Can You Use One Tally Software for Two Different Companies? – The Complete 2025 Guide

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Many businesses today operate multiple entities—such as a proprietorship + partnership, two branches, a trading unit + service unit, or multiple GST registrations. This often raises a common question:

“Can we use one Tally software for two different companies?”

The short answer is:
YES, you can use a single Tally Prime license for multiple companies — but there are important rules, limitations, and compliance points you must follow.

This detailed guide explains how one Tally license works for multiple companies, what is allowed, what is not allowed, and the best practices for using Tally Prime across two or more business units.

Can One Tally License Be Used for Two Different Companies?

YES — Tally Prime allows you to:
• Create unlimited companies
• Manage unlimited firm accounts
• Maintain separate books for each business
• Use distinct GST details for each company
• Work on all of them using a single Tally license

This applies to:
• Tally Prime Silver (Single-user)
• Tally Prime Gold (Multi-user)
• Tally Prime Edit Log
• Tally Prime Rental licenses

There is no extra cost for adding more companies inside Tally.

Conditions You Must Follow

1. One License = One Computer (for SILVER users)
Tally Prime Silver can run only on one system at a time.
You can maintain multiple companies on that system, but only one user can work at a time.

2. Multi-User Required for Multiple Users (GOLD)
If you want two users working on two companies at the same time:
You need Tally Prime Gold.

3. Different GST Numbers in One Tally? YES
Tally allows companies with different names, GSTINs, and financial years.

4. Data Must Be Stored in Separate Company Folders
Each company needs its own folder, backup, and security setup.

5. Tally License Should Belong to the Same Owner
Recommended usage:
• Same owner
• Same premises
• Same organization

How to Create Two Different Companies in Tally Prime

Step 1:
Open Tally → Create Company

Step 2:
Enter details for Company A (Name, Address, FY, GSTIN)
Save.

Step 3:
Create Company B with separate details.
Save.

Both companies will now appear in the list.

Switching Between Companies in Tally Prime

Tally allows:
• Opening multiple companies
• Switching instantly
• Viewing separate or combined reports

Shortcut: Alt + F3 → Select Company

Billing & GST When Using Multiple Companies

Each company has its own:
• GST setup
• SAC/HSN details
• Ledgers
• Invoice numbering
• Bank accounts
• E-invoice/e-way bill settings

Security Tips When Handling Multiple Companies

To avoid mixing data:
• Set a password for each company
• Use Security Control
• Allocate separate User Roles
• Maintain separate backups
• Enable Company Authentication (Edit Log)

Can Two Companies Share Ledgers?

No — Each company maintains independent accounting masters.

Can Two Different Branches Use One License Online?

YES, with:
• Tally on Cloud
• Tally Gold + VPN
• Remote Access features

When Should You Use Two Separate Tally Licenses?

Separate licenses are recommended when:
• Businesses belong to different owners
• Two teams must work simultaneously
• Two distinct locations need independence
• Compliance requires separate logs

Conclusion

Yes, you can use one Tally software for two or more companies. Tally Prime supports unlimited companies—each with its own GST, accounting setup, and security.

Single-user? Tally Silver is enough.
Multiple users or branches? Go for Tally Gold or Cloud.

Proper setup ensures compliance, smoother operations, and better security.

FAQs

1. Is there any extra charge for adding more companies?
No, unlimited companies allowed.

2. Can I use one Tally for two companies with different GST numbers?
Yes.

3. Can two users work at the same time?
Only with Tally Gold.

4. Can unrelated businesses share one Tally?
Not recommended.

5. Can I take separate backups?
Yes, highly recommended.

Binarysoft Technologies (Contact Information)

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Contact : +91 7428779101, 9205471661
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