Document background
The Inter Company Loan Agreement is a crucial document used when companies within the same corporate group in Pakistan engage in internal financing arrangements. This agreement is essential for documenting loans between related entities, whether for working capital, expansion projects, or other corporate purposes. It must comply with Pakistani legal requirements, including the Companies Act 2017, banking regulations, and tax laws. The document typically includes detailed terms about the loan amount, interest rates, repayment schedule, security (if any), and default provisions. It's particularly important for maintaining transparent related-party transactions, ensuring proper corporate governance, and meeting regulatory compliance requirements. The agreement should be structured to address both commercial needs and legal requirements while considering the specific relationship between the group companies involved.
