you cannot start business during course of your employment with PSU

2) it amounts to misconduct and disciplinary action would be taken against you

3) you can if you so desire seek permission from your employer for being partner in LLP

Dear Client,

Legally, a government employee is not allowed to do any business in India. However, that doesn't stop them from doing one. They can start a business on their spouse name, or children's name and supervise the business.

Further, Government employees also must secure the permission of an ethics committee prior to starting side businesses. The side business generally must be separate from the day-to-day work of the employee.

Next, A Government Employee can be a Partner or Director however subject to restrictions. He can only be a sleeping partner and cant be a whole time or part time director. He can be a non-executive director. However such appointment as a director or becoming a sleeping partner may require the approval of the concerned department of the Government.

you need to intimate your employer of your investments made in start up even if you are sleeping partner

You need to intimate the Employer and seek consent in case of sleeping partner also, though if you are working with government you cannot take up any post and neither can do any other business but you can make investment and can be a sleeping non working partner.

Kindly seek permission before you invest or start work.

If you are in full time employment and want to invest in LLP then at what capacity?

You may not take up any position till you leave the present employment and you will not get NOC as this is against the service rules.

At the time of leaving the company you will get a relieving letter, no need for you to obtain any kind of NOC

If it is so can I invest in a start up and own 50% of shares in lieu of my monetary contribution to promote and help set up a business and do I need to intimate my current employer. I will not be holding any official position in the start up if I am not wrong I will be a sleeping partner in the company .

If the employment terms of the PSU allows you for the same then you may go ahead and be a sleeping partner, but to the best of my knowledge you can not hold any office of profit.

Regards

Government servant cannot occupy/participate in part-time job or any other business.

Hence, you cannot on papers start this business.

Yes, you can be an investor.

I am working with a public sector and want to start a news agency. The form of the company will be LLP with myself as one of the designated partner. Do I need NOC from my current employer and if yes what should be the format of the NOC

You may not be permitted in law to do business while you are employed and drawing salary from an organisation.

The question of NOC will arise only if law permits you.

You may enquire about this from your administrative office or HR and ascertain if you can be permitted for this and you may get the format also from there itself if they permit you.

If it is so can I invest in a start up and own 50% of shares in lieu of my monetary contribution to promote and help set up a business and do I need to intimate my current employer. I will not be holding any official position in the start up if I am not wrong I will be a sleeping partner in the company .

Sleeping partner or an investment into the startup company as a partner will also be considered as business which may not be permitted while being gainfully employed in a sector.

1. A PSU employee is NOT entitled to conduct any other business of profit and neither a NOC for the same can be issued by his Employer.

Keep Smiling .... Hemant Agarwal