Want to register my startup and I am a working personnel in a PSU

I am working in a PSU. Being a PSU working outside is not permissible. But my cofounder is unemployed. We want to register our startup. Can I register my startup with my cofounder? If not, what are other options. Please suggest.

Answers (3)

302 votes

The terms and conditions of your employment agreement would require to be reviewed in order to most appropriately advise you.
However, in such situations usually, if the work of your startup is unlikely to interfere with the PSU work and you do not intend to use the time or resources of the PSU for your startup work, there are ways of managing the same. Alternatively, you may participate in the startup as a dormant partner with your co-founder taking up an active role.

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240 votes

While being in one job one can never undertake any other job unless being duly permitted for the same.
You have two option with yourself - 1. Get permission from your organization to act as a Director of a startup in written, or 2. Ask your partner to initially come up with one person company (OPC). OPC do not require two person to run any company or business. Run that business with your advisory and then when you feel that your company is growing convert it in to private limited company and appoint a second director in the company on salary basis. Meanwhile you hold the shares of the company and keeps control of the company in your hand. Actual owner of the company is the one who holds the share of the company and not the one who is a director in that company.

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As you are working in an Psu you will require permission from your department before entering into any business or office of profit and it will also depend on the kind of start up you are looking to start and its legal structure

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