Table of Contents
Can I take loan from foreign?
ii) A branch outside India of an AD being a bank incorporated or constituted in India, may borrow in foreign exchange in the normal course of its banking business from outside India, subject to the directions or guidelines issued by the Reserve Bank from time to time, and the Regulatory Authority of the country where …
Can Indian company take unsecured loan from foreign company?
Borrowing from an overseas company or a Non-Resident Indian is regulated by the Foreign Exchange Management Act, 1999. Loans from foreign companies can be availed by Indian companies and entities. However, entities have to comply with the provisions related to foreign exchange management act.
In which of the following type of account loans can not be given outside India?
Accordingly, a PIO may advance a loan to his/her relative who is a person resident in India from his/her NRO account subject to fulfilment of the above mentioned conditions. The loan amount cannot be remitted outside India and the repayment should only be made to the NRO account.
What is Section 185 of Companies Act 2013?
Section 185 (as amended by the Companies (Amendment) Act, 2017): Limits the prohibition on loans, advances, etc. to Directors of the company or its holding company or any partner of such Director or any partner of such Director or any firm in which such Director or relative is a partner.
Can Non-resident directors take loans?
A company incorporated in India under the Companies Act can borrow money from an NRI and the borrowing can be both on repatriable and non-repatriable basis, ie the loan amount can be repaid either in India or the loan amount can be repatriated to the bank account of the NRI maintained outside India.
Can a Indian resident take loan from abroad?
A resident importer can borrow in foreign currency from the overseas supplier of goods, in foreign currency. However, the loan should be repaid in three years. A loan in foreign exchange can also be taken by resident Indians from their close NRI relatives. The loan should be utilized for borrowers’ personal use.
Can a foreign director give loan to Indian company?
Yes. A director can give loan to the company. There are no restrictions.
Can non resident residents give loans?
Can an NRI borrow from a resident Indian? Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions: The loan should be free of interest. Minimum maturity period should be one year.
Can private limited company take unsecured loan from outsiders?
In terms of accepting loans, a Private Limited company cannot acknowledge loans from outsiders. Furthermore, a Private Limited Company also cannot acknowledge credit from its investors. Also, private companies, contrasting with public companies, are prohibited from accepting deposits from the public as well.
Can private limited company take unsecured loan from another private limited company?
As per the provisions, the Companies can accept unsecured loan or deposit from Director of the company provided further that such amount is not a borrowed amount and can accept inter corporate loan(s) from another body corporate and not from any other person.