Document background
The Inter Company Services Agreement is a critical document used when establishing formal service arrangements between affiliated companies in Pakistan. It is particularly relevant when one company within a corporate group provides specific services (such as IT, administrative, technical, or management services) to another related company. This agreement ensures compliance with Pakistani corporate law, tax regulations (especially transfer pricing rules), and relevant regulatory requirements. It is commonly used in both domestic and international group structures where services are shared between entities, and becomes especially important for documentation requirements under Pakistani tax laws and for establishing arm's length pricing in related party transactions. The agreement typically includes detailed service specifications, performance metrics, payment terms, and compliance procedures, making it essential for corporate governance and regulatory compliance.
