Q: Can a shareholder in a company give a loan to the company, and expect an interest payment from the company - legally? If not "interest", can there be an agreed fixed sum that the company will pay the shareholder specifically for providing this short-term "loan" to meet the company's working capital requirements? The point to note is that it's not just any individual giving money to the company, but actually a shareholder "loaning" money to the company for an expected monetary return.

Q: Hi there, I'm a new business owner in Dubai (Professional Consulting services - business consulting, startup consulting etc.), and I recently opened my business bank account. I know in order to get loans or credit cards, banks ask for bank statements... etc., and as I am just starting out there is not much revenue in my account. However, my personal account in Dubai does have money, and I was wondering if there is any downside to me transferring a set amount to my business bank account each month in order to build out my banking history. Any thoughts or other alternatives would be much appreciated. Thanks, A.

Q: Hi I had taken a loan from banks and some credit card debts need to be paid. If I take this debt consolidation and settlement plan, will it be covering all my debts? Thanks & regards

The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

The law defines the crimes related to money laundering, commitments and the jurisdictions of the governmental authorities, and the sanctions against perpetrators of money laundering.