Foreign holding company giving loan to indian co.??
This query is : Resolved
28 November 2016
Dear Member,
Can a Foreign Holding Company give loan to Indian Subsidiary Company?? What are the compliance associated with it??
Can a Foreign Holding Company give loan to Indian Subsidiary Company?? What are the compliance associated with it??
29 November 2016
YES, AS PER SECTION 186 OF THE COMPANIES ACT 2013, A FOREIGN HOLDING COMPANY CAN GIVE LOAN TO ITS SUBSIDIARY COMPANY UPTO 60% OF PAID UP SHARE CAPITAL, FREE RESERVES AND SECUTIES PREMIUM OR 100% OF FREE RESERVE AND SECURITIES PREMIUM BY PASSING BOARD RESOLUTION IN BOARD MEETING ( AS PER SECTION 179). BUT IF COMPANY CROSES THIS TRESHOLD LIMIT THEN BY PASSING SPECIAL RESOLUTION AT GENERAL MEETING.
BUT FOREIGN HOLDING COMPANY WILL NOT BE ABLE TO GIVE LOAN TO ITS SUBSIDIARY COMPANY IN THE FOLLOWING CASES.
IF SUCH FOREIGN COMPANY IS BANKING COMPANY OR INSURANCE COMPANY OR HOUSE FINANCE COMPANY IN THE ORDINRY COURSE OF BUSINESS
IF FOREIGN COMPANY IS ENGAGED IN PROVIDING INFRASTRUCTURAL FACILITIES OR BUSINESS OF FINANCING COMPANY ETC.
ROC REQUIREMENT : THE COMPANY WHO GRANT LOAN IS REQUIRED TO FILE MGT 14 WITHIN 30 DAYS OF BOARD RESOLUTION ( SECTION 179)
BUT FOREIGN HOLDING COMPANY WILL NOT BE ABLE TO GIVE LOAN TO ITS SUBSIDIARY COMPANY IN THE FOLLOWING CASES.
IF SUCH FOREIGN COMPANY IS BANKING COMPANY OR INSURANCE COMPANY OR HOUSE FINANCE COMPANY IN THE ORDINRY COURSE OF BUSINESS
IF FOREIGN COMPANY IS ENGAGED IN PROVIDING INFRASTRUCTURAL FACILITIES OR BUSINESS OF FINANCING COMPANY ETC.
ROC REQUIREMENT : THE COMPANY WHO GRANT LOAN IS REQUIRED TO FILE MGT 14 WITHIN 30 DAYS OF BOARD RESOLUTION ( SECTION 179)
29 November 2016
But will this loan not fall in ECB guidelines??
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- SFT Cash Deposit in Current Account
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
