Dear Sir, Can a pvt. ltd. Company take loan from individuals being outsiders . Kindly clarify me as per Company Act and Income Tax Act. Thanks & Regards L.Jha
From India, Calcutta
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From India, Calcutta
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Yes, it can if it is authorized by its Articles of Association and the borrowing is within the limits specified under the Companies Act, and full compliance with the provisions is ensured.
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From India, New Delhi
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118We can assist you with a legal opinion and the implementation of the same if you wish to avail of our services. Please feel free to contact us.
From India, New Delhi
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Dear friends,
Sorry, a private company, by its very definition contained in Sec. 3(1)(iii)(d) of the Companies Act 1956, is prohibited from accepting deposits from persons other than its members, directors, and their relatives unless prescribed in the Companies (Acceptance of Deposits) Rules 1975. Here, the term "deposit" includes loans (Ref. Explanation to Sec. 58A).
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From India, Malappuram
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Sorry, a private company, by its very definition contained in Sec. 3(1)(iii)(d) of the Companies Act 1956, is prohibited from accepting deposits from persons other than its members, directors, and their relatives unless prescribed in the Companies (Acceptance of Deposits) Rules 1975. Here, the term "deposit" includes loans (Ref. Explanation to Sec. 58A).
Regards,
From India, Malappuram
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Section 3(i)(iii) of the Companies Act, 1956 prohibits any invitation or acceptance of deposits by a private company from persons other than its members, directors, or their relatives. This means that there cannot be any public issue by a private company for the acceptance of deposits, debentures, loans, etc., but through private contacts, it can borrow.
Dr. Harpreet Kaur
Associate Professor (Business Laws)
IILM-GSM
Greater Noida
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Dr. Harpreet Kaur
Associate Professor (Business Laws)
IILM-GSM
Greater Noida
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No, Pvt Ltd companies are not allowed to take loans from outsiders, i.e., those who are not members of the company, which is limited to 50 members.
Dear friends, please do not mislead people with incorrect advice given by Siddharth, Avika, and Sajid. A piece of advice: individuals dealing with company law-related issues should preferably seek guidance from a Professional Practicing Company Secretary or at least a Chartered Accountant. They will be able to provide advice and suggest remedies instead of relying on individuals who are not professionals in the specific area. Some of the opinions posted seem akin to a PhD doctor treating a sick person instead of a medical doctor.
Regards,
RJ Nair
988 65 23 182
From India, Bangalore
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Dear friends, please do not mislead people with incorrect advice given by Siddharth, Avika, and Sajid. A piece of advice: individuals dealing with company law-related issues should preferably seek guidance from a Professional Practicing Company Secretary or at least a Chartered Accountant. They will be able to provide advice and suggest remedies instead of relying on individuals who are not professionals in the specific area. Some of the opinions posted seem akin to a PhD doctor treating a sick person instead of a medical doctor.
Regards,
RJ Nair
988 65 23 182
From India, Bangalore
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Hi, My company is a Pvt Ltd Co and we have taken almost all banks loan. Ask your account team to aplly for it. MK
From India, Bangalore
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From India, Bangalore
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Yes, the private limited company can take a loan from individuals, but the amount of such loans can never be more than Rs 20,000. Let's consider an example:
- Loan taken: Rs 20,000
- Repaid: Rs 4,000
- Loan taken again: Rs 3,000 (admissible)
- Loan taken again: Rs 3,000 (not admissible as it crosses the Rs 20,000 limit at this point)
From India, Calcutta
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- Loan taken: Rs 20,000
- Repaid: Rs 4,000
- Loan taken again: Rs 3,000 (admissible)
- Loan taken again: Rs 3,000 (not admissible as it crosses the Rs 20,000 limit at this point)
From India, Calcutta
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Proposal-Privat e-Limited-Compa ny-Registration .pdf