Questions & Answers
Is it allowed for a company owner to transfer a loan to company account?
Dear Sir/Madam,
The owner of the company, who is a 100% shareholder, is willing to transfer a loan to the company account.
1. Is it allowed for the company and shareholder?
2. If it is allowed, based on which law is the regulation of it?
3. How long a period is allowed for loan return?
4. Can it be an interest-free loan (credit)?
Dear Questioner,
A loan agreement is allowed and we can assist you in drafting the agreement guaranteeing the lender rights.
To answer your query regarding the interest, we might need to verify the information of the lender, and borrower trade license to see if there will be any implication from a corporate tax perspective.
You can reach out to us through WhatsApp for swift legal solutions.
Dear Questioner,
We are pleased to respond to your consultation
Transferring the loan from the shareholder to the company’s account in the United Arab Emirates:
1) Is transferring the loan from the shareholder to the company’s account allowed?
Yes, transferring the loan from the shareholder to the company's account is allowed in the UAE.
2) What is the law that regulates the transfer of the loan from the shareholder to the company’s account?
The law regulating the transfer of the loan from the shareholder to the company’s account is Federal Commercial Companies Law No. 2 of 2015.
3) What is the period allowed to return the loan?
There is no maximum period allowed for loan returns in the Federal Commercial Companies Law.
4) Can it be an interest-free loan (credit)?
Yes, it can be an interest-free loan (credit).
For further inquiries about your topic, you can reach our office or contact us via email or WhatsApp.
