Is Being an MD of a Non-Operational Company Considered Dual Employment While Employed Elsewhere?

While working, I registered a company but never commenced any business. I wanted to close it since the Law of India does not allow closure prior to one year of its incorporation. We waited for a year and proceeded with the closure. During this period, I was employed with a company, and I still am. Will this cause a problem? My gut says it should not be a problem because I have all the documents and affidavits for the closure of the company, as well as proof that the company never conducted any business in the form of a CA certificate.

There are no specific provisions under Indian labor laws barring dual employment, except for Section 60 of the Factories Act, 1948 (to my knowledge).

Consequences of Having Two Jobs at a Time:

The efficiency of the employee may reduce as they could become too tired from handling two jobs simultaneously. Man is not a machine.

The second job may interfere or clash with the first job. There may be issues of breach of confidentiality.

Various issues such as fatigue and poor attentiveness may arise.

In your case, since the company is defunct and non-functional, it should not create an issue. However, it would be advisable to see what exactly your appointment letter says. Many companies include that working for any other organizations is unauthorized during current employment.