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A Intercompany Agreement sets out the terms and rules for business dealings between related companies within the same corporate group. These legally binding contracts spell out how affiliated companies share resources, transfer goods, provide services, and handle financial arrangements with each other.

Under New Zealand's Companies Act and tax laws, these agreements help organizations maintain proper documentation of internal transactions, set fair pricing, and meet their compliance obligations. They're especially important for multinational companies operating in NZ, as they help demonstrate that related-party dealings follow arm's length principles and protect against transfer pricing issues.

Put an Intercompany Agreement in place when your business starts sharing resources, staff, or services between related companies. This becomes crucial during corporate restructuring, when setting up new subsidiaries, or launching joint operations between entities in your group.

New Zealand's tax authorities look closely at dealings between related companies. Having these agreements ready helps prove your internal transactions are legitimate and fairly priced. They're essential for protecting your group from transfer pricing challenges, documenting cost-sharing arrangements, and maintaining clear financial boundaries between entities - especially if one company provides management services or intellectual property to others.

• Service Agreements: Cover ongoing support functions like IT, HR, or accounting between group companies - commonly used by shared service centers
• Distribution Agreements: Handle the sale and transfer of products between related entities, including pricing and delivery terms
• IP Licensing Agreements: Manage the use of trademarks, patents, and other intellectual property within the group
• Management Services Agreements: Detail executive oversight and strategic support services provided by parent companies
• Cost-Sharing Agreements: Outline how group companies split shared expenses and allocate common resources

• Corporate Legal Teams: Draft and review agreements to ensure compliance with NZ company law and tax regulations
• Board Directors: Approve and sign agreements on behalf of their respective group companies
• Financial Controllers: Implement pricing structures and monitor financial flows between related entities
• Tax Advisors: Guide transfer pricing policies and ensure agreements meet Inland Revenue requirements
• Company Secretaries: Maintain official records and ensure proper execution of agreements between group entities

• Company Details: Gather full legal names, registration numbers, and addresses of all related entities involved
• Service Scope: Define exactly what services, resources, or goods will be shared between companies
• Pricing Structure: Document how costs will be calculated and charged between entities
• Financial Terms: Outline payment schedules, invoicing processes, and currency arrangements
• Compliance Check: Review NZ transfer pricing rules and Companies Act requirements
• Authorization: Confirm proper signing authority and board approval processes for each entity

• Party Details: Full legal names, company numbers, and registered addresses of all group entities
• Service Description: Clear outline of goods, services, or resources being exchanged
• Pricing Terms: Detailed methodology for calculating charges and transfer pricing arrangements
• Payment Terms: Invoicing procedures, payment schedules, and currency specifications
• Duration & Termination: Agreement length, renewal options, and exit provisions
• Governing Law: Explicit statement that NZ law applies and jurisdiction details
• Execution Block: Proper signature sections for authorized representatives

While Intercompany Agreements manage relationships between related companies, an Business Acquisition Agreement handles the complete purchase of one company by another. Though both involve corporate relationships, their purposes and legal implications differ significantly.

• Relationship Type: Intercompany Agreements govern ongoing internal operations between already-related entities, while Business Acquisition Agreements create new ownership relationships
• Duration: Intercompany Agreements typically run continuously with periodic reviews, whereas Business Acquisition Agreements conclude once the purchase is complete
• Regulatory Focus: Intercompany Agreements primarily address transfer pricing and tax compliance, while Business Acquisition Agreements deal with ownership transfer, due diligence, and purchase terms
• Risk Management: Intercompany Agreements protect against tax authority scrutiny of related-party transactions; Business Acquisition Agreements protect buyers and sellers during ownership changes