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Can a Pvt. Ltd. company borrow money from an individual
28-Nov-2023 (In Corporate Law)
We have a pvt. ltd. company, I want to know if it is possible to borrow money from an individual who is not part of the company without giving up equity. Is there any way to register the individual as a member and then take money from him.
Hi.
No, private companies cannot take loans from individuals who are not a part of the company without giving up any equity, as it is prohibited by the Companies Act.
Yes an individual may register himself/ herself as a member of a private company as a director, Shareholder, etc, however, it is not recommended to get a registration as a member just for the sake of getting a loan from an individual.
No, private companies cannot take loans from individuals who are not a part of the company without giving up any equity, as it is prohibited by the Companies Act.
Yes an individual may register himself/ herself as a member of a private company as a director, Shareholder, etc, however, it is not recommended to get a registration as a member just for the sake of getting a loan from an individual.
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Adv. Ayantika Mondal
Bangalore | 400+ Answers
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