Document background
A Loan Agreement Between Parent Company And Subsidiary is a crucial document for corporate groups operating in Pakistan that need to facilitate intra-group financing. This agreement is used when a parent company provides financial support to its subsidiary through a formal loan arrangement, ensuring compliance with Pakistani corporate law, particularly the Companies Act 2017 and relevant financial regulations. The document is essential for maintaining proper corporate governance and transparency in related party transactions, including specific provisions for interest rates, repayment terms, and security arrangements if applicable. It requires appropriate corporate approvals and must adhere to the Securities and Exchange Commission of Pakistan's requirements for related party transactions. The agreement also needs to consider tax implications, particularly transfer pricing regulations, and may require specific provisions for cross-border transactions if international parties are involved.
