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

Director loans: classification as deposits or loans determines Companies Act compliance and disclosure obligations.
Money advanced by a director to a company is treated according to source and recipient status: advances from borrowed funds may amount to deposits from members or the public and attract the Companies Act deposit regime and charge/credit rating requirements; advances from a director's own funds are treated as loans if accompanied by a written declaration that the funds are not borrowed, with mandatory disclosure in financial statements and potential Form DPT 3 filing obligations.