Intra Company Loan Agreement for Singapore

Intra Company Loan Agreement Template for Singapore

A Singapore law-governed agreement that regulates the terms and conditions of a loan between related entities within the same corporate group. The agreement complies with Singapore Companies Act requirements and includes provisions for interest rates, repayment terms, and statutory compliance. It addresses transfer pricing considerations, corporate governance requirements, and includes necessary safeguards for both parties while maintaining group interests.

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What is a Intra Company Loan Agreement?

The Intra Company Loan Agreement is essential for corporate groups operating in Singapore seeking to establish formal lending arrangements between related entities. It provides a legally compliant framework for internal group financing, addressing key requirements under Singapore law including transfer pricing regulations, corporate benefit considerations, and financial assistance provisions. This document is particularly crucial for multinational corporations with Singapore operations and local groups managing internal capital flows, ensuring proper documentation of inter-company financing while maintaining compliance with regulatory requirements.

What sections should be included in a Intra Company Loan Agreement?

1. Parties: Identification of lender and borrower entities within the company group

2. Background: Context of the loan and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of loan amount and intended use

5. Interest Rate and Calculation: Interest rate terms and calculation methodology

6. Repayment Terms: Schedule and methods of repayment

7. Representations and Warranties: Standard corporate confirmations from both parties

8. Events of Default: Circumstances constituting default

9. Governing Law: Specification of Singapore law as governing law

What sections are optional to include in a Intra Company Loan Agreement?

1. Security: Details of any security provided - used when loan is secured

2. Subordination: Priority ranking of the loan - used when there are multiple corporate loans

3. Tax Gross-Up: Provisions for tax implications - used when withholding tax may apply

4. Currency Provisions: Foreign exchange considerations - used when loan is in foreign currency

What schedules should be included in a Intra Company Loan Agreement?

1. Repayment Schedule: Detailed schedule of repayment dates and amounts

2. Form of Drawdown Notice: Template for requesting loan disbursement

3. Interest Calculation Examples: Illustrations of interest calculations

4. Corporate Authorizations: Relevant board resolutions and authorizations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Industries

Companies Act (Cap. 50): Primary legislation governing corporate entities in Singapore, covering related party transactions, directors' duties, financial assistance provisions, and documentation requirements

Income Tax Act: Tax legislation addressing transfer pricing, withholding tax implications, deductibility of interest expenses, and arm's length principles for related party transactions

Singapore Financial Reporting Standards: Accounting standards framework covering disclosure requirements for related party transactions, interest rate considerations, and financial reporting obligations

Banking Act and MAS Regulations: Regulatory framework for financial institutions, including requirements for inter-company financing and related party transactions

Insolvency, Restructuring and Dissolution Act 2018: Legislation governing corporate insolvency, loan priority, unfair preference provisions, and transaction avoidance in case of insolvency

Contract Law: Common law principles governing contract formation, consideration requirements, and enforceability provisions

Stamp Duties Act: Legislation governing stamp duty implications for loan documents and related transactions

Corporate Governance Requirements: Guidelines and regulations for corporate governance, including group treasury policies and internal control requirements

Foreign Exchange Controls: Regulations governing cross-border transactions and currency controls, if applicable to the loan arrangement

Anti-Money Laundering Regulations: Compliance requirements for preventing money laundering and ensuring transaction legitimacy

Ultimate Beneficial Ownership Requirements: Disclosure requirements for identifying and reporting ultimate beneficial owners in corporate transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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