Hello. A PSU Bank employee wants to start a business. He is a new joinee (probation period not yet over). He is not sure if the employment contract permits him to start a new business alongside his job. And he is afraid to ask or inform the organisation as well. And if he starts the business by quitting his job and this does not work out, he won't be able to feed his family. So its trouble both ways. Kindly advice.
So he has come up with some ideas. Kindly suggest if any is feasible. If none is feasible, kindly suggest a plan of action.
Idea 1:
He registers an OPC (Say Company 1) in the name of a family member. And runs the business unofficially. If the business takes off, he resigns, and registers an LLP. This LLP (Say Company 2) will have 2 partners - this banker and his aforesaid family member. Now the whole business (shares and assets - tangible and intangible) previously set up in the name of Company 1 gets transfered to Company 2. Is that possible?
Idea 2:
He registers a section 8 company (the business is a semi-social work with some charity involved) where he would be actively involved. Once the company starts running in profit (since initially all companies run at a loss he can easily say he is doing social/charitable work), he converts it to an LLP or OPC. Is that possible?
Idea 3:
He registers an OPC (Say Company 3) in the name of a family member. And runs the business unofficially in their name. If the business takes off, he resigns, and converts this OPC to Private Limited Company after 2 years (Private Limited Company requires 2 directors, right? One could be the banker and another could be his family member in whose name he started Company 3). Is that possible?
Idea 4:
From what I had been reading LLP mentions nothing specific about director. It however mentions partners. So an LLP is set up by 2 partner - this banker and his family member. And the banker remains a silent partner (will neither hold any equity nor do any work officially), do the employer need to be informed? Is that possible?
Idea 5:
He registers an OPC (Say Company 4) in the name of a family member. And runs the business unofficially. If the business takes off, he resigns, and registers an LLP. This LLP (Say Company 5) will have 2 partners - this banker and Company 4. Now the whole business (shares and assets - tangible and intangible) previously set up in the name of Company 4 gets transferred to Company 5. Is that possible? [this is based on the fact that we regularly see business takeovers in news e.g. whattsapp and instagram taken over by facebook.]
Feel free to give any advice. Kindly excuse lack of knowledge of legal terms.
