The Companies Act, 2013 allows a Private Limited company to borrow funds from the following:
- Directors and their relatives
- Shareholders/ Members of company
- Inter- corporate Loan/ Loan from other Company
As per the Rule 1 (c) (vi) of the Companies (Acceptance of Deposits) Rules, 2014, Deposit doesn’t include any amount received by Company from any other Company (Inter corporate Loans) however it doesn’t include LLP and thus a private company is not allowed to take loan from LLP.
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