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One company for all business

Kumar (Partner) (149 Points)

01 July 2021

Can we register one pvt ltd or llp for all types of business? Like manufacturing of garments, machine, hardware, software, food, education, services etc.

Can we apply for all types of businesses and services ( more than 20) at the time of registration and do business of only one? Rest of them may be started in future?

Thanks

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Shubham Jha (127 Points)
Replied 02 July 2021

Members of the company can do anything benefiting their collective interests with their consensus but their act should not go beyond company jurisprudence for ex:- there is law that name of the company should match their main business

all the business that you have mentioned are an industry altogether different from each other and attracts different laws and compliance. Complying with all those industry specific laws are pretty hectic and excruciating so there is no point.

Thus a company shall have a main business and other ancillary business which is required to attain its main objective but doing business in different industry is not permitted under one name

For example, let’s discuss a software development company, the main activity of the company is to develop software for clients and deploy them in the market. This company can hire new employees and to make them used to with the process and services of the company they will have to give them proper training. Imparting training for the benefit of the company or to achieve the business goal is permitted but doing it as a lead service is not allowed. Also, a digital market can also be included as it relates to same field or industry.

Here, if the company starts to impart training to students as a service and with no relation to the actual production of the company it will be unrelated to the main objective. Training falls under the education field whereas software development falls under a different category and performing both under one roof is not permitted by RoC

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