An indian based comapny can lend the money from Foreign company for its working capital.
If it can. Please suggest ...
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FEMA-Working Capital Loan
Replies (5)
it is capital account transaction so u have to follow rbi regulations
A Person Resident in India (PRI) can raise loan in foreign currency from a Person Resident Out of India (PROI). Its a Capital Account Transaction and has been permitted by RBI in Schedule 1. However one has to follow prescribed conditions, file prescribed declaration and enter into transaction with in prescribed limits given in the regulations of RBI relevant to the transaction.
what are the prescribed conditions.... may I know please
The ECB guidelines donot permit loan for working capital purposes
Hello,
Please click the following link to know more about the subject:
https://rvseckarfema.blogspot.com/2010/09/can-ecb-raised-for-repayment-of-term.html
Regards
R.V..Seckar
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