Deposits/ Loaons from NRI Director

A private limited company can accept deposits /  loans from NRI (POI) Director.

Hello,

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https://rvseckarfema.blogspot.com/2010/09/can-pvt-company-accepts-deposits-from.html

Accepting deposits from NRI Director will fall under FEMA and FEMA regulations have to be observed.

R.V.Seckar

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Dear Mr. Seckar,

As per Section 3(1)(iii)(d) a ' private company' cannot invite or accept deposits from persons other than its members, directors or their relatives.

So my understanding is, acceptance of deposits from NRI director / shareholder will not make the company loose its identity as 'private company'.

Is there any  restrictive provisions contained in FEMA with regard to  deposits by NRI director / Shareholder?

Originally posted by : Jayashree S Iyer
	Dear Mr. Seckar,   As per Section 3(1)(iii)(d) a ' private company' cannot invite or accept deposits from persons other than its members, directors or their relatives.   So my understanding is, acceptance of deposits from NRI director / shareholder will not make the company loose its identity as 'private company'.   Is there any  restrictive provisions contained in FEMA with regard to  deposits by NRI director / Shareholder?

 Hello Mr.Seckar,

Am too of the same opinion as Jayashree Iyer Ma'm.

One of the conditions of private company is

"[(d) prohibits any invitation or acceptance of deposits from persons other than its members, directors or their relatives:]"

But it does not anywhere talk about status of Director/ member being resident or non -resident.

So taking loan /deposit from them shouldl not loose the character of pvt ltd company.

Need further your advice.

regards

Santosh Shah