06 January 2011
A Foreign Company wants to start a new company in India and the main aim is to deal in investments
Since RBI dosent allow foreign company to deal in investments the referred company will be an Indian Company 1. with 2 or more Indian directors 2. 51% of the shareholding by Indians
Can this company borrow 100% of necessary loan in Foreign Currency?
07 January 2011
If it's a private company - no limits. It can borrow any amount.
However if it's a public company then subject to the approval of the members where the amount to be borrwed together with the moneys already borrowed exceeds the aggregage of the paid up capital and its free reserves (293(1)(d)).
CAclubindia
