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A Intercompany Agreement sets clear rules for business dealings between companies within the same corporate group in Germany. These contracts spell out how related companies handle everything from sharing services and transferring goods to managing intellectual property and splitting costs.

Under German commercial law (Handelsgesetzbuch), these agreements must follow strict documentation requirements and transfer pricing rules. They protect both the parent company and its subsidiaries by creating legally binding terms for their internal transactions, while also satisfying tax authorities' requirements for arm's length dealings. Most German corporate groups use them to maintain compliance and prevent disputes about internal pricing or resource allocation.

Put a Intercompany Agreement in place when your German corporate group starts sharing resources, services, or personnel between affiliated companies. This becomes essential before launching shared service centers, implementing group-wide IT systems, or establishing central management functions across subsidiaries.

German tax authorities expect to see these agreements when companies report related-party transactions, especially for transfer pricing documentation. Having them ready becomes crucial during tax audits, corporate restructuring, or when expanding operations across borders. They're particularly important when parent companies provide management services, license intellectual property, or establish cash pooling arrangements with subsidiaries.

• Intercompany Administrative Services Agreement: Governs shared administrative functions like HR, IT, or accounting between group companies
• Intercompany Assignment Agreement: Handles temporary staff transfers and project assignments within the group
• Intercompany Asset Transfer Agreement: Manages the sale or transfer of physical and intangible assets between affiliates
• Intercompany Cost Plus Agreement: Sets pricing for services with a markup following German transfer pricing rules
• Intercompany Credit Agreement: Regulates internal loans and financing arrangements between group entities

• Parent Company Management: Initiates and oversees Intercompany Agreements, ensuring group-wide compliance with German corporate law
• Subsidiary Directors: Review and sign agreements on behalf of their entities, managing local implementation
• Corporate Tax Teams: Ensure transfer pricing compliance and documentation meets German tax authority requirements
• Legal Departments: Draft and maintain agreements, adapting them to specific intra-group relationships
• External Auditors: Review agreements during annual audits to verify proper documentation of related-party transactions
• Tax Authorities: Examine these agreements during audits to verify arm's length pricing and proper corporate structure

• Company Details: Gather exact legal names, registration numbers, and addresses of all participating entities
• Service Scope: Define specific services, goods, or resources being exchanged between group companies
• Pricing Structure: Document your transfer pricing methodology to meet German tax requirements
• Authority Check: Confirm signing authority levels within each entity per German corporate law
• Performance Metrics: Outline service levels, delivery terms, and quality standards
• Risk Assessment: Map potential liability scenarios and appropriate insurance coverage
• Documentation: Our platform generates complete Intercompany Agreements that include all required elements under German law

• Party Identification: Full legal names, registration numbers, and authorized representatives of all group entities
• Service Description: Detailed scope of services, deliverables, and performance standards
• Pricing Terms: Clear transfer pricing methodology compliant with German tax regulations
• Payment Details: Currency, payment schedules, and invoicing procedures
• Duration and Termination: Contract period, renewal terms, and termination conditions
• Data Protection: GDPR-compliant data handling and confidentiality provisions
• Governing Law: Explicit reference to German law and jurisdiction
• Signature Requirements: Proper execution blocks meeting German corporate law standards

While Intercompany Agreements manage relationships between affiliated companies, they're often confused with Consortium Agreements. Though both involve multiple parties working together, their purposes and legal frameworks differ significantly under German law.

• Legal Relationship: Intercompany Agreements operate between entities under common ownership, while Consortium Agreements bind independent companies collaborating on specific projects
• Tax Treatment: Intercompany Agreements must satisfy transfer pricing rules and documentation requirements, whereas Consortium Agreements focus on project-specific profit sharing and joint liability
• Duration: Intercompany Agreements typically establish ongoing operational relationships, while Consortium Agreements usually last for a defined project period
• Control Structure: Intercompany Agreements reflect existing corporate hierarchies, but Consortium Agreements create new collaborative governance structures between independent entities