Can a salaried person start a Private Limited Company?

Salaried Person Start a Pvt Ltd Company

In today’s time, Most of the youngsters wants to start their own business but instead of starting as entrepreneur, they first choose to gain some level of work experience by doing a job.

Moreover, many salaried employees realize that they can’t work under a boss so they decide to start their own company and when their company starts growing they step out of job.

This is why, the most frequently asked question by salaried persons is that Can a salaried person start a private limited company?

The answer is absolutely Yes.

A salaried person can start a private limited company or One-person company in India. However, the employment agreement of the salaried person must allow the person to start the company simultaneously. Generally, Employment contracts do not restrict to carry on a non-competing business.

The Companies Act, 2013 does not restrict the salaried employee to start a private limited. Moreover, the companies act has already simplified the eligibility to start a private limited as no minimum paid-up share capital is prescribed and any person can become a shareholder and/or director subject to prescribed disqualifications. The same person can become both the shareholder and director.

If a person wants to run the company solely then the person can incorporate a One Person Company instead of private limited.

If you are a salaried person and pondering to start a private limited company, then you must read the internal employment guidelines first. If it allows, then contact the Professionals Team for complete guidance on how to start a company and what shall be the requirements.

If you are looking for a Team of Chartered Accountants to seek assistance with Can a salaried employee start a private limited  and to guide you through the process then contact your Trustworthy Advisors Manthan Experts by dialing at +91-9643-969-969 or mail at

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