Interest free loans from directors in private limited company is acceptable?
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(7067 Points)
Replied 21 February 2025
amelia taylor
(blog)
(22 Points)
Replied 17 March 2025
A company accepting a loan from directors of the company or a relative of the director shall comply with the following: The Director of the company or his/her relative, shall furnish in writing a declaration to the effect that the amount is not being given out of borrowed funds; and Compliance with these legal provisions and the requisite disclosures in the financial XXL WINE statements is crucial for companies engaging in such financial transactions. If this is the case, the good news is you are able to charge the company interest on any money you have paid in from personal funds that has yet to be repaid
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