It all depends upon the contract that you have signed with your current employer. If there is a clause stopping you from a startup then it is binding on you as it may have economic consequences if not adhered to.

The second question too depends upon thw contract agreement. It is the single most important document which determines your relationship with your employer and any other job/work you undertake.

You cannot during course of your employment work for start up in India or abroad 

2) you cannot  register start up in India during course of your employment 

1. It depends on the terms of your employment. Generally, it is not allowed as there is conflict of interest.

Please get the due diligence of your current offer letter and terms of employment by a lawyer in order to ascertain whether it can be done or not. 

You can open company on any one of the family members name but the transactions will be processed through you.

You can startup business like this, without your name involve in it and you will be totally involved in it.

You can do so provided not violating the terms of employment. It is rather good to start with someother name than of you to avoid further complication.

Hi

1. This is to be confirmed in accordance to the policies of the present company you are working with that they allow their employees to start their own company along with the job.

2. Yes, you can hold any other post in the any startup rather than being an frontline operator of a firm.

Get it clarified from your employer in written

Yes and any company or partnership can register as start up.

Individual / proprietor cannot register as start up.

You can work with any company or start your start up while in job. But this should not disclose to your current company.

The answer lies in your contract with your current employer. Almost all employment contracts — with few exceptions — prevent employees from taking up a second job  elsewhere (or moonlighting) during the term period of the contract. Is this legal?

While an employer can not prevent you from working elsewhere after you’ve left the company (as this is barred by Section 27 of the Contract Act), they can place such a restraint during the term of the contract. There are countless judgement of the Supreme Court including Niranjan Shankar Golikari vs The Century Spinning And Mfg.

Whether your particular contract allows moonlighting in some form — say so long as you don’t work for a competitor or yourself compete with your employer — is something one can’t say without looking at your contract.

It is not clear from what you posted whether your contract forbids you from taking any interest. Please clarify.

If it does forbid you, a possible way out could be that you establish a company that has no relation to the work you do right now for your current employer and (2) you don’t take any executive responsibilities in the new company.

If you are still unsure get your contract examined by a lawyer here or offline.

Respected sir...

1. You can work for your startup unless that was not mentioned in your contract that you have to work only for that company.
2. Yes you can work there    if that is not violation of there terms...

Working for the interest of the company mean you have to work for them priority and your startup will be at second end ...they have mentioned that indirectly but legally you are allowed to do so ...they can not take any legal action against you...

Thank you

Most people don’t start out as entrepreneurs. They choose to start their own business only after some level of work experience.

It could be because they don’t like the idea of having a boss and want to step out as their own. It could be because they learned critical skills that enable them to be a leader in their own right. It could even be because they came up with a great idea in the normal course of working.

You can start your company as long as your employment contract does not forbade you to do so. Employees in companies such as TCS, Infosys have explicit agreements in the employment contracts that says that you will not do any other work with any other business during the course of employment.

1. If your present company/employer do  not permit you to do a business simultaneously while you are employed by him then you will be in a problem. 

2. That will become dual employment and not permissible as per law especially if your employer objects to this. .

Leaving your current full-time job to start your own business can be risky. ... Keeping your job while starting your own business is a way of hedging your bets, granting you some guaranteed income as you work to develop your business on the side. If you keep your job, you can quit at any time

The most obvious drawback is time. If you’re working full time, you won’t have much time left over to pursue your own business. You’ll have to force all your work in the company to weeknights and weekends, which are typically harder times to do business. 

Working on your startup can also have a negative impact on your performance at your full-time job. If you find yourself distracted with new ideas or staying up all night to complete work on some facet of the business, you won’t be able to give your full attention to your job.

Eventually, your employers will notice, and you could wind up losing your safety net altogether. Or, if you can juggle both entrepreneurship and a full-time job, your family and personal lives may suffer. 

Unless your present company don't accuse you for dual employment. 

You can but without neglecting your earlier work and without their knowledge

It's illegal to have duai employment in india

1. See you can register a company though If your current company allows then only you can work otherwise if they find out as per policy say they may take steps.

2. See if your company policy is silent on working with other company you may do same though do take care they may accuse you of some date theft and read policy of company carefully.

In the employment contract that you executed with your employer there must be a clause which forbids you to pursue any simultaneous work in the same field while you are on the rolls of your employer. If there is no such clause in the contract then legally you are free to open the startup or work in another startup registered in India or outside India.

1. Even IF the "current offer letter" does not state about working or starting up your own Co., the Co. Policy for Employees needs to be checked and confirmed via the HR dept., /Directors. Check any Indemnity Bond signed by you for any adverse clauses & payable compensation /damages.

2. Subject to current employer Co. Policy (NOT Govt. organizations), you may start your own co. and additional work for another co., PROVIDED said work does not clash with the financial or commercial interest of the current employer Co.

