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Loan from NRI to a private company, FEMA

Issue Id: - 972
Dated: 9-12-2008
By:- gurmukh kotwani

Loan from NRI to a private company

Contents

An indian pvt Ltd. co. wants to accept a loan of Rs. 1 crore from an NRI.can it be accepted and what are terms & conditions & formalities?

Posts / Replies

Showing Replies 1 to 2 of 2 Records

Page: 1

1 Dated: 10-12-2008
By:- ASHOK

Since it is a company limited by shares, kindly first be guided by the provisions of Sec 58A of the Companies Act, 1956, before you avail the loan from the NRI, if he is not a shareholder of the company... Hencee clarify his status vis a vis the co

2 Dated: 12-12-2008
By:- Bakul Gandhi

The company has to comply with the Companies Acceptance of Derposit Rules, 1975 u/s 58A of the Companies Act 1956. It has to also comply with the Foreign Exchange Management Act, 1999. The deposits can ot be accepted from NRIs on Repatriation basis as it is discontinued from 2004. Again other RBI guidelines provide that the borrowing should not be for relending,, agriculture/plantaion activity or real esatate business.

Page: 1