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Intercompany Agreement Between Parent And Subsidiary Template for United Arab Emirates

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Key Requirements PROMPT example:

Intercompany Agreement Between Parent And Subsidiary

"I need an Intercompany Agreement between Parent and Subsidiary under UAE law for our new tech subsidiary in Dubai, which will handle regional software development and IT services starting March 2025, with particular focus on IP rights and employee secondment arrangements."

Document background
The Intercompany Agreement Between Parent And Subsidiary is a crucial document for corporate groups operating in the UAE, establishing the legal and operational framework for parent-subsidiary relationships. This agreement is essential when setting up or formalizing group structures in the UAE, particularly under the governance of UAE Federal Law No. 32 of 2021 and related regulations. It becomes necessary when establishing new subsidiaries, restructuring existing relationships, or ensuring compliance with UAE transfer pricing and corporate governance requirements. The document covers essential aspects such as management control, financial arrangements, service provisions, and compliance obligations, while accounting for specific UAE business requirements and local commercial practices. It's particularly relevant for companies operating in mainland UAE or free zones, and can be adapted for both wholly owned subsidiaries and joint venture structures.
Suggested Sections

1. Parties: Identification of the parent company and subsidiary, including full legal names, registration details, and addresses

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

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Agreement: Overview of services, support, or arrangements covered by the agreement

5. Rights and Obligations: Detailed responsibilities and rights of both parent and subsidiary

6. Governance and Control: Management structure, reporting lines, and decision-making processes

7. Financial Arrangements: Payment terms, transfer pricing methodology, and financial obligations

8. Compliance and Reporting: Requirements for regulatory compliance, internal reporting, and record-keeping

9. Confidentiality: Protection of confidential information and trade secrets

10. Term and Termination: Duration of agreement and circumstances for termination

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Used when the agreement involves sharing or licensing of IP between parent and subsidiary

2. Employee Secondment: Include when staff will be transferred or seconded between entities

3. Shared Services: Required when parent provides specific administrative or operational services

4. Tax Matters: Detailed tax arrangements and responsibilities, particularly important with international parent companies

5. Brand Usage: Include when subsidiary needs rights to use parent company's branding and trademarks

6. Data Protection: Required when significant data sharing occurs between entities

7. Non-Competition: Include when there are specific market restrictions for the subsidiary

8. Insurance: Detailed insurance requirements and allocations of risk between entities

Suggested Schedules

1. Schedule 1: Service Levels: Detailed description of services and performance standards

2. Schedule 2: Charges and Payment Terms: Detailed pricing, payment mechanisms, and transfer pricing methodology

3. Schedule 3: Governance Procedures: Detailed procedures for management, reporting, and decision-making

4. Schedule 4: Compliance Requirements: Specific regulatory and internal compliance requirements

5. Schedule 5: Key Personnel: List of key contacts and responsible persons from both entities

6. Appendix A: Technical Requirements: Technical specifications for any shared systems or processes

7. Appendix B: Form of Reports: Templates for required reporting between entities

8. Appendix C: Group Policies: Relevant group-wide policies that apply to the subsidiary

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































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Relevant Industries

Financial Services

Manufacturing

Technology

Real Estate

Retail

Healthcare

Energy

Transportation and Logistics

Professional Services

Construction

Telecommunications

Hospitality

Trading

Industrial

Relevant Teams

Legal

Finance

Compliance

Corporate Governance

Tax

Treasury

Operations

Risk Management

Corporate Affairs

Company Secretariat

Internal Audit

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Managing Director

Finance Director

Legal Director

Company Secretary

Head of Compliance

Corporate Governance Officer

Tax Director

Operations Director

Group Financial Controller

Treasury Manager

Legal Counsel

Compliance Manager

Corporate Affairs Manager

Risk Manager

Group Company Secretary

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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