About legality starting a business firm by a state govt servant
I am a state govt employee working as faculty in a state govt engineering college/ I want to start a software firm with my friend. Can I register as the owner of this firm? What are the legal issues w.r.t. civil services conduct rules for MP govt. employee? How can I be associated with this business firm leagally?
Asked 12 months ago in Business Law from Rewa, Madhya Pradesh
Hi, you being a whole time employee of the state Government engineering College you can't engage any other kind of business if you doing so you may lose your job.
2. You can start the business through your parents or in the name of your wife.
during period of your service you cannot carry on any business in your name
2)service conduct rules prohibit a govt servant from carrying on any trade or business
3) if you become partner of firm it amounts to misconduct and govt can take disciplinary action against you
1. You are gainfully employed with the state government,
2. You have a service conduct rule applicable on your service where it has clearly written that you can not have any other employment or business or engagement without written permission from your appropriate authority,
3. You shall be terminated if you are found running a business while being in the job,
4. You can start the said company in the name of your wife and work their during your off time without keeping any record of your engagement with the said business firm.
A full time and permanent government employee cannot engage himself in a private business as a partner or as a part time employee.
It can be considered as misconduct of the employee and he be subjected to disciplinary action which may even result into termination of his employment or any serious punishment affecting his government employment.
Alternately you can start the business involving any or your close relative, may be your wife or father or mother, but maintain that your name is not found in any record to leave you embarrassed.
Can I register as the owner of this firm ?
No, You are not eligible for starting a new business firm in your name. But you can take registration in your parents/ wife’s /relatives name. During period of your service you cannot carry on any business in your name. A government employee cannot engage himself in a private business as a partner or as a part time employee
If you are not obey the rules you may face legal proceedings from government subjected to disciplinary action which may even result into termination of his employment
You can actively participate in the firm but not legally you can't act as a partner or proprietor
No business or profession can be undertaken by a government employee. Starting of a firm would be treated as a misconduct on the part of the employee under the respective conduct rules.
Can a state govt. employee participate in a welfare trust/NGO/Non profit organisation? Can I register a trust/NGO and hold key positions/ membership in such an organisation?
Asked 12 months ago
Starting a NGO/Trust on own name or even acquiring a member ship in the so called non-profitable private trust shall come under cloud of suspicion.
You may be called to give explanations and details of your involvement including the source of funding for the trust which may be unnecessary harassment and torture.
You may need to obtain permission and Non- Objection Certificate from your Department and submit documents to the effect that its a non-profitable and charitable trust. There can be an embargo if it isa profit making or a Political organisations.
You need govt consent to form a trust or participate in NGO management
1. A State Govt. employee can be part of a non profitable organisation,
2. You can also register a non profitable organisation/trust and be a part of it including holding key positions,
3. You shall have to make sure that it is a non profitable/charitable organisation and there should not be any financial gain from it.
Unless it is an office of profit you can be a member of such NGO but the intimation thereof should be given to the department.