Is My Experience Valid if My IT Company Isn't Registered with MCA in India?

Hi,

I am working under a company which is a registered IT firm, but it's not registered under MCA in India. I have been working here for 8 months. Will my experience count if I apply to a reputed company in the future? I am receiving a consolidated salary of 7500 without any deductions in cash. My employer has mentioned that he will provide an experience letter upon leaving this organization. I would appreciate any suggestions.

I am unable to understand the abbreviation "MCA" you have used. If it is "Ministry of Corporate Affairs", still I am at a loss to understand the importance or implication of your company's registration with the same or not.

If what you mean is that your company is not registered under the Companies Act, the validity of your experience there, in my personal opinion, depends upon your employability and not on the size or status of the company or the length of your experience there.

The problem here is not the fact that the company is not registered with the MCA. In any case, if it is a partnership firm or a proprietary, then it will not be registered with MCA.

A bigger problem would be the fact that you are getting paid in cash. Companies want to see the payment proof in the bank when they do the verification.

Message me your details. I am curious about what you are doing there in terms of the platform and work experience.

There are various forms of doing business such as a Company, Partnership Firm, Sole Proprietorship, Limited Liability Partnership, etc. It is irrelevant whether it is a Company registered under MCA or any other form of Business Entity as far as your experience is concerned.

Most IT firm startups are in the form of sole proprietorship initially. Later, they get registered under the Companies Act (MCA).

I am working here as a Software Developer on VB.NET and SQL Server.

As Saswata Banerjee mentioned, proof of salary is the bigger problem in your case. You have used the word 'Firm'—not sure whether knowingly or unknowingly. But the word 'Firm' denotes that it is not registered with MCA—it doesn't need to be as it is either a Partnership Firm OR a Sole Proprietorship.

But that shouldn't come in the way of your career progress—as long as your background checks go through well, which is where your salary proof comes into the scene. What's the employee strength of your IT firm? Can you request your management to deposit your salary directly into your bank account—giving some logical/reasonable reasons for your request? Bank statements are accepted by most companies in lieu of salary slips.

Regards,
TS

Hello Laxmikant Joshi,

Like Saswata Banerjee mentioned, Proof of Salary is the bigger problem in your case. You have used the word 'Firm'—not sure whether knowingly or unknowingly. But the word 'Firm' denotes that it is not registered with MCA—it doesn't need to as it is either a Partnership Firm OR a Sole Proprietorship. But that shouldn't come in the way of your career progress—as long as your background checks go through well, which is where your Salary proof comes into the scene.

What's the employee strength of your IT Firm? Can you request your management to deposit your salary directly into your bank account—giving some logical/reasonable reasons for your request? Bank statements are accepted by most companies in lieu of Salary Slips.

Regards,
TS

It will be good for you to ask your employer/HR to issue you the Salary Slip for all this month you worked there. Or else, ask them to transfer your salary either through NEFT or by issuing you a cheque. I don't find any issue for not giving you at least the Salary Slip.

Hello Laxmikant Joshi,

Like Saswata Banerjee mentioned, proof of salary is a bigger problem in your case. You have used the word 'Firm'—not sure whether knowingly or unknowingly. But the word 'Firm' denotes that it is not registered with MCA—it doesn't need to as it is either a Partnership Firm or a Sole Proprietorship. But that shouldn't come in the way of your career progress—as long as your background checks go well, which is where your salary proof comes into the scene. What's the employee strength of your IT firm? Can you request your management to deposit your salary directly into your bank account—giving some logical/reasonable reasons for your request? Bank statements are accepted by most companies in lieu of salary slips.

Regards, TS

First of all, thanks for the valuable reply. I asked him to transfer my salary to my account, but he refused and said he will start that facility soon. Even after 8 months, he has not done that. I asked for a check, but he refused. The strength of our firm is 9 members, in which we provide banking software for cooperative banks.

Required Documents for Joining a New Company

You just need to get the below-mentioned letters from your employer to join a new company:

- Appointment Letter
- Confirmation Letter
- Increment Letter (if applicable)
- Resignation Acceptance Letter
- Relieving Letter
- Experience Letter
- Salary certificate (last financial year) or salary slip (last 3 months)
- Form - 16 (if applicable)

All these documents have to be on company letterhead. Only Form - 16 will be on plain print paper.

If you have all these documents, then no company will check whether your last "firm" is registered under "MCA" or not.

Seniors, please correct me if I missed any other important document or letter.

Hope this will clear all your doubts.

Regards

Dear Mr. Laxmikant,

Your query is whether 8 months of your work will be counted as experience. As the seniors have replied, it is not the length or period of work you have done, but rather the skills, learning, and experience gained that are counted. For example, a typist could have worked for more than 5 years, but that does not necessarily mean they have acquired the skills of accuracy or speed.

It is important to consider the quality of experience rather than just the duration of employment. Your consolidated salary of 7500 without any deductions, paid in cash, and the promise of an experience letter upon leaving the organization should still hold value when applying to reputed companies in the future.

If you have any further questions or need additional clarification, please feel free to ask for more guidance.

Hi sir, my name is Rajeshwari. I have one year of experience as a technical trainer in a partnership firm that is not registered. Currently, I am seeking a job change, and my resume has been selected by BHEL. I am unsure if my experience will be considered valid at BHEL since they do not provide separate salary slips but include experience letters and salary details in one document. Could you please provide me with some suggestions?

Hi,

Irrespective of the type of organization you work for, having an experience letter that clearly states your role can be beneficial when transitioning to a new organization.

In a small setup (partnership firm), salary slips are not available. To the best of my knowledge, it would not be a hindrance in your BHEL selection.