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How do I have multiple startups or businesses under a single Pvt. Ltd. company in India?

Submitted by LegalWizin on Tue, 10/06/2020 - 02:05

Multiple startup and business activity under a single Private Limited Company is not a good idea because with word Startup, I catch the need of investment.

Having multiple distinct activities in a single organisation will lead trouble to attract investors. Even the financial statements will not be able to represent the fair position from one activity.

With this logic, even registration of multiple activities is not allowed in single company. If the activities are related to each other and in same field - being ancillary or chain activities, that is accepted while registration. But the that is not case for unrelated activities.

For example, LegalWiz.in Private Limited is providing professional consultancy services, then it may not step up for completely unrelated software or website development services as its core activity.

However, the website development service is an ancillary object for it being web based online service provider.

If you need more details, here is a blog to answer the question: Is it allowed to run multiple businesses in one company? It touch upon the area of Object Clause of MoA and multiple related and unrelated services.

The primary need to include all services in one company is to associate the businesses with owners or management group. For that, magic words are Associate Company, Wholly Owned Subsidiaries or Group Companies with similar Group name.

These are again registered in form of a Private Limited Company but are associated with shareholding patterns. You may learn and choose the relevant organisation after consultation with professional.

Do you still have queries? Feel free to drop it in comment box below.

Also, for personalised assistance in to register a Private Limited Company, connect with an in-house expert at LegalWiz.in.