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

Indian Subsidiary Seeks Advice on Borrowing from Parent Company; ECB Facility Not for Working Capital Needs per RBI Rules. A subsidiary of a Korean company, registered in India, seeks advice on borrowing funds from its parent company to cover operating expenses. The inquiry requests guidance on necessary procedures and approvals related to the Reserve Bank of India (RBI), legal, and taxation matters. The response indicates that while the parent company qualifies as a lender, the External Commercial Borrowing (ECB) facility cannot be used for working capital needs, based on the respondent's understanding.