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loan to Private limited company

CA Bhuvan (CA ) (83 Points)

18 March 2010

Can a Private ltd. company take a loan from an individual other than directors & their relatives.

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Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 18 March 2010

LOAN FROM INDIVIDUALS/OUTSIDERS

Kindly appreciate, A private limited company can take unsecured loan from its shareholders, directors and their relatives and the same would not be covered under section 58A and other deposit provisions as such transaction is exempt by deposit rules 1975.

But if a private company take unsecured loans from persons other than its shareholders, directors and their relatives the same would be considered as deposit under section 58A read with Companies (Acceptance of Public Deposit) Rules, 1975 and violation of section 3(1)(iii)(d).

Regards

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CA Bhuvan (CA ) (83 Points)
Replied 18 March 2010

It means that if Pvt. ltd. company will take unsecured Loan from Individual other than its director & their relatives it will be considered violation of section 3 ( 1 ) (iii) (d). So, it means that pvt. ltd. company can take secured loan from an individual.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 18 March 2010

Originally posted by : Bhuvan
	It means that if Pvt. ltd. company will take unsecured Loan from Individual other than its director & their relatives it will be considered violation of section 3 ( 1 ) (iii) (d). So, it means that pvt. ltd. company can take secured loan from an individual.

No.

Even secured loan is covered by the prohibition contained under section 3(1)(iii)(d) as this section does not make any difference between secured or unsecured loan. However this is my opinion. Wait for the comments of other members.

CA Bhuvan (CA ) (83 Points)
Replied 18 March 2010

can a director give a loan to the pvt. ltd. company after taking loan from any individual other than its relative.

Ankit Bakiwala (N.A.) (35 Points)
Replied 20 July 2011

Where should a beneficiary of trust be grouped in financials.

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Sanjeev (Financial Services) (21 Points)
Replied 28 August 2011

Pl. suggest can Limited company take loan from Privet lender (Propritership firm) which is registered under private money lender act without attracting 58A?

Regards

Sanjeev

Murugesh (Professional) (32 Points)
Replied 29 August 2011

Have a question related to buying a land in private limited company name.
Some facts about the company:

1. This is a new property development company and this is the first transaction happening in terms of financial transaction.

2. Company has a new bank account and new directors.

3. Company has a paid up capital of Rs 1 lakh.

Questions:

1. Lets say, the company is planning to buy a residential plot with a registered value of Rs 10 lakh. How should the money transaction for this land registration happen? Should the money be deposited in company's bank account and withdraw from that account?

2. If withdrawing from this account, can it be withdrawn using cash? Reason for this is the sellers of the land want the money by cash transaction.

3. What is source of money to company? i.e., who can fund the company for purchase of land? Can non-directors or non-shareholders fund money. If so, how to account them properly.

4. Is it possible to purchase this land without bringing the money into company's bank account and do a cash transaction? If so, how to account them properly.

Highly appreciate a knowledgeable CA to reply and Thanks in advance for your reply.

G.Bala Kishor (aaaaaa) (222 Points)
Replied 14 November 2011

Can a pvt co can take loan from persons other then directors and shareholders if yes then under which sec

Anil K Agrawal (Accountant) (23 Points)
Replied 16 June 2012

CAN A PRIVATE LIMITED COMPANY LEND MONEY TO OUTSIDERS AND EARN INTEREST

Priya (Company Secretary) (22 Points)
Replied 05 December 2013

Originally posted by : CA Bhuvan
	Can a Private ltd. company take a loan from an individual other than directors & their relatives.

In continuation of the above question i have one more doubt. A private limited company accepted a loan from its member and after some time the member transfered his shares to some other person. What is the position of such loan from the date of his transfer?

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Navaratan bokadia jain (Student CA Final ) (25 Points)
Replied 18 June 2014

Dear Sir,

Please advace meon below mention matters

1) company incorporation date 12th Dec 2012, Company c\want conduct AGm for the FY ended 31st march 2014 from the date of incorporation.As per Compnies act 2013 says 1st AGm should be held within 15 months from the date of incorporation. Kindly suggest me shall i conduct AGM for the FY ended 31st march 2013 and then 2nd AGM for the FY ended 31st march 2014.when should i conduct AMG?

2) Comapy(PVT LTD) having 4 Directors all are non retiring directos and they have subcribed to AOA as well as they all first directos of the company all are holding 25% shares each.How to remove one of the directos who is chairmain also?

RoHaN k (CA & CS) (308 Points)
Replied 18 June 2014

Unsecured loan are allowed to accept only from Directors , with a declaration that such amount is not out of borrowed funds.

Refer Section 73

Refer Rule 2 (c) (viii) of Chapter V - Acceptance of deposits by company.-which specificaly excludes loans from directors from the purview of deposit definition.