Pvt Ltd company to borrow money from Individual

Pvt ltd 1263 views 1 replies

Vinod

24 Points Joined May 2011

Can Pvt Ltd company borrow money from a Director relative. i.e. Sister, Brother in Law and Father in Law.

If yes, can we pay them interest???

How long we can take their money, 2 yrs, 3 yrs, 4 yrs???

Replies (1)

Jyotika

study study n study

147 Points Joined February 2011

Yes a pvt ltd company can take loan from relative of Director, it is exempt from definition of deposit under rule 2( x) but relative has to give declaration that it is not borrowed money, regarding period i dont think there is any limit, rate of interest I am not sure but normally its at prevailing lending rate of bank.

thanks

Csjyotika