Can Indian company borrow from foreign company?

An Indian entity can acquire a loan from a foreign company under two routes of investment. Automatic Route- Under the automatic route, prior approval is not required for any form of investment. Therefore a borrower can get a loan from a foreign company without the prior approval from the Government of India.

Can Indian company take loan from non resident?

A company incorporated in India under the Companies Act can borrow money from an NRI and the borrowing can be both on repatriable and non-repatriable basis, ie the loan amount can be repaid either in India or the loan amount can be repatriated to the bank account of the NRI maintained outside India.

Can a foreign company give ECB to Indian company?

In this context, a direct foreign equity holder with minimum 25% direct equity holding in the Indian subsidiary, an indirect equity holder with minimum indirect equity holding of 51% in the Indian subsidiary, or a group company with a common overseas parent, is permitted to provide an ECB to its Indian affiliate.

IT IS SURPRISING:  What is the time change in India?

Can a company take loan from foreign director?

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.

How can I get loan from outside India?

The loan can be received only in two ways. The first way is to debit the NRE/NRO/FCNR account of the NRI and give the loan to the Indian resident. The second way is by inward remittance from outside India. The loan cannot be given for more than three years.

Can we take loan from foreign?

A company can get a soft loan through two routes- the automatic route and the government route: … 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 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 Indian company take loan from foreign subsidiary?

An Indian entity can acquire a loan from a foreign company under two routes of investment. Automatic Route- Under the automatic route, prior approval is not required for any form of investment. Therefore a borrower can get a loan from a foreign company without the prior approval from the Government of India.

IT IS SURPRISING:  Who is the secretary of Hockey India?

How can I get LRN from RBI?

Loan Registration Number (LRN): Any draw-down in respect of an ECB should happen only after obtaining the LRN from the Reserve Bank. To obtain the LRN, borrowers are required to submit duly certified Form ECB, which also contains terms and conditions of the ECB, in duplicate to the designated AD Category I bank.

Can a foreign holding company give guarantee to Indian subsidiary?

Guarantees for subsidiary by foreign holding firm will act as security for loans. Banks had interpreted Section 185 of new Companies Act to mean that they could not extend loans to subsidiaries on strength of guarantee provided by holding firm.

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.

Can individuals take loans from outside India?

iv) A resident individual will be permitted to service loans taken overseas earlier as a person resident outside India subject to terms and conditions and limit as specified by the Reserve Bank from time to time. 9. Any borrowing under erstwhile regulations can be continued as permitted up to the due date of repayment.

Can a company borrow 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.

IT IS SURPRISING:  Why is Indian Cave closed?

Can I give loan to NRI?

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.