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Intercompany Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Intercompany Contract

"I need an Intercompany Contract governed by Saudi Arabian law for establishing a shared services arrangement between our Riyadh-based parent company and three local subsidiaries, covering IT, HR, and accounting services, to be effective from March 1, 2025."

Document background
An Intercompany Contract is essential for formalizing and managing relationships between affiliated companies operating within Saudi Arabia or between Saudi and international group entities. This document type is particularly important in the Saudi Arabian context due to specific regulatory requirements, including Companies Law compliance, Sharia principles adherence, and local tax regulations particularly regarding transfer pricing and VAT. The contract typically covers areas such as service provision, resource sharing, financial arrangements, and governance structures. It's commonly used when establishing shared services arrangements, implementing group-wide policies, or structuring internal business operations. The document must account for Saudi Arabia's unique legal framework while maintaining alignment with international group standards and practices.
Suggested Sections

1. Parties: Identification of the contracting companies, including full legal names, commercial registration numbers, and registered addresses

2. Background: Context of the agreement, relationship between the parties, and general purpose of the arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpreting the contract

4. Scope of Services/Relationship: Detailed description of the intercompany arrangement, services, or relationship structure

5. Duration and Term: Contract period, commencement date, and renewal terms

6. Financial Terms: Pricing, payment terms, invoicing requirements, and currency specifications

7. Performance Standards: Service levels, quality requirements, and performance metrics

8. Compliance Requirements: Obligations to comply with relevant laws, regulations, and Sharia principles

9. Confidentiality: Protection and handling of confidential information between parties

10. Governance: Management structure, reporting requirements, and decision-making processes

11. Termination: Grounds for termination, notice requirements, and consequences of termination

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

13. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Intellectual Property Rights: Required when the arrangement involves sharing, creating, or using intellectual property

2. Staff and Personnel: Needed when staff transfers or shared personnel arrangements are involved

3. Data Protection: Required when personal data or sensitive information will be shared between parties

4. Insurance: Relevant when specific insurance coverage is required for the services or relationship

5. Force Majeure: Optional clause for circumstances beyond parties' control, though commonly included

6. Anti-corruption and Ethics: Additional compliance requirements for high-risk or regulated activities

7. Parent Company Guarantee: Required when financial backing from a parent company is necessary

8. Change Control: Needed for long-term contracts where services or terms may need adjustment

Suggested Schedules

1. Schedule 1 - Services Description: Detailed specification of services or arrangements between the parties

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing structure, calculation methods, and payment procedures

3. Schedule 3 - Service Levels: Specific performance metrics, measurement methods, and reporting requirements

4. Schedule 4 - Governance Procedures: Detailed procedures for contract management and oversight

5. Schedule 5 - Key Personnel: List of key contacts and responsible personnel from each party

6. Schedule 6 - Technical Requirements: Any technical specifications or systems requirements

7. Appendix A - Required Forms: Standard forms for notices, service requests, or reports

8. Appendix B - Compliance Certificates: Required regulatory or compliance documentation

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 | Serial Founder & Legal AI Author

Relevant legal definitions

















































Clauses





































Relevant Industries

Manufacturing

Financial Services

Technology

Healthcare

Energy

Retail

Telecommunications

Professional Services

Construction

Logistics

Real Estate

Consumer Goods

Relevant Teams

Legal

Finance

Compliance

Tax

Treasury

Corporate Governance

Operations

Risk Management

Internal Audit

Commercial

Business Development

Shared Services

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Director

Commercial Director

Head of Compliance

Financial Controller

Tax Manager

Operations Director

Company Secretary

General Counsel

Corporate Governance Manager

Treasury Manager

Risk Manager

Internal Audit Manager

Business Development Director

Shared Services Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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