Is It Legal to Run a Side Business While Working in the Private Sector? Seeking Advice!

Hello experts,

I would like to know if it is legal to run a business (which might be consulting or a shop) while we are employed in a private sector. If not, can this still be run under the name of any other relatives?

No issues arise from running your own business alongside your job in the private sector.

You can do so provided you do not violate the terms of employment. It is advisable to start with a name other than your own to avoid further complications.

Please let me know if you have any questions or need further assistance.

Dear Venkatanathan,

I slightly differ with seniors here and advise you to avoid doing such business, as it would be taking up a profession for personal gain at the expense of the terms of the employment contract. It is never acceptable as per protocols, whether in a factory, office, or firm. The primary reason is the inability to focus on job activities.

Riding two boats can be very dangerous, particularly if there are applicable rules in this regard. There are cases in which extreme penalties, such as termination of service, are imposed when misconduct involving engaging in business, trade, or a profession is committed. This is because engaging in such activities reduces commitment and involvement, and influences actions in official matters. Therefore, it is better to discourage such fissiparous tendencies.

Many families run businesses, and their children may join companies for work. It is not necessary to close down your private business just because you are employed. Of course, the highest ethics are necessary - no poaching, no misuse of employer's time, etc. Also, it would be good to avoid doing similar business as the company. Otherwise, for a private sector employee, having a separate business on the side is not wrong or legally prohibited.