Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable in the United States under ESIGN and state electronic transaction laws when intent, consent, attribution, and record retention are satisfied.

Who must sign to bind an entity?

An authorized officer or person with delegated authority should sign. Confirm internal authority limits and obtain corporate approval if required by bylaws or internal policy.

Is notarization required for validity?

Not usually for commercial intercompany agreements, but certain jurisdictions or specific clauses may benefit from notarization; verify local rules and counterparty requirements.

How do we handle confidential data sharing?

Include data classification, permitted uses, encryption and access controls, and, if applicable, a HIPAA business associate clause or other industry-specific addendum.

What if the invoicing or SLA data is disputed?

Follow the dispute-resolution clause: preserve records, submit formal dispute notice within the contract window, and escalate per the governance process.

How are amendments processed?

Use a written amendment clause requiring authorized signatures from each party; track changes with effective dates and archive prior agreement versions for auditability.

Electronic Signature
Templates
Miscellaneous
Business Shared Services Agreement

Business Shared Services Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS SHARED SERVICES AGREEMENT

This Business Shared Services Agreement (the "Agreement") is entered into as of by and between Service Provider Name: and Client Name: .

RECITALS

WHEREAS, Service Provider maintains centralized support personnel and systems to provide administrative and operational services to related business units; and

WHEREAS, Client desires to receive, and Service Provider agrees to provide, certain shared services on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend for this Agreement to define the scope, payment terms, performance standards, confidentiality obligations and dispute resolution procedures governing the shared services relationship.

SCOPE OF SERVICES

Service Provider will provide the services described below to Client (the "Services"). The Services shall be performed in a professional manner consistent with industry standards and subject to the service levels set forth in this Agreement.

Detailed Description of Services

SERVICE LEVELS AND PERFORMANCE

Service Provider shall use commercially reasonable efforts to meet the service levels and response times mutually agreed in writing. Failure to meet materially significant service levels shall entitle Client to remedies limited to fee adjustments or credits as set forth in the payment terms below; such remedies constitute Client's sole and exclusive remedy for performance failures.

PAYMENT TERMS

In consideration for the Services, Client shall pay Service Provider the fees described herein.

Recurring Service Fee (per billing period) Billing and Payment Schedule

Invoices shall be sent to the notice address provided below. Payments are due within calendar days of invoice date unless otherwise agreed in writing.

Late Payment Fee

Overdue amounts shall accrue interest at the lesser of (a) a rate of per month or (b) the maximum rate permitted by applicable law. Client shall also reimburse Service Provider for reasonable collection costs, including attorneys' fees, incurred to recover overdue payments.

TERM AND TERMINATION

This Agreement commences on the Start Date: and continues until the End Date: unless earlier terminated as provided below.

Either party may terminate this Agreement for convenience upon prior written notice. Either party may terminate for material breach if the breach remains uncured for thirty (30) days after written notice of such breach. Termination does not relieve Client of its obligation to pay for Services performed through the effective date of termination.

CONFIDENTIALITY

Each party (the "Receiving Party") shall hold in strict confidence all non-public, proprietary or confidential information disclosed by the other party (the "Disclosing Party") and shall not use such information except to perform obligations under this Agreement. Confidential Information includes business plans, financial information, personnel data, customer lists, trade secrets and technical information, but does not include information that: (a) is or becomes publicly available without breach of this Agreement; (b) was known to the Receiving Party prior to disclosure; or (c) is independently developed by the Receiving Party without use of the Disclosing Party's Confidential Information.

The Receiving Party shall take commercially reasonable measures to protect Confidential Information and shall return or destroy such information within thirty (30) days of written request or termination, except to the extent retention is required by law, in which case the Receiving Party shall continue to treat retained information as Confidential Information.

