Company law
Querist :
Anonymous
(Querist) 04 November 2011
This query is : Resolved
Whether a pvt.ltd company can accept deposits from public.
If not, can they accept loans.
can they pay interest on such loans.
TDS application etc.
Raj Kumar Makkad
(Expert) 04 November 2011
It all depends if written permission has been provided by Reserve Bank of India to such company or not. RBI regulates terms and conditions necessary for this purpose so visit official website of RBI.
Sailesh Kumar Shah
(Expert) 05 November 2011
there is no question of role of RBI. All matters in query is mainly related to the companies act.
Question:Whether a pvt.ltd company can accept deposits from public.?
Answer: No, it can't not accept.
Section 3(1)(iii)(d) of the Companies Act, 1956 a Pvt. Limited Company probhits from inviting or accepting deposits from persons other than its members, directors or their relatives.
Sailesh Kumar Shah
(Expert) 05 November 2011
So, Pvt. company accepts loans from its members, directors or their relatives.
Further, pvt. company accept loan from other company, bank u/s 372A of the companies Act.
Question:can they pay interest on such loans.
TDS application etc.
Answer: Yes, co. pay interest after deducting tds.
prabhakar singh
(Expert) 05 November 2011
I agree with Expert Shailesh Kr. Shah opinion.
Advocate. Arunagiri
(Expert) 05 November 2011
Pvt limited company can accept deposits. They should get a permission from the RBI, under classification of NBFC.
They can pay interest also.
