Loan from foreign director

Pvt ltd 1223 views 1 replies

KInd Attention: Dear Ankur Garg Ji

My client is a private limited company dealing in software development for overseas market.

They are planning to introduce a foreign director who will in turn invest in the company. As I already know that Unsecured Loan from Director is not covered under Deposit Rules 1975 but considering that the Director is a foreign national, what other statutory requirements needs to be fufilled in this regard.

 

Replies (1)

FEMA doesn't allow foreign loan for working capital purposes and unless the foreigner holds 25% or more shareholding.

 

Anuj

femaquery @ gmail.com


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