If a froeign director transfer funds from their personal account to its employee for clearing the expense of the company formed in india.what is the applicaple section under companies act
Please Reply as its urgent
If a froeign director transfer funds from their personal account to its employee for clearing the expense of the company formed in india.what is the applicaple section under companies act
Please Reply as its urgent
This transaction may be considered as loan from director to the company.
Loan from director to the company is exempt from the deposit provisions u/s 58A under the acceptance of deposit rules, 1975. So there is no need to worry.
But remittance of money in india may be a problem from RBI perspective.
Views of othere learned members solicited.
Agreed wid the above view..
u have to check FEMA,1999 & rules made their under for remittance of foreign exchange.
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