Accounting loan from a family for a private limited company

Dear Freinds ,

 

I have a private limited start up company were in we are raising equity and funds to certain level from the family members .

Please guide as under what head this can be considered as this may be a loan without interest and from a individual and not a financial institution  .

Should there be a agreement done with the individual to define the period in which has to be paid or not.

Should the payment or funds be received through a cheque or through cash in the company account.

Please do provide your feedback on this.

Replies (1)

Pvt Ltd Company can not raise money from Public Deposit .

It can be raise money through taking Loan from Relatives and Friends.

It is not advisable to take money without interest as ITO cant be convince on this issue as no body give advance money without interest.

Agreement done or not is depends on the Party it may be oral.

Fund should be raised through cheque. 

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