CA Sunil Kumar CS (Chartered Accountant) (57 Points)
03 July 2022Whether A director in a private limited company who is the foreign passport holder and an Indian citizen can bring money into the company as and whenever required. is there any violation in this.
Are you asking about 2 separate directors - one foreign and one Indian, because a foreign passport holder cannot be a citizen of India as the Constitution doesn't allow dual citizenship.
There is not much compliance for Indian Director. A declaration is to be obtained stating that such money given to company is not out of borrowed funds, so that it can be classified as an Exempt deposit.
But yes a company can avail loan from Foreign director subject to FEMA Regulations.
https://m.rbi.org.in//Scripts/BS_FemaNotifications.aspx?Id=157
Further if money is to be brought in through issue of shares, the same is also governed by FEMA Regulations.
https://m.rbi.org.in//scripttts/BS_ViewMasCirculardetails.aspx?id=7355#9
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