can pvt ltd co accept loan

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Alpana

Alpana (Querist)
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22 May 2007 can pvt ltd co accept loan

S N KEDIA

S N KEDIA (Expert)
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22 May 2007 A pvt ltd co. can accept loan only from:
i) Shareholders
ii) Directors
iii) Other bodies corporate
for the purpose of their business. However, if the pvt ltd co want to do lending business than it has to take NBFC certificate.

Sunil Dandekar

Sunil Dandekar (Expert)
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22 May 2007 A Pvt. Ltd. Company can accepts loans from a)Members, b) Directors and c) Relatives of Directors ( not members - Note ).

The Relative is defined in the Companies Act, 1956 which may be referred to.

Other than above a pvt. ltd. company is prohibited from accepting deposits or loans from any other person.

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CA Nikita

CA Nikita (Expert)
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20 June 2007 hope the answers above resolves your query

CA Mani

CA Mani (Expert)
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01 August 2007 Hey,

I think sunil have to modify his answer.

Pvt Ltd Co can take loan from Body corp's also. (Inter-Corporate Transactions)

Srinath A. N.

Srinath A. N. (Expert)
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08 October 2007 The prohibition is only for unsecured loan from outsiders (exept from other stated above). A pvt. Company can accept loan from any person on security.