Document background
The Loan Agreement Between Parent Company And Subsidiary is a crucial document used in UAE corporate group structures to formalize and document intercompany financing arrangements. This agreement is essential when a parent company provides financial support to its subsidiary through a loan facility, requiring compliance with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations governing related party transactions. The document should be used whenever there is an intercompany loan arrangement within a corporate group, ensuring proper documentation of terms, conditions, and compliance with local regulatory requirements. It contains detailed provisions covering loan amount, interest calculations, drawdown mechanics, repayment terms, and necessary corporate approvals, while addressing UAE-specific requirements for related party transactions, corporate governance, and financial reporting.
