NOT Easy to Do Business
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| # | Submitted | User(asc) | IP address | It was | Sector / Industry | State / UT | City | Response-time of officials | Number of documents to be submitted | Availability of information about the process | Overall Rating | It was an attempt to | Other | The problem was | Other cause | Details of experience | Advice for others | Share my story with | Name | Contact no | Privacy Policy | Contact me | Display it | |
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| 2 | 12 Apr 2016 - 17:57 | Shashi | 203.122.16.122 | Not Easy to Do Business | Banking | Delhi | N Delhi | 3/5 | 1/5 | 2/5 | 2/5 | Other | Open Bank account | Can’t find information | I wanted to open a bank account for my proprietorship firm. Banks kept me asking for the PAN card for the firm and Service tax / sales tax registration certificate. However, for a proprietorship firm, PAN card of proprietor works for firm as well. Also, being a new firm, and not foreseeing the turnover crossing 2 lakh for the first year, it wasn't necessary to go for service / sales tax registration. | Don't start a proprietorship firm if you are looking at a very small turnover. | Both | Vikram Saluja | 9999999999 | vikram.saluja@vsaluja.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 42 | 23 Nov 2016 - 18:40 | Prashant | 203.122.16.122 | Not Easy to Do Business | Management Consultancy | Delhi | Hauz Khas | 4/5 | 3/5 | 1/5 | 2/5 | Register the business | Can’t find information |
Coming from the UK, the whole procedure went a little quicker than I expected. We hired a lawyer who handled all of the legal work. As per the experience, the lack of information regarding how to set up a business here is terrible. In the UK, every piece of information is on the government’s website, which makes the whole procedure very simple, whereas in India, it is so difficult to understand on your own! I would count this alone as a barrier to entry. Every step had to be explained to me by the lawyer or the accountant. And I had no option but to trust my lawyer. There are many grey areas regarding taxes and you don’t know surely what you need to do. Some of our clients are international and we receive certain fees for our expertise in dollars. Hence my accountant advised me to pay certain taxes since but he said it wasn’t a rule and I wasn’t sure whether I needed to pay that tax or not. The procedure could be set up online and that way it could be much easier and less complicated for people like me to go through the procedure. |
To newer entrepreneurs, I would advise you to pick out good lawyers and accountants, and trust them. They know this system best, and work very well with it. In India, such services are quite reasonable in terms of costs – back home; the legal fees alone are too high! Lastly, I’d advise them to get all their paperwork in order before they start, which would make the registration and paperwork a lot faster. |
Both | Laura Quinn | 98107 76929 | laura.quinn@doonething.in | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 74 | 16 Dec 2016 - 11:39 | Prashant | 49.204.110.82 | Not Easy to Do Business | IT | Maharashtra | Mumbai | 1/5 | 1/5 | 1/5 | 1/5 | Register the business | Corrupt officials who asked for bribes |
1) Bribe to complete registration of proprietorship. Didn't have to give bribe for registration of private limited company thankfully. 2) No clarity on taxes. For example, when you pay someone for a service, you have to cut 10% TDS. Now, if that person is Amazon and they are a MNC with offices in India and you pay them for their servers - do you deduct TDS? Amazon wants full payment. I talked to a dozen CAs and even a friend of mine in Indian Revenue Service, all of them had no clue. But they suggested me to pay the TDS just to be safe. So I had to pay Amazon the full amount and then 10% on top of that to Dear Govt of India. 100s of scenarios like this with no clarity. 3) Investment laws are a mess. Angel investments go straight into books of account as income and are taxed. God help you if you ever receive a FDI, I finally returned the money to the investor (it was 5 lakhs), as the amount of running around I had to do was not worth it for that small amount. 4) Terrible legal system- it's effectively a joke. An acquisition for one of my products fell through because the acquirer didn't want to make disputes subject to Indian jurisdiction in the contract because, in his own words, "the Indian legal system isn't held in very high regard here (Australia)" 5) High cost of doing businesses. My gateway charges a 5% premium (so 3%+5%) for Indian businesses, because of the increased costs of operation. So, while an American company can charge only 3%, I have to settle for 8%. So many other small little things - it's like death by a thousand cuts. |
It's a tough road, starting and conducting business in India. Be prepared for a lot of hardships. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 39 | 23 Nov 2016 - 18:05 | Prashant | 203.122.16.122 | Not Easy to Do Business | Hotel | Maharashtra | Murud Janjira | 2/5 | 1/5 | 2/5 | 2/5 |
Register the business Get construction permit Get registration and licenses under labour laws Get electricity connection Get water connection Pay taxes Resolve the court dispute Get through bankruptcy |
Other | Getting a license to serve alcohol was a problem | It was a tough time getting licquor licensed to put up a bar in the restaurant. It was a fight we fought for so many years | Follow your instinct and do a strong market study. Don't do what everyone is doing. In our time we were the pioneers in the business in our vicinity. However today, we are facing a lot of competition | Both | Kumudini Tavsalkar | 9769564269 | tanvi.tavsalkar@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 55 | 9 Dec 2016 - 14:42 | Prashant | 203.122.16.122 | Not Easy to Do Business | Agriculture | Maharashtra | Sangli | 1/5 | 3/5 | 1/5 | 2/5 |
Register the business Acquire land Transfer property Get building plan approved Get electricity connection |
