You asked: Can foreign director give loan to Indian company?

Can a foreign director give loan to Indian company?

Restriction on borrowing of Loans from Foreign companies. As per the FEMA regulations, any individual is not allowed to borrow foreign exchange from an individual outside India or borrow currency in the form of Indian Rupees from a person outside India.

Can a company borrow from NRI director?

2 Borrowing in INR by companies in India: A company incorporated in India may borrow in INR, on repatriation or non-repatriation basis, from NRIs/PIOs after satisfying the following terms and conditions: i. Borrowing company does not and shall not: Carry on agricultural/plantation/real estate business; or.

Can a foreigner get a loan in India?

NRIs can get the personal loan amount from the bank in their NRE or NRO accounts. Most lenders provide the loan amount in Indian rupees. However, some banks also provide these loans in foreign currency. You may check the lender to know about the mode in which the loan amount is disbursed.

Can NRI director give loan to Pvt Ltd?

Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions: The loan should be free of interest. Minimum maturity period should be one year. The limit of loan is US$ 25.000.

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Can a foreign director give loan to company?

Yes . If you avail loan from non-resident director , then ECB guidelines will be applicable.

Can I take loan from foreign individual?

Lending By a Foreigner/ Non-Resident Indian to an Indian Person. A requirement of funds for private use can come at any point in time in a person’s life. … The borrow can receive the loan amount only by way of inward remittance from outside India or from an NRE, NRO, FCNR, NRNR, NRSR.

Can NRI take loan from resident Indian?

Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions: The loan should be free of interest. Minimum maturity period should be one year. The limit of loan is US$ 25.000.

Can I give loan to anyone?

“An Indian can only accept rupee loans from non-resident Indians (NRIs) or a person of Indian origin and not from other non-residents. … An Indian resident can also lend to an NRI relative. This loan can only be given for a period of one year and the same shall be interest-free.

Can NRI Open Pvt Ltd Company in India?

NRIs and Foreign Nationals must always choose to invest or start a Private Limited Company or Limited Company in India. … NRIs and Foreign Nationals are not allowed to invest or start a Proprietorship or Partnership or One Person Company in India, while FDI in LLP requires prior approval from the Reserve Bank of India.

When an NRI give loan to a resident the maximum tenure of the loan can be?

While a resident can avail loans with a maximum tenure of 30 years with some banks, tenure for NRI home loans is restricted. It is available within the range of 5-15 years. Extension beyond the term of 15 years is solely at the discretion of the bank and in exceptional cases only.

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Can NRI give loan to partnership firm?

Rupee Loan can be borrowed by any ‘Person Resident in India’ other than Indian company, accordingly Individual, partnership firm or proprietorship concern can borrow in Rupee from NRIs. Borrowing from Non Resident is always subject to ‘end use’ restrictions.

Can NRI give ECB?

No, NRI/PIO giving loan in Rupees to resident company by way of Non-Convertible Debentures (NCDs) through a public offer is not covered under the ECB framework. It is covered under Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 issued vide Notification No.