For onshore LLCs, a reasonable time period for paying a dividend is around 4 weeks. This will require (i) calling for the annual general assembly for a meeting 14 days at least ahead of the meeting; (ii) the approval of the shareholders to distribute dividends (provided that the manager of the LLC confirms that there are distributable dividends); (iii) adopting a resolution to approve the distribution of dividends; (iv) releasing the dividends which timing is determined on case by case basis (e.g. requirement of the banks - if any, availability of the bank signatory to transfer the funds, etc.).
For free zone entities, it is slightly faster especially if there is one shareholder in the free zone entity, however this will differ between free zones. A reasonable time period for paying a dividend is around 2 weeks. Preparation and execution of the shareholder’s resolutions may take approximately one week. Timing for the payment of dividends will be determined on case by case basis (e.g. requirement of the banks - if any, availability of the bank signatory to transfer the funds, etc.).
Note that while the relevant companies regulations of both LLCs and FZEs do not include any provisions related to the distribution of any dividends other than annual distribution, the Memorandum of Association of a company can specify the manner of distribution (i.e. interim or others). The legal process of interim (or any other) distribution would be the same method as annual distribution, namely approval of the shareholders is required for the distribution to be made.
The accounts required to support payment of a dividend include the balance sheet, the profit and loss accounts and the annual report of the particular financial year along with the auditor's report.
No, there are no restrictions on the amount of dividends that can be paid, provided that the legal reserves of the company are set aside prior to the distribution, there are distributable dividends, and a company will be able to settle its debts following the distribution.
It is not possible to increase reserves. The methods to increase the reserves include capital reduction, increase of share capital and share buyback. All of those methods require the prior approval of the shareholders of the company and must be permitted under the Memorandum of Association of the company.
No regulatory approvals are required in connection with payment of a dividend.
No, there are no foreign exchange requirements on paying dividends to foreign parent companies.
Yes, provided that the loan does not cause the company to violate the restrictions set out in question 4 above.