Funds from Foreing Company

[Pradeep Kaushik]

Respected Sir,

we are a 100% subsidery of a Korean Company. We are Registered with ROC in India.

We are planning for Borrowing funds on interest from our parent company in Korea. The end use of the funds will be to meet our our regular operating expenses.

 Please suggest us, if any, procedure/ approvals, we have to fulfil for that Borrowings.

You are requested to clear all aspects related to RBI, Legal and Taxation.

Best Regards.

Pradeep Kaushik

[sunil jain]

Though the parent company is eligible lender but the ECB facility is not available for working capital requirements. This is to the best of my knowledge of the subject.

Thanks

CA Sunil Jain

9810140664

AI Summary

External Commercial Borrowings not available for working capital; parent can be an eligible lender but alternate funding routes required.
The parent company qualifies as an eligible lender, but the ECB route is not available for financing working capital; compliance with FEMA registration and applicable RBI and tax requirements must therefore be assessed and alternative inward funding routes considered.