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We are planning to invest in our startup by aggregating loans from shareholders, is this possible and what are the legal provision for this?

Yes, you can very well convert the loan into share capital. There is provision for that under Section 62(3) of the Companies Act, 2013. 

Procedure for conversion of loan into shares:

1. Before taking the loan - Approve terms of the loan by passing a special resolution by filing special resolution in E-Form MGT14 within 30 d...

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