Nominally, the process is that banks lend money to individuals, and then individuals lend money to companies. For companies, they borrow money from individuals. Including the interest paid later, is also personal.
2. Can shareholders borrow money from banks and make private investments in the name of the company? Thank you.
Before giving you a loan, the bank must come to the public to apply for a company loan. If it wants to pay, it must be signed by the legal person to handle the company payment.
3. Can shareholders borrow money from the company as a reserve fund?
As long as it is related to the company's operation, you can borrow money, and there is no one-year limit. Real business can be reflected in real accounting.
Shareholders' loans are used for departmental reserve funds, travel expenses, daily necessities procurement, etc. It is recommended to keep relevant business-related evidence materials such as contracts, purchase documents and travel expense reimbursement documents.
Just a reminder! Personal income tax of 20% shall be levied according to the item of "income from interest, dividends and bonuses" if the loan of individual shareholders has nothing to do with business and the term exceeds one year. If the enterprise fails to fulfill its withholding obligation, it shall be fined more than 50% and less than 3 times.