Intercompany Agreement Template for Qatar

A Intercompany Agreement sets out the terms and rules when different parts of the same company group do business with each other. In Qatar, these agreements help multinational companies and local business groups manage internal transactions, services, and resource sharing between their subsidiaries while staying compliant with Qatar's Commercial Companies Law.

These agreements play a crucial role in transfer pricing documentation, tax compliance, and maintaining clear financial boundaries between related entities. They spell out important details like payment terms, service levels, and dispute resolution methods - helping Qatari businesses protect their interests and meet local regulatory requirements, especially under Qatar Financial Centre (QFC) regulations.

Use an Intercompany Agreement when your Qatar-based company group starts sharing resources, services, or conducting transactions between related entities. This becomes essential when setting up shared service centers, implementing management fee arrangements, or establishing cross-border operations within your corporate structure.

The timing is particularly critical before starting major intercompany transactions, during corporate restructuring, or when expanding operations under Qatar Financial Centre regulations. Having these agreements in place helps prevent transfer pricing disputes, simplifies tax compliance, and creates clear accountability for service delivery between your group entities - especially important given Qatar's increasing focus on corporate governance and transparency.

• Service Agreements: Cover ongoing operational support, IT services, or administrative functions between Qatar-based group entities
• Management Fee Agreements: Structure payments for executive oversight and strategic guidance within corporate groups
• Intellectual Property Licensing: Handle trademark and technology sharing between related companies
• Cost Sharing Agreements: Outline how shared expenses and resources are allocated across group entities
• Distribution Agreements: Govern product distribution arrangements between manufacturing and selling entities within the group, particularly important under Qatar's commercial agency laws

• Corporate Legal Teams: Draft and review Intercompany Agreements to ensure compliance with Qatar's commercial laws and group policies
• Board Members: Approve and oversee these agreements as part of their corporate governance duties
• Finance Directors: Ensure proper transfer pricing documentation and financial compliance between group entities
• Subsidiary Management: Implement and operate under these agreements in daily operations
• Tax Advisors: Review agreements for compliance with Qatar tax regulations and transfer pricing rules
• QFC Compliance Officers: Monitor adherence to Qatar Financial Centre requirements and reporting obligations

• Entity Details: Gather full legal names, registration numbers, and addresses of all group companies involved
• Service Scope: Define exact services, resources, or transactions to be covered under the agreement
• Financial Terms: Document pricing methodology, payment terms, and currency arrangements between entities
• Compliance Check: Review Qatar's transfer pricing rules and QFC regulations applicable to your business structure
• Internal Approvals: Confirm authority levels and get necessary board or management approvals
• Documentation: Prepare supporting schedules, service level metrics, and reporting requirements

• Party Details: Full legal names, registration numbers, and authorized signatories of all group entities
• Service Description: Detailed scope of services, deliverables, and performance standards
• Pricing Terms: Clear pricing methodology, payment schedules, and currency specifications
• Duration & Termination: Agreement period, renewal terms, and termination conditions
• Compliance Clauses: References to Qatar's transfer pricing rules and QFC regulations
• Dispute Resolution: Choice of Qatar law, jurisdiction, and arbitration procedures
• Confidentiality: Data protection and information sharing protocols between entities

When comparing an Intercompany Agreement with an Business Acquisition Agreement, it's crucial to understand their distinct purposes in Qatar's business landscape. While both involve transactions between companies, they serve fundamentally different functions.

• Transaction Nature: Intercompany Agreements govern ongoing relationships between related entities within the same group, while Business Acquisition Agreements facilitate one-time purchases of entire businesses between independent parties
• Regulatory Framework: Intercompany Agreements focus on transfer pricing and group compliance under QFC rules, whereas Business Acquisition Agreements fall under Qatar's merger and acquisition regulations
• Duration and Scope: Intercompany Agreements typically remain active indefinitely with periodic reviews, while Business Acquisition Agreements conclude once the transaction closes
• Risk Management: Intercompany Agreements manage internal operational risks, while Business Acquisition Agreements address external transaction risks and warranties