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  • Category: Engineering Jobs

    Can I join this kind of a company?


    Have a query about joining a company? Looking out for suggestions? On this Ask Expert page check out the answers.

    I have recently got an offer of employment with a company but I am unsure to join it. The company doesn't have any end lines like Pvt Ltd, Ltd and Inc. etc. I also have searched for the name on mca.gov.in/mcafoportal/checkCompanyName.do but can't find it. Also they need to sign a bond. It is an unregistered company.
    Can I join such a company and sign the bond?
    Is such an experience valid?

    Update: It has only one director and is an SME. They say that it has registered. If it is registered why it doesn't show up in MCA website ?
  • #140002
    Usually unregistered company have issues to be shown on your resume. So make sure it is either Pvt ltd, proprietor, or LLP. If it has none of these 3 then you have to choose it based on risk and reward basis. Are you going to get paid? if the company is allowing you experience certificate etc. Most of the proprietorship based companies are not usually registered. And they just have the current account in the name of person. So if that's the case, then you can take the risk. But be sure to take the joining and leave certificate and follow the process. As that helps in the job market as they do background check.

  • #140036
    Companies are registered under indian companies act, 1956,You want to go with registered company.But make sure there are no illegal practices or unethical business. There may be problem you will face with your resume by unregistered company. Experience may not be count.

  • #140074
    You can join unregistered company, but before joining know the nature of job in your company. If it is in the field of finance, I would not suggest you to join. Unregistered financial company practice most corrupt practices in society. While signing the bond go through line by line and clear your doubts if you have. If you get the experience certificate from this company while leaving the job, it will help you in your next job. Don't forgot to take relieving certificate and experience certificate while leaving a job.

  • #140086
    As per my suggestion you should not join this company.

  • #141000
    If a company is unregistered then it becomes risky for the person joining it as well as the individuals future is also uncertain. Apparently the company may look alright and may seem to be doing business as usual but any time due to the internal reasons best known to their owners it may wind up and close its operations.
    The most serious condition is when it is intentionally or functionally unable to pay back to its creditors.
    Companies are registered under the Companies Act, 1956. There is a section ( section 582) of the said act which describes a unregistered Company as - an unregistered company, is a company which is not registered or covered under provisions of companies Act. 1956 ( 582).
    Under such circumstances it is not advisable to join these unregistered companies.

    Knowledge is power.


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