Counsel
Ask an expert!
Legal, accounting and compliance advice from qualified professionals.
You can be a shareholder of the company. If your company falls under 100% FDI under automatic route you can transfer the funds first for the purchase of shares of the company and can file FC-GPR with RBI. The Director of the company can give a loan to the company. However, it has to be Director's own money. According to company's act, the Director can...
Wazzeer Professional Network
ProfessionalHow to route funds to my future startup
I am an NRI , I am planning a online startup in India that provides software as service via online to usa customers. I would like to keep my father and father in law as directors, As I cannot/do not want to be director for now. However, I want to route money ( about 15 lakhs) from my account into the company. /what is the best way to do that ? Can I simply transfer money to my father account via wire or xoom and can he put that money into the company capital? Kindly advise. In addition to this I would like to know pricing details for formation/incoporation, and other needs ( Tax filings, payroll, accounting and other needs that I may have for startup) for the first year of the service.
-
Wazzeer Professional Network
ProfessionalYou can be a shareholder of the company. If your company falls under 100% FDI under automatic route you can transfer the funds first for the purchase of shares of the company and can file FC-GPR with RBI. The Director of the company can give a loan to the company. However, it has to be Director's own money. According to company's act, the Director cannot borrow the money for the purpose of lending it to the company or to purchase shares of the company. Hence it is not legally advisable for you to transfer money to your father's account and your father putting the money to the company.
about 3 years ago
View answer
How to route funds to my future startup
I am an NRI , I am planning a online startup in India that provides software as service via online to usa customers. I would like to keep my father and father in law as directors, As I cannot/do not want to be director for now. However, I want to route money ( about 15 lakhs) from my account into the company. /what is the best way to do that ? Can I simply transfer money to my father account via wire or xoom and can he put that money into the company capital? Kindly advise. In addition to this I would like to know pricing details for formation/incoporation, and other needs ( Tax filings, payroll, accounting and other needs that I may have for startup) for the first year of the service.
-
Wazzeer Professional Network
ProfessionalYou can be a shareholder of the company. If your company falls under 100% FDI under automatic route you can transfer the funds first for the purchase of shares of the company and can file FC-GPR with RBI. The Director of the company can give a loan to the company. However, it has to be Director's own money. According to company's act, the Director cannot borrow the money for the purpose of lending it to the company or to purchase shares of the company. Hence it is not legally advisable for you to transfer money to your father's account and your father putting the money to the company.
about 3 years ago
Looking to hire a professional from our handpicked community?
Explore our services, submit your request and let us do the rest for you.