Aug 17, 2023 / by mamarina / In Allgemein / Leave a comment
If you`re running a business in the UK, you might be familiar with the concept of an intra-group services agreement. This type of agreement is used between companies that are part of the same group, and governs the provision of services between them.
An intra-group services agreement sets out the terms under which one company will provide services to another company within the same group. This might include things like IT support, finance and accounting services, or marketing and advertising services.
The agreement is important because it helps to ensure that services are provided on a commercial basis, rather than being gifted or given away for free. This can be particularly important for tax purposes, as it helps to demonstrate that services have been provided at a fair and reasonable price.
So, what should be included in an intra-group services agreement template for businesses in the UK? Here are some key considerations:
1. Scope of services: The agreement should clearly set out the services that will be provided, and the scope of those services.
2. Service level agreement: If you`re providing services to another company, it`s important to agree on service levels and response times. This helps to ensure that expectations are managed, and that the services are delivered to an agreed standard.
3. Pricing: The agreement should set out the pricing structure for the services being provided, and how pricing will be reviewed over time.
4. Payment terms: Payment terms should be clearly set out in the agreement, including when payments are due and what happens in the event of non-payment.
5. Termination: The agreement should set out the circumstances in which the agreement can be terminated, and what happens in the event of termination.
6. Confidentiality: If the services being provided involve confidential information, it`s important to include provisions in the agreement to protect that information.
7. Governing law and jurisdiction: Finally, the agreement should specify the governing law and jurisdiction that will apply to any disputes that arise under the agreement.
Overall, an intra-group services agreement is an important tool for businesses that are part of the same group. By setting out the terms under which services will be provided, the agreement helps to ensure that services are provided on a commercial basis and that tax implications are managed appropriately. If you`re looking for an intra-group services agreement template for your business in the UK, it`s important to work with an experienced legal professional to ensure that the agreement meets your needs and protects your interests.