Tax on foreign loan

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A proprietor is seeking advice on accepting a business loan from an unknown foreigner, who also wants to be a non-legal owner for the loan's duration. Concerns have been raised about the legality of such an arrangement and potential tax issues related to foreign income. It's advised that such loans may require RBI permission and could lead to legal trouble if not handled correctly.

sankar ponnan

sankar ponnan (Querist)
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09 April 2021 Sir / Mam
I am a Proprietor and for my business development, I had approached with my friend.
He introduced a person but he is living in foreign ( Not an Indian).
I did not see him before and even not speak to him.
How ever, the foreigner is ready to send the business loan to me by bank account.

And he has two conditions that ,
- the loan will be returned after a specific period.
- for that specific period, he wants to be one of the owner but not in legal.

My doubts are,
(1) Can I join with a foreigner and get the loan from him for my
business?
(2) Will any legal issue as it is a foreign income (Loan) from an
unknown person?

Guide me plz
thanks in adv