ONE PERSON COMPANY LOAN

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A One Person Company (OPC) generally cannot provide loans to its directors or their relatives. This is due to restrictions outlined in Section 185 of the Companies Act, 2013, which prohibits companies from offering loans to directors, directors of holding companies, or any relative or partner of such directors.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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27 September 2023 Dear All,

Can One person company (OPC) accept or give loan to its directors or relative of direcors?

Thanking You
Nirmal Dave.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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30 September 2023 In terms of provisions of section 185 of the Companies Act, 2013, a company is not allowed to provide any loan (including a loan represented by a book debt) to: its director; or. director of a holding company; or. Any relative or partner of such director;

NIRMAL DAVE

NIRMAL DAVE (Querist)
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02 October 2023 Thank You Sir for your valuable reply.

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