Conversion of unsecured loan given by nri to equity
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 April 2014
An NRI has given unsecured loan/advance for development of a software to a private limited company in India. Can this unsecured loan be converted to equity? how? what would be the case if after conversion that NRI becomes the owner of more than 90% of the share capital of the company?
21 April 2014
R/SIR
WHEN YOU RECD MONEY FROM NRI THEN YOU FILE DOCUMENT IN RBI FOR MONEY RECD FROM OUTSIDE COUNTRY.
IN WHICH YOU SHOW IT IS UNSECURED LOAN THEN YOU CAN NOT CHANGE THAT.
AND ALSO YOPU CAN NOT MAKE DIRCT 90% NON RI MONEY IN YOU COMPAMNY. PLS SEE FOR THIS RBI GUIDLINES AND FEMA ACT.
WHEN YOU RECD MONEY FROM NRI THEN YOU FILE DOCUMENT IN RBI FOR MONEY RECD FROM OUTSIDE COUNTRY.
IN WHICH YOU SHOW IT IS UNSECURED LOAN THEN YOU CAN NOT CHANGE THAT.
AND ALSO YOPU CAN NOT MAKE DIRCT 90% NON RI MONEY IN YOU COMPAMNY. PLS SEE FOR THIS RBI GUIDLINES AND FEMA ACT.
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