Foreign Direct Investment

[THYAGARAJAN KALYANASUNDARAM]

Dear experts ,

One of my clients is a share holder and director in a company incorporated in Singapore. He is citizen and resident in India. He has already Invested his subscribed capital amount in that co. Now, he wants to send additional funds of USD 10,000 to the Company.

Kindly suggest me proper ways through which he can send the funds , can we treat it as loan from director to the Co? Or suggest me any other ways.

Thank you in advance.

AI Summary

Guidance on FDI Routes and Lending: Key Insights on Sections 179 & 180 of Companies Act for Company Directors An individual, a shareholder and director in a Singapore-based company, seeks advice on sending an additional USD 10,000 to the company. The response outlines that Foreign Direct Investment (FDI) in India can occur through the Automatic or Approval Route. Loans, although not explicitly defined in the Companies Act, 2013, are typically transactions with an expectation of repayment. The advice covers Sections 179 and 180 of the Companies Act, detailing the requirements for borrowing, including board and member consents. It explains scenarios for directors lending money, distinguishing between shareholder and non-shareholder directors, and the implications for private and public companies.