CA SHAHZAD RAHMAN (CA) (46 Points)
09 July 2012KInd Attention: Dear Ankur Garg Ji
My client is a private limited company dealing in software development for overseas market.
They are planning to introduce a foreign director who will in turn invest in the company. As I already know that Unsecured Loan from Director is not covered under Deposit Rules 1975 but considering that the Director is a foreign national, what other statutory requirements needs to be fufilled in this regard.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 22 August 2012
FEMA doesn't allow foreign loan for working capital purposes and unless the foreigner holds 25% or more shareholding.
Anuj
femaquery @ gmail.com
CAclubindia
