Canadian Citizen can become a shareholder to the extent of his stake. For example, he may invest Rs 5 L towards capital for say 25% stake holding. The Indian shareholders will have to invest Rs 15 L towards equity. The authorised will then have to be increased to Rs 20L. The remaining Rs 3 L may then be in the form of a borrowing.
1 The purpose of transfer can be investment and loan. Let there be two separate transfers for investment and loan components.
2 Only the loan amount can be repaid whether or not the company makes profits. The company can only pay dividends on the equity component.
The Indian shareholders may buy back the shares as and when needed.
There will be tax liability on interest credited and also on the dividends paid. He may make payments and investments u/s 80C to reduce tax liability.
You need to appoint statutory auditor within one month of incorporating the company. You may check with him for regulatory compliances