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Intercompany Lease Agreement Template for Singapore

An Intercompany Lease Agreement under Singapore law is a formal contract between affiliated companies for the lease of real property. It combines elements of standard commercial leases with specific requirements for related party transactions under Singapore's legal framework. The agreement must comply with both property law requirements and corporate regulations, particularly regarding transfer pricing and arm's length transactions. Special consideration is given to tax implications and corporate governance requirements under Singapore's Companies Act.

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What is a Intercompany Lease Agreement?

The Intercompany Lease Agreement is utilized when one company within a corporate group leases property to another affiliated company in Singapore. This document ensures compliance with Singapore's legal requirements while maintaining proper corporate governance and transfer pricing principles. It addresses key aspects such as rental terms, maintenance obligations, and service charges, while incorporating necessary provisions for related party transactions. The agreement is particularly important for multinational companies operating multiple entities in Singapore and requires careful consideration of both property law and corporate regulatory requirements.

What sections should be included in a Intercompany Lease Agreement?

1. Parties: Identification of lessor and lessee companies, including registration details

2. Background: Context of the lease arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the leased premises

5. Lease Term: Duration, commencement, and termination provisions

6. Rent and Payment Terms: Rental amount, payment schedule, and review mechanisms

7. Maintenance and Repairs: Responsibilities for property maintenance

8. Insurance: Required insurance coverage and obligations

9. Termination: Conditions for early termination and consequences

What sections are optional to include in a Intercompany Lease Agreement?

1. Transfer Pricing Compliance: Specific provisions ensuring arm's length pricing for intercompany transactions

2. Fit-out Works: Provisions for modifications to premises and associated responsibilities

3. Environmental Compliance: Environmental obligations and commitments for industrial or specialized premises

4. Service Charges: Additional charges for building services in multi-tenant buildings

What schedules should be included in a Intercompany Lease Agreement?

1. Property Plans: Floor plans and location maps of leased premises

2. Inventory List: List of fixtures and fittings included in lease

3. Transfer Pricing Documentation: Supporting documentation for arm's length rental determination

4. Service Level Agreement: Details of building services provided and service standards

5. Condition Report: Initial condition of premises at lease commencement

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Ƶ

Cost

Free to use

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