Loan from foreign Company

This query is : Resolved

C.A.Suresh Gupta (Querist)
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05 June 2009 Whether a Branch of foreign Company can take a loan from its Head office to run the operation or for infrastructure.

if yes what rules and regulation will be applicable i.e pre approval from RBI/ FEMA or any other authority.

please suggest.

Sudhag

Sudhag (Expert)
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05 August 2011 Dear Sir,

Branch is run of the funds from the head office being foreing company only so in my opinion there is no question of taking loan from foreign company.

to run operation or to purchase immovable property both are allowed for branch.

Please be free to write further relating to FEMA queries.

Many thanks and best regards,
CA. Sudha G. Bhushan
sudhag999@gmail.com