LawRato

Can a government employee open their own business


21-Mar-2023 (In Civil Law)
Hello All, I am having a doubt related to Government Sector in India.It was told by people to me that law does not allow government employees to have their own business. I am just eager to know that is there any Law for the same.if I am a Government Employee working under the central government then would I able to start my own business..?? Many time people in my contact came across excellent business ideas but they do not proceed due to the certain rumors(I am not sure is it a rumor or law ) that an employee working under government is not allowed by Govt of India to start their own business. One of my friends is still confused with this.he has an excellent idea of a startup but it was told by people that you cannot proceed because the law does not allow us. One has to resign from government sector to startup their business.
Answers (4)

Answer #1
580 votes
According to service rules, any government employee can not be open or run any business in his/her name. But if you want to run a business, for extra income, you can be start the same by the name of any member of your family i.e. wife, son, daughter, mother, father or brother.
People also ask

Can government employees show business income?

A Government employee is not allowed to earn any income other than his salary. He/She shouldnt do any side businesses. All side business are illegal. 03-Feb-2019

Can a govt employee do freelancing?

You may be able freelance if you are employed by the government, as long as your activities do not conflict with what you do as an employee. Check with your supervisor or employer to ensure that your employment contract allows for freelancing. 28-Feb-2023

  
Answer #2
876 votes
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.

Answer #3
839 votes
Hi ,
legally A government servant is not allowed business to do business in India . But they can do business in his spouse name and children name orany family members name and supervise the business.
Answer #4
229 votes
In India, government employees are subject to certain rules and regulations regarding their involvement in outside business or private employment while holding a government job. These rules are primarily in place to prevent conflicts of interest and ensure that government employees fulfill their official duties effectively. Here's an overview of what government employees should consider:
  1. Government Employee Conduct Rules: Government employees are generally governed by Conduct Rules or Service Rules specific to their department or organization. These rules often contain provisions related to outside employment and business activities. Government employees should carefully review and adhere to these rules.
  2. Permission Requirement: Many government departments require their employees to seek prior permission before engaging in any outside business or private employment. Employees should check with their department's administration or HR department to understand the procedures for obtaining such permission.
  3. Conflict of Interest: Government employees should avoid situations where their private business interests conflict with their official duties. Engaging in business activities that may create a conflict of interest can lead to disciplinary actions.
  4. Full-Time Employment: Government employees are typically expected to give their full-time attention and effort to their official duties. Engaging in a private business that competes with their government job or affects their performance adversely may not be allowed.
  5. Part-Time or Passive Investments: In some cases, government employees may be allowed to invest in businesses or engage in part-time employment that doesn't interfere with their official duties. However, they must still ensure that there is no conflict of interest.
  6. Disclosure: Some government rules may require employees to disclose their business interests and investments. Transparency is essential to avoid any perception of impropriety.
Helpful? LawRato LawRato

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Comments by Users

Guddu
I'm ex director in pvt ltd. Company . Can I join government job ??

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."