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Intercompany Data Processing Agreement Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that regulates personal data processing activities between affiliated companies within the same corporate group. This agreement ensures compliance with the Personal Data (Privacy) Ordinance (PDPO) while establishing clear roles, responsibilities, and obligations between group entities acting as data controller and data processor. It includes detailed provisions for data security, breach notification, audit rights, and cross-border data transfers, tailored to the specific requirements of Hong Kong's data protection regime and the intra-group relationship context.

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What is a Intercompany Data Processing Agreement?

The Intercompany Data Processing Agreement is essential for multinational companies operating in Hong Kong that need to establish formal arrangements for processing personal data within their group structure. This document becomes necessary when one group entity processes personal data on behalf of another, requiring compliance with Hong Kong's Personal Data (Privacy) Ordinance (PDPO) and associated regulations. The agreement is particularly important in the context of Hong Kong's data protection regime, which requires documented arrangements for data processing activities, even between affiliated entities. It addresses key aspects such as data security measures, breach reporting procedures, audit requirements, and cross-border transfer mechanisms, while taking into account the intra-group nature of the relationship. This template is designed to balance regulatory compliance with practical considerations of intra-group operations.

What sections should be included in a Intercompany Data Processing Agreement?

1. Parties: Identification of the group companies involved - typically one entity as data controller and another as data processor

2. Background: Context of the agreement, relationship between the parties as group companies, and purpose of the data processing arrangement

3. Definitions: Key terms including Personal Data, Processing, Controller, Processor, Applicable Data Protection Laws, Group Companies, etc.

4. Scope and Purpose of Processing: Detailed description of the processing activities, types of personal data, and purposes for which data will be processed

5. Obligations of the Data Controller: Controller's responsibilities including providing instructions, ensuring legal basis for processing, and responding to data subject requests

6. Obligations of the Data Processor: Processor's duties including processing only on documented instructions, maintaining confidentiality, implementing security measures

7. Security Measures: Technical and organizational measures required to protect personal data

8. Sub-processing: Conditions and requirements for engaging other group companies or external sub-processors

9. Data Breach Notification: Procedures for reporting and handling personal data breaches within the group

10. Audit Rights: Controller's rights to verify compliance, considering the intra-group nature of the relationship

11. Term and Termination: Duration of the agreement and termination provisions

12. Data Return and Deletion: Requirements for handling personal data upon termination

13. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction

What sections are optional to include in a Intercompany Data Processing Agreement?

1. Cross-border Transfers: Required if personal data will be transferred outside of Hong Kong, specifying transfer mechanisms and safeguards

2. Group Data Protection Standards: Optional section referring to internal group policies and standards for data protection

3. Cost Allocation: Optional section for specifying any inter-company charges for processing services

4. Insurance: Optional section for specifying insurance requirements, though less common in intra-group agreements

5. Force Majeure: Optional clause defining circumstances beyond parties' control, though less formal in intra-group context

6. Relationship with Other Group Agreements: Optional section clarifying interaction with other intra-group agreements

What schedules should be included in a Intercompany Data Processing Agreement?

1. Schedule 1 - Processing Activities: Detailed description of processing activities, categories of data subjects, types of personal data, and processing purposes

2. Schedule 2 - Technical and Organizational Measures: Detailed security measures and controls implemented to protect personal data

3. Schedule 3 - Approved Sub-processors: List of approved sub-processors within or outside the group

4. Schedule 4 - Transfer Mechanisms: Details of mechanisms used for international data transfers, if applicable

5. Appendix A - Data Breach Response Plan: Detailed procedures for handling and reporting data breaches

6. Appendix B - Standard Forms: Templates for routine matters such as sub-processor approval requests, audit notifications, etc.

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Cost

Free to use

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