banner_ad

Loan from foreign director/shareholder

3991 views 2 replies

Friends

In an Indian company, 88% equity are held by foreign nationals. Out of 5 Directors, only one  is a Indian. The Non resident Directors/NR shareholders wish to give loan to the Indian company to meet its working capital requirements. How can this be done.

Will the lending be treated as ECB. But ECB cannot be used for working capital requirements. Then how can the funding be done? Is there any way except investment by way of shares/debentures.

Please shrae your valuable experiendes.

Regards,

Replies (2)

it is right as per fema you can not allowed to loan from foreign share holder for working capital, you have to follow ECb Guidelines

 

but you can take the loan in the form of debenture ,please check RBi circular for the same

 

You can recieve more share capital.

 

Anuj

femaquery @ gmail.com


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details