Advertise With Us

    Guarantee given by Foreign Holding Company for its Indian sub. Co

    Posted By : Damini / Published on : 18-Aug-2020 01:07 PM / View : 285 / Comment : 0

    Print button
    It may appear like an Unsecured loan as no charge on the assets of the company, but giving Guarantee from Foreign Holding company for loan is secured to the bank . In case of default , Holding Co will have to pay to the foreign bank on its behalf, and in turn it can claim the payment from subsidiary Indian company; Also find out any counter guarantee or agreement between this respect and its registration.It is Secured Loan, backed by such Guarantee, to the bank .In short , it is secured loan to the Subsidiary Co also. So to avoid it as a, comply the law :

    Under FEMA , the Indian Company has to obtain prior RBI permission for getting such guarantee [contingent liability - obligation to pay to the Holding Co against such future]. . Then file the charges with ROC.under the Cos Act.
    Read more on : company indian holding foreign given guarantee

      Please Select Excel File:

    Other Queries from Damini
    What's New on

    Like us on Facebook
    Follow Us on Twitter

    We are always here to help you. Don’t hesitate to contact us anytime!

    +91-9988424211 or