loan from directors

Dear Ankush,

You can treat the money received from the NRI Director as loan if it is actually received as loan or as share application money whatever the case may be.

As per my opinion, there is no provisions in the Companies Act, 1956 which prohibits receipt of money from NRI Directors.

However, there is one provision which talks about Loan to Directors (Section 295 of the Companies Act 1956)

Regards,

Being pvt. ltd. company if he is director as well as member you can take loan from the Director. U can't accept deposit but loan u can but beware FEMA will be attracted.

Others view solicited.

Dear Ankush

when you have received the funds from NRI, the purpose of remittance might have mentioned on the FIRC unless the fund was remitted through any account maintained in india. further the ECB Guidelines need to be taken care in this matter. 

Regards

Vishal

Dear Vishal,

Under ECB guidlines individual is not recognized lender, therefore for the transaction loan from foreign director, ECB guidlined is not relevent.

CS. Anjani Kumar

Loans from NRI's are covered under Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 and Foreign Exchange Management (Borrowing or Lending in Rupees) Regulations, 2000, which clearly prohibits borrowing from NRI's by COMPANIES  without RBI approval.

Anuj

0-9810106211

Loan from NRI is not permitted to be taken by INDIAN COMPANY on repatriation basis.

The same is only permitted under non repatriation basis.

Also the period cannot exceed 3 years.

The said funds should not be used for real estate activities.

For non repatriation basis, is prior RBI permission is needed ? Which office will grant so, if required. RBI mumbai or say RBI kolkata if RO of the company is at kolkata