• +44 20 3286 8868
  • +1 747 212 0206
  • +86 21 2052 0623

10-Point Checklist for reviewing Intercompany Agreements

Group Reorganisations

Intercompany Agreements

1 May 2017

This article appears in the May issue of our International Corporate Structures Newsletter.

1. Parties – correctly described?

2. Consistency with functional analysis – especially as regards subject matter, pricing and risk

3. Term and termination – consistent with the parties’ ability to bear risk

4. Ownership of intellectual property – for pre-existing IP and IP created in the performance of the agreement

5. Vertical consistency – where the agreement forms part of a chain of supplies

6. Horizontal consistency – where the supply needs to be aligned to, or differentiated from, other similar supplies

7. Payment, default interest and currency – consistent with actual / intended practice

8. Administrative and reporting provisions – consistent with actual / intended practice

9. Governing law and formal requirements

10. Corporate benefit – the arrangements as a whole should make commercial sense for each of the participating entities

Free insights

Get practical advice & insights on the Legal Implementation of Transfer Pricing for Multinational Groups

We won't share your details and you can opt-out any time. Learn more in our Privacy Policy

Article by
Paul Sutton
LCN Legal Co-Founder

Free Guide: Effective Intercompany Agreements for TP Compliance

ENQUIRE NOW