Can a company take loan from foreign director?

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

Can a foreign director give loan to company?

Yes it is allowed. A company cannot give loan to director without paying tax but a director can give loan to a company. However tax has to be paid on interest paid.

Can a company take loan from NRI director?

Yes. A director can give loan to the company. There are no restrictions. However the interest rates shoul be in tune with market and should not be high thus giving extra profit to the director at the cost of the company and the shareholders.

Can a Indian company take loan from foreign company?

Borrowing from an overseas company or a Non-Resident Indian is regulated by the Foreign Exchange Management Act, 1999. … Loans from foreign companies can be availed by Indian companies and entities. However, entities have to comply with the provisions related to foreign exchange management act.

Can a non-resident director give loan to an Indian company?

A resident Indian or a company registered in India can avail loan from an NRI on repatriable or non- repatriable basis. 2. Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, as amended from time to time.

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Can an individual take a foreign company loan?

A resident of India cannot borrow in foreign exchange from an NRI. However, under certain situations, RBI may permit a person to borrow in foreign exchange from a person outside India. … A loan in foreign exchange can also be taken by resident Indians from their close NRI relatives.

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 private limited company take loan from NRI?

No, The NRI can’t give loan to Indian Company either in foreign currency or in rupees.

Can I give loan to anyone?

Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of ‘family’ under the Income Tax Act) during a financial year is taxable. However, if it’s a loan (with or without interest), it becomes tax-free.

What is non repatriation?

These NRI-only accounts are designated by law as repatriable or non-repatriable. … An NRO account is a non-repatriable account, meaning its funds cannot be transferred back to the NRIs country of residence nor can they be converted to any foreign currency.

Why do companies take foreign loans?

Refinancing rupee loans by borrowing in a foreign currency may be more attractive in terms of lower interest rates. … If the foreign currency loan is repaid from the company’s foreign exchange earnings, this volatility may be offset in an economic sense.

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Can I take loan from foreign friend?

People resident in India may borrow, both in rupees or foreign currency; but conditions apply. In case of borrowing in INR from NRIs/PIOs, these terms and conditions need to be complied with… * Borrowing shall be only on a non-repatriation basis.

Can I take loan from foreign bank?

Approval Route: Under the approval route, in order to get a loan from a foreign entity, the borrower is required to submit an application with the RBI in the prescribed form through authorized dealer as specified by the RBI.

Can I take loan from NRE account?

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 partnership firm take loan from NRI?

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. … Borrowed funds shall not be used for re-lending.