This site is under development, some of the functionalities may not work properly.
in Business Law Contracts Law
Asked September 10, 2017

Launching a start-up without leaving the exisitng job

  • 1 Answer

I am planning to a startup.i had already made website for my startup.Now its time company registration.i have got investment from some investor.They are(2 investor) saying that they will register the company in their own name along with my name.But my problem is that i am working in multinational company. I am not in position to leave my current company suddenly as i have to support my family. can you please guide me how can i register the company and whom name i should i register so that i along with my investor also got benefit. I am also planning to leave my current company when my startup do good business. whether i have to register my company in investor name and have an agreement regarding my share, And also at present will i hold any position startup company or i will do my work internally without knowing my current company? Please guide me what should i do?

Answer 1

Please examine your employment contract and the rules and regulation created by your current employer. If in any of these documents the company provides that the employee cannot be employed somewhere else then your current course of action can invite penalty and could possibly lead to termination of the employment. In such a case you should not register  the company in your name and nor should your name appear in any of the official documents of the new company. You can consider somebody in your family to be named as the owner of the company on the clear understanding that you will takeover whenever you leave the current occupation. Further, you must avoid to take any financial benefit from the company also as it will reflect in your income statement and could lead to challenges with your current employer. 

Agree Comment 0 Agrees over 3 years ago

Please Login or Register to Submit Answer

Directory ads
Need to talk to a lawyer?

Book a phone consultation with a top-rated lawyer on Lawfarm.