ankush (Article) (43 Points)
25 June 2010
Pl guide me whether a NRI director give loan to a pvt. ltd. co.
We have received fund from our NRI director , we want to treat it as loan , can we do so or treat it as share application money.
Thanks and regards
Ankush
Ratti Wahal
(Company Secretary)
(139 Points)
Replied 25 June 2010
Dear Ankush,
You can treat the money received from the NRI Director as loan if it is actually received as loan or as share application money whatever the case may be.
As per my opinion, there is no provisions in the Companies Act, 1956 which prohibits receipt of money from NRI Directors.
However, there is one provision which talks about Loan to Directors (Section 295 of the Companies Act 1956)
Regards,
vivek
(CS)
(751 Points)
Replied 26 June 2010
Being pvt. ltd. company if he is director as well as member you can take loan from the Director. U can't accept deposit but loan u can but beware FEMA will be attracted.
Others view solicited.
Vishal Dang
((Company Secretaries))
(93 Points)
Replied 26 June 2010
Dear Ankush
when you have received the funds from NRI, the purpose of remittance might have mentioned on the FIRC unless the fund was remitted through any account maintained in india. further the ECB Guidelines need to be taken care in this matter.
Regards
Vishal
Cs. Anjani Kumar
(Associate)
(21 Points)
Replied 12 January 2011
Dear Vishal,
Under ECB guidlines individual is not recognized lender, therefore for the transaction loan from foreign director, ECB guidlined is not relevent.
CS. Anjani Kumar
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 14 July 2011
Loans from NRI's are covered under Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 and Foreign Exchange Management (Borrowing or Lending in Rupees) Regulations, 2000, which clearly prohibits borrowing from NRI's by COMPANIES without RBI approval.
Anuj
0-9810106211
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 17 July 2011
Loan from NRI is not permitted to be taken by INDIAN COMPANY on repatriation basis.
The same is only permitted under non repatriation basis.
Also the period cannot exceed 3 years.
The said funds should not be used for real estate activities.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 17 July 2011
For non repatriation basis, is prior RBI permission is needed ? Which office will grant so, if required. RBI mumbai or say RBI kolkata if RO of the company is at kolkata
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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