Loan from parent company abroad

It seems that you are willing to avail External Commercial Borrowing??

Are you willing to bring the ECB for financing your capital  expenditure plan??

Please read Master Circular on ECB on RBI site - Foreign Exchange Management Act

If yes then broadly you need to do following things

Compliance under Companies Act

1. Related Party Transaction Approval from the Shareholders of the parent Co.

2. check the borrowing power of the Board

 3. Board Approval

Complaince Under FEMA

1. Prepare statement justifying the entire utilisation of Fund

2. Prepare ECB Agreement with all terms and conditions after taking into consideration ECB Master Circular of RBI, prepare Drawdown & Repayment Schedule

3. File Form 83 to AD.

4. Get the LRN From RBI

5. Bring the Money , Utilise same strictly for the purpose specified in Form 83 & agreement .

6. Keep the record of each utilisation, file ECB 2 every month.

Regards,