The Intercompany Contract serves as a crucial legal framework for formalizing relationships between related corporate entities operating in Malaysia. This document is essential when establishing structured arrangements for shared services, resource allocation, financial transactions, or operational support between group companies. It ensures compliance with Malaysian regulatory requirements, including the Companies Act 2016, tax regulations, and transfer pricing rules. The contract is particularly important for multinational corporations with Malaysian operations, domestic corporate groups, and companies establishing regional headquarters or shared service centers in Malaysia. It helps demonstrate arm's length transactions, maintains proper corporate governance, and provides clear accountability and risk allocation between related entities.
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1. Parties: Identification of the contracting companies, including registration numbers and registered addresses
2. Background: Context of the agreement, relationship between the parties, and purpose of the contract
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Scope of Services/Arrangement: Detailed description of the intercompany arrangement, services, or relationship
5. Duration and Term: Contract period, renewal terms, and termination provisions
6. Financial Arrangements: Pricing, payment terms, invoicing, and financial obligations
7. Compliance and Reporting: Regulatory compliance requirements, reporting obligations, and record-keeping
8. Confidentiality: Protection of confidential information and trade secrets
9. Intellectual Property: Ownership and usage rights of IP between the companies
10. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement
11. Execution: Signature blocks and execution formalities
1. Personnel and Resources: Used when the arrangement involves shared employees or resources
2. Data Protection: Required when personal data is processed or transferred between companies
3. Tax Matters: Included when specific tax arrangements or transfer pricing considerations apply
4. Service Levels: Needed when specific performance metrics are required
5. Audit Rights: Important when regular auditing of services or financials is required
6. Force Majeure: Optional but recommended for long-term arrangements
7. Insurance: Required when specific insurance coverage needs to be maintained
1. Schedule 1 - Services Description: Detailed specification of services or arrangements
2. Schedule 2 - Pricing and Payment Terms: Detailed pricing structure, calculation methods, and payment procedures
3. Schedule 3 - Service Levels and KPIs: Performance metrics and measurement criteria
4. Schedule 4 - Contact Details: Key personnel and contact information for both parties
5. Schedule 5 - Compliance Requirements: Specific regulatory and compliance obligations
6. Appendix A - Required Forms: Standard forms for notices, service requests, or reports
7. Appendix B - Technical Requirements: Technical specifications or requirements if applicable
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