Korgaonkar K A
Ba,llb,mpm,dir&pm,dll&lw,d.cyber
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Hi
While working as an employee in one employer, can we work for own company (Pvt. Ltd). I mean, I want to establish a Product Based Software Development Company and make it to run smoothly while working in another Software Development Company. If so, is there any legal issues ?
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Dear pvvsnm, It depends on your Employment Contract with your current organization.Which would be clearly mentioned in your appointment letter or in your company 's COC. Regards Priya
Thanks Priya for your quick response.

There is no such contract written between us. Also I did not get any offer letter from them and I did not sign on any employment related documents. Our company is small and it is not private/public limited company in INDIA. FYI, I am just working for an MNC company (Client) which is listed in World Top 10 list as a Vendor through our employer. If this is the case, can I go ahead ?. I don't know what are the contracts written between our employer (supplier) and client and I did not sign on any documents when I moving to client location.
Dear Pvvsnm,
You must have settled down in your own company as a director.
Though your thread is very old, I would like to respond it so that this discussion may bring some value addition to our knowledge.
Even though there is no written contract between you and your employer or no appointment letter is issued to you by your employer or there is no specific clause in the appointment letter, certain conditions are implied of / on your appointment.
Accordingly, when you accepts any employment you are suppose to perform your duty wholeheartedly. If you involved yourself in other activities out of your employment, it definately affects your employment. Therefore, the employer can object on such activities out of your employment. If there is any conflict of interest due to such activities, the employer can even take appropriate legal steps against you.
I invite other members to discuss on this issue.
Hi Everyone, I have similar situation i am a tech entrepreneur, i have registered a private limited company but things are not going well as financially and started for job searching and got selected in interview in one the leading IT MNC.
Now to join this MNC shall i resigned from directorship to become employee of this company.
My own company had 2 director can keep it as if is (not filings with MCA) or shall file Resignation with intimation the same to MCA.
I plan to don't close my start up which not going well currently but may go will in future. Second don't want to act as any illegal activity towards my NEW employers(MNC IT Company). I have read many articlas says you can be work at any other company being director of other company as smae time BUT here i am the founder and first director not independent director or not non executive director. In my company there only 2 director.
Can a Company director be an employee of another company?
Definition of an employee
An employee is an individual who was hired by an employer to do a specific job. the employee is hired by the employer after an application and interview process results in his or her selection occurs after the applicant is found by the employer to be the most qualified applicant to do the job.
The Companies Act, 2013 was introduced to bring forth changes in company law to match current business trends. There is no provision that expressly mentions that a director can be an employee of another company nor does it prohibit the same.
The director is on the driver’s seat for the company, the director is responsible for its company’s existence and future depends on the director’s intellect and his ability to predict a situation.
In short if one is an executive director then it is quite difficult for one to be an employee, for obvious reasons as it could be challenging and pushing human limits and ability.
It is easy to become an employee or a director in another company/organization when you are on the non-executive part of directorship.
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