Can a government employee open their own business


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 (3)


173 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.


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198 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.

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91 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.

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