LIMITATION OF LIABILITY AND INDEMNIFICATION

Except for each party's indemnification obligations and willful misconduct, neither party shall be liable for consequential, special, incidental, or punitive damages. The aggregate liability of either party for direct damages arising out of or related to this Agreement shall not exceed the total fees paid or payable by Client to Service Provider under this Agreement during the twelve (12) months preceding the claim.

Service Provider shall defend, indemnify and hold Client harmless from third-party claims arising from Service Provider's gross negligence or willful misconduct in performing the Services. Client shall indemnify Service Provider for claims arising from Client's misuse of the Services or breach of this Agreement.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

ENTIRE AGREEMENT

This Agreement, including any exhibits or attachments executed by the parties, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties.

NOTICES

Service Provider - Notice Address Service Provider - Contact Person and Email Client - Notice Address Client - Contact Person and Email

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remainder shall continue in full force. Neither party may assign this Agreement without the prior written consent of the other party, except to an affiliate or in connection with a merger or sale of substantially all assets, provided the assignee assumes all obligations hereunder.

Service Provider:

By:

Date:

Client:

By:

Date:

What the Business Shared Services Agreement Is

A Business Shared Services Agreement is a written contract that defines shared operational or administrative services provided between two or more business units, affiliates, or corporate entities. It allocates responsibilities, service levels, cost allocation methods, data handling rules, invoicing and payment terms, intellectual property considerations for jointly developed outputs, and dispute resolution. The agreement establishes how centralized functions — for example HR, IT, finance, procurement, or facilities — will be delivered, measured, charged, and governed to reduce duplication and clarify accountability across internal stakeholders.

Why a Clear Shared Services Agreement Matters

A clear agreement prevents misunderstandings, sets measurable service levels, and documents cost-sharing mechanics so each party knows obligations and remedies.

Who Typically Uses a Business Shared Services Agreement

Shared services agreements are used by corporate groups, holding companies, and decentralized organizations that centralize certain functions for efficiency.

Internal corporate finance teams allocating overhead and intercompany charges for centralized treasury or accounts payable.
Human resources and payroll groups delivering employment services, benefits administration, and workforce systems across subsidiaries.
IT and procurement teams providing infrastructure, licensing, and vendor-management services to multiple business units.

Use this agreement when services cross legal entities, when cost allocation is required, or when service levels must be enforced between units.

Primary Parties and Typical Signers

Finance Director

A finance director or controller often reviews and signs to confirm cost allocation methods, invoicing cadence, and intercompany billing terms; their signature confirms financial responsibility and acceptance of audit provisions.

Service Owner

A named service owner (e.g., Head of IT, HR Lead) signs to confirm operational SLAs, delivery scope, escalation paths, and performance metrics; signing binds the service provider group to the documented obligations.

Required Administrative and Compliance Data

Party Legal Name: Full registered entity name

Tax ID: EIN or payer TIN

Service Scope: Concise list of included services

Rates & Billing: Chargeback method

Effective Date: Agreement start date

Term & Renewal: Term length and renewal terms

Common Legal and Operational Risks

Ambiguous Scope: Disputes over what is included

Unclear Pricing: Incorrect cost allocation

Missing SLAs: No measurable performance metrics

Data Exposure: Noncompliance with privacy rules

Improper Signers: Signatures without authority

Retention Gaps: Records not preserved

Frequent Preparation Pitfalls to Avoid

Failing to define measurable service-level metrics leads to subjective performance disputes and informal escalations between units.
Using vague consideration language such as 'reasonable charge' rather than a defined cost model causes recurring reconciliation disagreements.
Not addressing data classification and handling for shared systems can expose the business to privacy and regulatory risk.
Omitting change-control or amendment procedures makes updating rates and scope administratively burdensome and legally uncertain.

Step-by-Step: How to Complete the Agreement

Follow these sequential steps to prepare, approve, and execute a Business Shared Services Agreement with clear accountability and auditability.

