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The Inter Company Services Agreement is essential for Malaysian corporate groups implementing shared services arrangements or centralizing specific functions across related entities. This document is typically used when one company within a group provides administrative, technical, management, or operational services to another related company. It ensures compliance with Malaysian corporate law, particularly the Companies Act 2016, and addresses critical transfer pricing requirements under Malaysian tax regulations. The agreement is crucial for documenting arm's length transactions, establishing clear service levels, and maintaining proper corporate governance. It includes detailed provisions for service scope, performance metrics, payment terms, and regulatory compliance, making it particularly important for groups with Malaysian operations or those using Malaysia as a regional hub.

1. Parties: Identification of the service provider and service recipient companies, including registration numbers and registered addresses

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

3. Definitions: Defined terms used throughout the agreement, including specific service-related terminology

4. Scope of Services: Detailed description of services to be provided, including service levels and delivery standards

5. Duration and Term: Period of the agreement, including commencement date and renewal provisions

6. Fees and Payment Terms: Service fees, payment schedule, invoicing requirements, and transfer pricing compliance statements

7. Performance Standards: Key performance indicators, service quality metrics, and reporting requirements

8. Obligations of the Service Provider: Specific duties, responsibilities, and commitments of the providing company

9. Obligations of the Service Recipient: Specific duties, responsibilities, and commitments of the receiving company

10. Intellectual Property Rights: Ownership and usage rights of IP created or used in service delivery

11. Confidentiality: Protection of confidential information exchanged during service provision

12. Data Protection: Compliance with PDPA 2010 and data handling requirements

13. Liability and Indemnification: Allocation of risks and responsibilities between the parties

14. Termination: Circumstances and procedures for ending the agreement

15. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution