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  • Government employee partnership firm

I am a government employee. Can I join partnership firm as sleeping partner?
Asked 4 years ago in Business Law

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15 Answers

you can be sleeping partner in partnership firm 

 

however before joining firm as sleeping partner obtain prior consent of authorities 

Ajay Sethi
Advocate, Mumbai
94917 Answers
7570 Consultations

5.0 on 5.0

Yes, a government employee can invest in a limited liability partnership/partnership but being a partner it is not mandatory to take part in the daily affairs of the firm.


He can only be a sleeping partner and cant be a whole time.

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

1. Govt. Employees are barred from any conducting any "financial ventures" of any kind, in anyway whatsoever & which-so-over....

2. For violation of above, punishment upto dismissal is applicable.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

No, you are in full time employment and as per service rules you may not start any business as partner of register a business.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

There are restrictions for a government employee to do business simultaneously in any form or mode.

Sleeping partner  also  means that you are involved in the business.

 

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

Being govt employee you can't as it will be dual employment

Prashant Nayak
Advocate, Mumbai
32064 Answers
183 Consultations

4.1 on 5.0

No, A government employee is not allowed to run a private business, neither is he allowed to work anywhere else as a part-time or full-time employee. This is against government rule and hence person who is found can be charged for breaking the law.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

See in terms of your employment rules you can obtain the requisite permission from the appointing authority and can start the firm as sleeping partner.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

 No you cannot do any form of business whether it is partnership or proprietor ship firm. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1) you are govt servant you cannot run coaching center 

 

2) you need licence under shops  and establishment act 

 

3) you need to open bank account in form name  fulfill KYC formalities 

 

4) registration under GST if turnover is over Rs 20 lakhs

Ajay Sethi
Advocate, Mumbai
94917 Answers
7570 Consultations

5.0 on 5.0

Coaching of what faculty ? Non professional course, no registration required.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

If you want to open a small scale coaching there is no need of license but for opening coaching on a large scale, that is, it intends to be the size of an institution then, you needs licensing. You need to get a trade license and pay tax for the revenue generated through the centres. If the financial gain of the centre exceeds 9 lakhs per annum, registration of the business becomes mandatory and service tax becomes payable within 30 days.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

There is no specific law or provisions of law for establishing online coaching center.

All businesses are required to be registered under the Shops and Establishments Act with the inspectorate of that area. This must be done within a month's time of setting up the business- subsequent to which a statement is to be issued to inspector.

But, if your coaching centre intends to be the size of an institution, you would need to get a trade license and pay tax for the revenue generated through the centre. If the income exceeds 9 lakhs per annum, registration of the business becomes compulsory and service tax becomes payable within 30 days.

T Kalaiselvan
Advocate, Vellore
85112 Answers
2215 Consultations

5.0 on 5.0

See legally you cannot do such business wherein you participate full time or part time. For coaching institute as such no compulsory registration is required. 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Nothing just a place you need to get shop and establishment license. If no fixed place then no need

Prashant Nayak
Advocate, Mumbai
32064 Answers
183 Consultations

4.1 on 5.0

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