Can enterprises borrow money from each other, can they sign an agreement for interest free loans?

Mondo Social Updated on 2024-01-31

1. Can enterprises sign interest-free loan contracts with each other?

1. Interest-free loan contracts can be signed between enterprises. The subject of the loan contract may be a natural person, a legal person, or other organization. As long as the loan contract is concluded in accordance with the law and does not contradict the true intention of the parties, enterprises can conduct financing through the loan contract.

2. Legal basis: Article 2 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.

When a lender initiates a private lending lawsuit with a people's court, it shall provide proof of creditor's rights such as IOUs, receipts, and IOUs, as well as other evidence that can prove the existence of a legal relationship between loans and loans.

Where the creditor's rights vouchers such as IOUs, receipts, and IOUs held by the parties do not indicate the creditor, and the parties holding the creditor's rights vouchers file a private lending lawsuit, the people's court shall accept it. Where the defendant raises a factual defense against the plaintiff's creditor qualifications, and the people's court finds that the plaintiff does not have the creditor qualifications upon review, it rules to dismiss the lawsuit.

2. What is the process for enterprises to apply for business licenses?

The process of applying for a business license is as follows:

1. Apply for pre-approval and registration of name at the Industrial and Commercial Bureau

2. After the pre-approval is passed, submit the articles of association, shareholder information and other materials

3. If the materials are reviewed and the registration conditions are met, the notice of establishment registration shall be issued

4. According to the time of the notice, receive the business license.

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