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)


240 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.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

182 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.

Popular Startup Lawyers


Advocate Nikhil Singh
Singh & Associates, Hubli
2 years Experience
Advocate Ricky Chopra
Karkardooma Court, Delhi
18 years Experience
Advocate Bala Janaki
330 Thambuchetty Street, Chennai
34 years Experience
Advocate Prerna Oberoi
Sector 41, Noida
7 years Experience
237 votes

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

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 Startup Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related questions


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



Related Articles