16 June 2016
HI, I WANT TO START BORROWING MONEY RS.10000/- FROM SOME OF MY FRIENDS & PAY THEM INTEREST @ 12% INTREST AFTER YEAR & I WILL INVEST THAT RS.10,000/- IN MUTUAL FUNDS & EARN MORE. I WILL TAKE MONEY BY CHEQUE ONLY. SO IS THERE ANY LICENCE REQUIRED TO DO THIS BUSINESS ??? OR ANY OTHER LEGAL FORMALITIES? ? I WANT TO DO THIS BUSINESS IN MY PERSONAL NAME AS PROPRITOR SHIP.
17 June 2016
Individual banking liscence is no more given. You can borrow money from your friends, relatives etc. The rate should be reasonable. (This is from income tax perspective) 12% per annum is definitely reasonable rate. So you can go ahead.
CAclubindia
