Loan from Partnership firm by Private Limited Company

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A private limited company generally cannot accept a loan from a partnership firm, even if the company's directors are also partners in that firm. This is considered a non-compliance with current laws. Private companies can typically receive loans from directors, shareholders, relatives of directors, or banks. The discussion also touches on whether loans from individuals other than these specified parties are permissible and if they would be classified as deposits.

Bhawna Dubey

Bhawna Dubey (Querist)

28 July 2021 Can a private limited company accept loan from a partnership firm in which all the directors of the company are partners in firm?
What are the recent legal provisions regarding this?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

28 July 2021 NO, company can't accept loan from partnership firm even if its partners or director of the company.

CS Divesh Goyal

CS Divesh Goyal (Expert)

29 July 2021 1. A private Limited Company can't accept loan from the Partnership Firm. It is non Compliance of Law

CS Divesh Goyal

CS Divesh Goyal (Expert)

29 July 2021 Private Company can take from
Directors
Shareholders
Relative of Directors
Banks etc.

Bhawna Dubey

Bhawna Dubey (Querist)

17 October 2021 Sir Can Private limited company accept loan from any individual other than directors, their relatives and shareholders??
If yes then whether it is considered as deposit or not??

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