Proprietor Joining Another Company as an Employee: Affidavit Format Ensuring No Legal Consequences for Both Parties

Good morning, As the proprietor of a small-scale company/agency, I am planning to join another company as an employee due to insufficient income from my current business. I have thoroughly explained my situation to the prospective employer, and they have understood my circumstances. They have asked me to submit an affidavit to the Managing Director and have planned to offer me a job in their company. The affidavit should embody legal terms that will ensure there will be no adverse effects on either side. Could you please help me with an appropriate format for such an affidavit?

As a proprietor transitioning to an employee role in another company, it's crucial to draft an affidavit that protects both parties legally. Here's a practical guide to creating an affidavit format that ensures no legal consequences for either party:

1. Introduction: Begin the affidavit by clearly stating your intent to join the new company as an employee while maintaining your current business as a separate entity.

2. Personal Details: Include your full name, address, contact information, and details of your current business.

3. Employment Details: Outline the terms of your employment with the new company, including your position, responsibilities, salary, benefits, and any other relevant details.

4. Conflict of Interest: Address any potential conflicts of interest that may arise from your dual roles as a business owner and an employee.

5. Non-Disclosure Agreement (NDA): Include a clause stating that you will not disclose any confidential information from your current business to the new company.

6. Non-Compete Clause: If applicable, include a non-compete clause specifying that you will not engage in any business activities that compete with your current business or the new employer during and after your employment.

7. Legal Disclaimer: Add a legal disclaimer stating that both parties agree to the terms outlined in the affidavit and that it serves as a binding agreement.

8. Signature: Sign the affidavit in the presence of a notary public to validate its authenticity and legal standing.

By following these steps and including the necessary clauses, you can create an affidavit format that safeguards both your interests and those of the new employer, ensuring a smooth transition into your new role.

Dear R Raja Sekaran,

I have prepared the draft of the affidavit. It is given below. Fill in the blanks wherever necessary. You can make suitable changes as you consider appropriate.

I wish you all the best!

Thanks,

Dinesh Divekar

Certificate on Conflict of Interest between Business Ownership and Employment

I, _____________ (complete name as per Aadhaar card), make the following statements under the oath of affirmation on the ____ day of ____ (month) 2025.

1. My permanent address is __________ (write complete address including PIN code)

2. I was born on _______, in ______ (place) in ______ (state), India. I am a citizen of India. My Aadhar Card Number is _________, and PAN Card Number is _______.
3. I always nurtured a dream of trying my hand at business. I formed a proprietary concern/private limited company/LLP under the title “__________.” The company is registered with the Registrar of Companies and the Company Registration Number (CRN) OR Corporate Identification Number (CIN) is ___________.

4. Despite my efforts, I could not grow the business entity. Considering the insufficient income, I decided to take up employment and started applying for suitable jobs.

5. M/s ___________ (complete name of the company that offered you the job) has selected me for the position of _________ (designation), and issued the offer letter to join them with effect from _____ (date). While accepting the job offer, I informed them that I do not wish to close my company. It means, while working as an employee, I will continue to remain the proprietor of my company.

6. While handling the dual roles as an employer and employee, I solemnly affirm that I will not undermine the interests of my future employer, i.e., __________ (name of the company that offered you the job). There will not be a conflict of interest between the two. As an employee, I will perform my duties to the satisfaction of the authorities concerned.

7. Further, I state that the above contents are true to the best of my knowledge, ability and information. This is my true name and signature, and further, I have not concealed any material facts.



Place: - Today at ______ (place) Signature

Date: -