Loan to foreign company

[Guest]

Hi

Can Individual give loan to foreign company?if yes what are the provisions?

Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

Giving loan to foreign companies is not covered under Companies Act. It may come under FEMA.

AI Summary

Individual loans to foreign companies likely fall outside the Companies Act and are governed by FEMA compliance. Whether an individual may extend a loan to a foreign company: loans by individuals to foreign companies are not governed by the Companies Act and may come under FEMA, so foreign exchange and external affairs regulations should be examined to determine permissions, restrictions and compliance obligations for such cross border lending.