termination provisions
8. Confidentiality: Protection of confidential information
9. Liability and Indemnification: Allocation of risks and responsibilities
10. Governing Law and Jurisdiction: Applicable law and dispute resolution
1. Data Protection: Required when services involve processing of personal data - covers GDPR compliance, data processing terms, and data security requirements
2. Intellectual Property Rights: Required when services involve creation or use of intellectual property - covers ownership, licensing and usage rights of IP
3. Staff and Resources: Required when services involve dedicated staff or resources - covers personnel provisions, resource allocation, and any TUPE implications
4. Force Majeure: Recommended for long-term or critical services - covers provisions for unforeseen circumstances and business continuity
5. Change Control: Required when services may need modification over time - covers process for implementing changes to services scope or terms
1. Service Description Schedule: Detailed specification of services to be provided, including scope, deliverables, and exclusions
2. Service Levels Schedule: Detailed performance metrics, KPIs, and service level requirements
3. Charges Schedule: Detailed pricing structure, calculation methodology, and any additional costs or expenses
4. Data Processing Schedule: Details of data processing activities, compliance requirements, and security measures
5. Contact Details Schedule: Key personnel, escalation contacts, and communication protocols
6. Change Control Procedure: Detailed process for implementing changes to services, including request forms and approval procedures
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