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can pvt ltd co accept loan

This query is : Resolved 

can pvt ltd co accept loan

A pvt ltd co. can accept loan only from:
i) Shareholders
ii) Directors
iii) Other bodies corporate
for the purpose of their business. However, if the pvt ltd co want to do lending business than it has to take NBFC certificate.

A Pvt. Ltd. Company can accepts loans from a)Members, b) Directors and c) Relatives of Directors ( not members - Note ).

The Relative is defined in the Companies Act, 1956 which may be referred to.

Other than above a pvt. ltd. company is prohibited from accepting deposits or loans from any other person.

hope the answers above resolves your query


I think sunil have to modify his answer.

Pvt Ltd Co can take loan from Body corp's also. (Inter-Corporate Transactions)

The prohibition is only for unsecured loan from outsiders (exept from other stated above). A pvt. Company can accept loan from any person on security.



good answer by S N KEDIA, agree

i agree S N Kedia

agree with S N KEDIAji

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