Borrowing from llp

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MOHAN (Querist)
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11 February 2016 whether a private limited company can borrow funds from LLP? or is there any exemption to private limited company in section 73 of deposits rules.Plz urgent to be clarify

CS Divesh Goyal

CS Divesh Goyal (Expert)
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12 February 2016 As per Definition of Deposit Private Companies are exempted to accept loan from the other Companies.
So private limited Company can accept loan from followings:

1. Directors
2. Members
3. Relatives of Directors

Not allowed from the LLP.

MOHAN

MOHAN (Querist)
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12 February 2016 but sir LLP is a body corporate and deposit rules is exempted if pvt ltd co. borrow from llp because mca had clarified that pvt ltd co. can give loan to director if loan outstanding from body corporate is not greater than 2times of paid up capital or 50 crores whichever is lower. from the above it seems that pvt ltd can borrow from body corporate.

CS Divesh Goyal

CS Divesh Goyal (Expert)
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13 February 2016 Mr. Mohan,

These two are different-2 provisions.
If private limited company want to take loan then read section 73 but if private limited company giving loan read 185.
For your sitution you have to see section 73. As per Section 73 you cant take loan from LLP>

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MOHAN

MOHAN (Querist)
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13 February 2016 Thanks sir for your valuable suggestion.

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