Karthik Shenoy 09 January 2018

Section 8 company loan from private ltd.

Hello,

Hope some one can help me out with this...

I’m a director for 2 different companies ( both being startup’s). 1 company is a private limited and other Section 8 company.

I want to transfer money from pvt ltd. to section 8 company, as we have bootlegged this money for business from family, friends and self

Can this money which is transferred be treated as a interest free loan to section 8 and whether this funds can be taken back by the pvt ltd ones the section 8 stabilises or starts raising funds from Though CSR

Your feedback shall be very valuable

Thank you in advance

KS

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2 Replies

balas (Chartered) 13 January 2018

Hi,

Yes. Pvt Ltd Co can lend to another company incl Sec. 8 Com. Loan repayment using CSR fund, provided conditionally by a company for use for certain activities only caanot be used for Loan repayment. Pls check with CSR funding company on purpose for funding.

Bala Srini FCA., LL.B.

94498-27834

cheryl dcruz 23 May 2022

Yes. Private Limited Company can advance to another company including Section 8 Company. Loan prepayment using CSR fund, handed conditionally by a company for use for certain conditioning only can not be used for Loan prepayment. Pls check with CSR funding company on purpose for backing.