01

Draft Scope: Describe services, inputs, and exclusions concisely.
02

Set Pricing: Choose chargeback approach and include calculation examples.
03

Define SLAs: Specify metrics, measurement methods, and remedies.
04

Approve & Sign: Ensure authorized signers and retain executed copies.

Online Workflow Settings for eSigning and Routing

Configure a digital routing workflow so approvals occur in the correct order, and documents capture a full audit trail.

Primary signature authentication method used	Email link with optional SMS code for added verification
Sequential signer order and escalation	Signers complete in sequence; set two approvers for finance
Signature and initial fields placement	Place signature, printed name, title, and date fields for each party
Conditional approval gateways for budgets	Route to CFO if charges exceed threshold
Retention and export settings	Store signed PDF and audit trail in secure repository

Typical Electronic Execution Flow

An electronic signing workflow reduces turnaround time and preserves a detailed audit trail for compliance and recordkeeping.

Upload Document: Sender uploads final agreement PDF to the signing platform
Add Fields: Place signature, date, and data fields where required
Assign Signers: Enter signer emails and set signing order or parallel signing
Complete & Archive: Signed parties receive copies; platform stores audit data

Technical Considerations for Digital Execution

Select a platform that supports required authentication, audit trail capture, and secure storage for shared services agreements.

Authentication Options: Email, SMS OTP, or stronger KBA
File Formats Supported: PDF, DOCX, and exportable audit trail
Integration Paths: Connectors for ERP and cloud storage

Common Contractual Deadlines and Notice Periods

Standard clauses define effective, renewal, termination, invoicing, and service reporting deadlines to manage expectations and legal risk.

Effective Date and Term:

Effective on signing; term commonly 1–3 years with renewal options

Renewal Notice:

60–90 days prior written notice for nonrenewal or renegotiation

Termination Notice:

30–90 days depending on cause or convenience terms

Service Reports:

Monthly or quarterly SLA reports with defined reporting deadlines

Invoice Payment Terms:

Typical Net30 or Net45 payment terms for intercompany invoices

Key Components to Include in a Professional Agreement

A robust shared services agreement combines operational detail with governance and measurement so the arrangement is auditable and enforceable.

Scope

A clear, itemized description of services, deliverables, and exclusions that prevents scope creep and supports performance measurement.

Pricing

Explicit chargeback method, rate tables, invoice examples, and timing to avoid disputes over allocation and reconciliation.

Service Levels

Concrete SLAs with metrics, measurement windows, reporting cadence, credits, and remediation steps for missed targets.

Governance

A governance forum, change-control procedures, and escalation paths for disputes or scope changes between parties.

Data Handling

Security, privacy, and access controls, including any required addenda for HIPAA or financial data protections.

Termination & Transition

Exit assistance, data return or destruction, and transition service obligations to minimize disruption on termination.

Selected eSignature Vendor Pricing and Feature Snapshot

Comparison of common plan-level features and starting prices for eSignature vendors; signNow is listed first per standard comparison format.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions and Troubleshooting

Questions commonly asked while preparing or executing a Business Shared Services Agreement and concise answers to resolve typical issues.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable in the United States under ESIGN and state electronic transaction laws when intent, consent, attribution, and record retention are satisfied.
Who must sign to bind an entity?
An authorized officer or person with delegated authority should sign. Confirm internal authority limits and obtain corporate approval if required by bylaws or internal policy.
Is notarization required for validity?
Not usually for commercial intercompany agreements, but certain jurisdictions or specific clauses may benefit from notarization; verify local rules and counterparty requirements.
How do we handle confidential data sharing?
Include data classification, permitted uses, encryption and access controls, and, if applicable, a HIPAA business associate clause or other industry-specific addendum.
What if the invoicing or SLA data is disputed?
Follow the dispute-resolution clause: preserve records, submit formal dispute notice within the contract window, and escalate per the governance process.
How are amendments processed?
Use a written amendment clause requiring authorized signatures from each party; track changes with effective dates and archive prior agreement versions for auditability.

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