Funds from Foreign Parent Company

vijay (Accountant) (877 Points)

06 February 2023  

X Pvt Ltd is subsidiary of a Singapore Company Y Pte Ltd ( holds 99.99 % shares) and Y Pte Ltd is 100 % subsidiary of Z Pte Ltd ( also a Singapore Company )    

X Pvt Ltd plans to start trading business ( Both Domestic & Export ) for which it needs huge funds which Z Pte Ltd is ready to provide. What will be the best way to transfer funds to X Pvt Ltd, can it be done only by way of loan or is there any other options available and also what will be the points to be considered while making such arrangement