Document background
The Intercompany Shared Services Agreement is essential for corporate groups operating in India that wish to optimize their operations through centralized service delivery models. This document becomes necessary when one entity within a corporate group provides various support services (such as IT, HR, finance, or administrative services) to other group entities. It ensures compliance with Indian regulatory requirements, particularly the Companies Act 2013, transfer pricing regulations under the Income Tax Act, and GST provisions. The agreement is crucial for documenting arm's length arrangements, establishing clear service levels and accountability, and maintaining proper corporate governance. It typically includes detailed service descriptions, performance metrics, pricing mechanisms, and operational procedures, making it a fundamental document for structuring efficient and compliant shared services operations within Indian corporate groups.