Dear Sir/Madam,

Though the offer letter given to you by the present company may be silent regarding the some issues as working in the company of same type of business, working with clients, competitors or owning the start up of similar kind, but the same is unethical and against the natural laws. However, if you are willing to be independent and having your own venture of same kind, you are suggested to have one partner/relative of faith and then start a venture with him. Have control over the activities of the venture but don't any post/designation of any kind in that. The other person will be your fully faithful and will work under your direction. When you find that your venture starts working well, you may resign from your present job and take over your own venture. 

01. Is it allowed in India to register and work for startup while still working for my present company?

Answer - Yes. A person can be a Director of a company and an employee of another company at the same time. There is no bar to the same. 

You can be a director to maximum to 15 companies at the same period of time as per the Indian laws besides also being the full time employment to another company. Unless you have declared yourself as a whole-time director to one company your entitlement to be director to 15 companies stand true. 

A whole-time director is someone who dedicates his entire time to one company so that one particular company thrive and grow in the business world. 

02. If i cannot register a startup myself, can i work in another startup registered in India or Outside India?

Answer - No. Dual employment as per the Indian laws are not allowed. One can't work in more than two organisations at the same period of time unless one is the permanent job and another a volunteer or part-time job. 

You are also debarred from rendering your services to company which are based out of India when you are permanently employed at one institution whether based in India or outside. 

If you wish to do that you have to resign from your current job and have to become a full-time consultant rendering services to more than one company at any given point of time. 

Q. Where will you face difficulty while working in a company and also being director to another company?

A. time management - It will be really difficult for you to manage your time look into the affairs of both the companies one where you are employed and one you wish to run as a director.

B. Non-compete clause - If the company where you are employed and the company to which you are the director are in the same business and in the same domain of that business then this generic clause of the contract may play a crucial role. 

This clause is there to stop competition from thriving at the behest of the another's knowledge, expertise etc.

For e.g. if your company is in the business of writing codes for the software and the company you are trying to build is also about writing codes for the software then you are in same business. 

Now if you are using their knowledge base (IPR rights, codes which they have made it as a class and so on) to write codes for your client through your company then you are violating the non-compete clause and you are liable to be sued by that company. 

C. Confidential clause - Similar to non-compete clause this is also a restrictions towards usurping the knowledge data base of the company, business module, client data base etc. 

If you are found doing anything which I have mentioned above then you are in violation of confidentiality clause and you are liable to be sued.

What is the way around?

It's simple. Establish the business you want. Do it, but do that business by creating your own knowledge base, client base and so on. This means, doing a fair business is always allowed and doing unfair business is not allowed.

Both weight is possible even if you are working in any company and you want to start a computer you can go for a proprietary organisation otherwise you have to register your company for this purpose and you have to follow the procedure laid down in this regard it is not necessary that you have to leave your present organisation before you start your startup for the detailed advice you need to consult an advocate who may guide you in this regard.

Good luck!

1. Depends on the Agreement that you signed with your company. Go through and find out if it permits you for dual employment,

2. Again, it will have to been if your present employer and its work policy permits this. You may go through your employment agreement to confirm this.  

- There is no provision in Labour Laws , that an employee working in a private employee cannot do separate business , like a government employee cannot enter into dual employment, i.e. cannot do financial, gain from another source, unless he is authorized in writing by the concerned department. 

-  Even , As per Central Civil Services conduct rules , A government employee can invest in shares , debentures and mutual funds , but cannot speculate in any form. 

- Hence, you will have to follow the restriction & rules , which you have signed at the time of joining your position in the company. 

- If there is no restriction for the same ,or your offer letter/appointment letter does not say anything about the same, then you can legally open a startup in India or abroad. 

Ans: If the terms of your employment are very much clear that you while being in a permanent position in the company are not allowed to get involved in the same business line then you should ideally not get involved in something like this.

Firstly your appointment letter which contains Terms and Conditions will clarity your doubt.

In response  to your query:

1) You cannot open a startup / any business while working, it amounts to duel employment further it gives rise to conflicting  interests.

2) Thus, you cannot register said startup while working with another company either in India / outside India.

Hi 

You should check your company HR policies/ employment handbook/ appointment letter with your present company and if there are

1) Any prohibition / restrictive clauses from taking up  full time, part time, part- time , management ,  beneficial  in any start up (including ones that is promoted by you or others both inside & outside india) that may / likely to have any conflict of interest with your employment, then you should inform your employer of the same .

Please note that any offer letter may contain only terms of employment and will NOT contain prohibitive clauses. 

It is the rule of law that any  prohibitive/restrictive clauses will need to be outlined in company HR policy/ Employment hand book in writing and if there are NO such clauses, you can engage in working for a start up while still working for your present company. 

Hope this information is useful. 

1. Yes if your contract with your employer allows you to start your own company to give them competition.

2. Generally it is not allowed to work full time for two companies at same time and I don't think your offer letter allows you for double employment.

Hello,

When you are working in a government organisation you are barred to indulge in any business but in case of private companies there is no such law which prevents you from doing it, except in case you have signed a confidentiality agreement or non disclosure agreement with your present company.

Hope this helps.

Regards