Interest free unsecured loan by foreign Co. to Indian Co. as shareholders in both cos. are relatives
This query is : Resolved
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Suraj Mishra PECPL
(Querist)
16 March 2023
Can a foreign company give an interest-free unsecured loan to an Indian company where the owners (shareholders) in the foreign company are relatives of owners (Shareholders) of the Indian company?
CA R SEETHARAMAN
(Expert)
16 March 2023
Yes, in the form of ECB where no minimum interest is specified.
Suraj Mishra PECPL
(Querist)
16 March 2023
Can't this be treated as Loans From Friends And Family
CA R SEETHARAMAN
(Expert)
16 March 2023
No, as this is a loan to the company.
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