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Can a salaried person open a propreitor firm

Patel (NA) (25 Points)

24 April 2014

- Im a salaried employee working with an MNC

- I intend to start a real estate broking firm

- Can a Salaried Employee working in a MNC start a propertier firm

Is it legal ?

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9 Replies

CA Shubham Sarraph (CA CS PROFESSIONAL M.COM) (555 Points)
Replied 24 April 2014

Mr. Patel, it's depend on your contract with MNC. If there is any clause against it than it's not possible for you to involving in any other business activity.

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SONALI MISHRA (PROPRIETOR) (21 Points)
Replied 24 April 2014

I too agree with Shubham ji

Satish Makam (Asst. Manager - Accounts) (294 Points)
Replied 25 April 2014

When you are in government service, then it is not possible. As long as you are in private sector, it is as per your agreement. Most of the companies may not mention this clause. So you can carry on brokerage business.

Dipendra Prasad Poudel (Article Assistant ( Internal Audit) ) (578 Points)
Replied 25 April 2014

Can a salaried person become consultant of the same company?

CA Shubham Sarraph (CA CS PROFESSIONAL M.COM) (555 Points)
Replied 25 April 2014

Yes Mr.Dipendra.

Company can appoint an employee as consultant.

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Dipendra Prasad Poudel (Article Assistant ( Internal Audit) ) (578 Points)
Replied 25 April 2014

Thank you Mr. Shubham

Actually I am searching about this topic from past one week. When I talked with some HR personnel in social networking sites, some replied that it depends on organizational culture and HR mannual. When consulted with HR personnel of IT industry, she said generally IT industry is flexible with it.