Other | Middleman, Corrupt Officials, Lack of information | Without a middle man no one can purchase land. From agents suggesting you to buy land to getting loans approved - everything requires a middle man. To collect each document on time you have to bribe the officials. It is their duty to issue the documents but you have to be flexible and bribe or else the procedure gets stuck. There is no one in these government offices to give you any sort of guidance. Even the information on court fee, stamps required etc. is not available. | Information about all the procedures should be available online and should also be displayed on boards in the government offices. The government officials are rude, sometimes confused themselves and not very approachable. You have to bear the brunt. Government officials should be polite, have the required knowledge about the processes and should be helpful. Carry all the possible documents and hire someone who is well aware of the government procedures. | Keep it Anonymous | Anonymous | 9222292281 | arvind.vetam@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 71 | 15 Dec 2016 - 17:21 | Prashant | 49.204.110.82 | Easy to Do Business | Software/IT | Delhi | Gurgaon | 3/5 | 3/5 | 1/5 | 2/5 | Register the business | Registering an online company under sole proprietorship is the easiest way to run a business in this country. I did mine that way, and it took less than three days for it to come through. My business was up and running three days after that. | I honestly think others make a big deal out of starting a business in India. All one has to do is talk to someone who has done this before- they'll guide you. | Both | Mayank Gupta | 99876547864 | mayankgupta52@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 36 | 21 Nov 2016 - 12:10 | Prashant | 203.122.16.122 | Not Easy to Do Business | Passport | Maharashtra | Palghar | 3/5 | 2/5 | 3/5 | 3/5 | Other | Obtaining a passport | They keep asking me to submit some new document every time |
Doing business in India is like travelling on a road with multiple roadblocks. Every hurdle has to be crossed in order to reach your destination. Unnecessary & excessive laws hamper business growth. Time consuming approvals required at every step.(1) As an example, Indian passport applicants in Palghar district of Western Maharashtra are asked to bring one witness(2) who is not a relative and should reside in the same building as the person who wants a passport. Does such a rule even exist? No such law is clearly mentioned on Passport Seva website(3). So, an applicant has to visit the Passport Seva Kendra (PSK) with original documents, then again to Police Station with same original documents and also the witness from same building. Why can't both be integrated? Also, laws need to clear cut for valuable documents like a passport. Any genuine entrepreneurs, small businesses or solo travellers in Palghar district may not be able to expand their journeys, if they can't bring witness from same building. In my opinion, this is just ridiculous! One shouldn't have to go through such pains to obtain a passport. And even if the procedure is a little lengthy, they should at least mention it clearly on the website. (1): http://economictimes.indiatimes.com/news/company/corporate-trends/licence-raj-replaced-by-time-consuming-approval-raj-biocon-cmd-kiran-mazumdar-shaw/articleshow/53490079.cms?from=mdr (2): https://pbs.twimg.com/media/CpQ2_2dUMAE70RB.jpg (3): http://passportindia.gov.in/AppOnlineProject/online/faqPoliceVerification |
Patience is required. The Indian bureaucracy will frustrate you! | Senior Department Officials | Turbasu Chatterjee | 9987654687 | tarbasuchatter@hotmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||
| 52 | 8 Dec 2016 - 14:14 | Prashant | 203.122.16.122 | Easy to Do Business | Education | Uttar Pradesh | Meerut | 3/5 | 3/5 | 1/5 | 3/5 |
Register the business Acquire land Register property |
The overall process of getting the registration and acquiring land for setting up a small unit that manufactures stationary was quite simple. I did not have to pay any bribe, though the waiting time was a little more than required. The office in Meerut was filled with people filing registration requests for the textile industry. Since I filed under a different department, my process was a little more smooth and streamlined. It took me a week to get my registration completed, and a another week and a half to get the land clearances completed. The location already had electricity and water connection, so we didn't apply for new connections. The officials, however, behaved as if they were doing us a big favour. They were just doing their job, but still had a bit of an ego about it. I did not appreciate that. |
Make sure what sector you're applying in, it makes things much easier. Also, carry all necessary documents. Having a CA helps. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 68 | 15 Dec 2016 - 13:19 | Prashant | 203.122.16.122 | Not Easy to Do Business | Farming | Maharashtra | Mumbai | 2/5 | 1/5 | 2/5 | 2/5 | Register the business | Other | Documentation was a headache | My experience was not good. I have a farming related activity in Mumbai. Even in a city like Mumbai - city of dreams where people have so many aspirations, doing business is not that easy. Documentation was a big headache. Every time I had to submit some new documents. I had to bribe under the table to get my business registered. | I don't know what advice to give to others. I am new to the business. The only advice is get all your documents in place. | Keep it Anonymous | Anonymous | 9145510501 | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 49 | 30 Nov 2016 - 16:40 | Prashant | 203.122.16.122 | Not Easy to Do Business | Fishing | Andhra Pradesh | Vishakhapatnam | 2/5 | 1/5 | 1/5 | 1/5 | Register the business | Confusing laws that say different things |
There is a lot of competition in Vizag in the Fishing sector, since the coast is quite favourable for catching fish. Most of the locals just catch the fish for their own subsistence, while a share of them sell it. I decided to register my own company and sell the fish to Tyson, who would package it responsibly, and sell it across the country. I actually started my business before registering the company, and by the time I had enough of a hold in the local market, I applied to Tyson to be a supplier. However, they required me to be registered as an established supplier from Vizag, and to facilitate the same, I had to register my business. When I reached the office, I did not realise I lacked the necessary documents required for registration, so I had to come back two days later. At the office, they thankfully had a token system, and my number was called after three hours. At the counter, the person seemed quite surprised to see that I had applied for a fishing licence. To my surprise, he suggested me to skip this process and continue with my business! I had to tell him that I needed the licence to supply to an MNC, to which he understood. He aided me in the whole process, but it did take a lot of time - various departments required their own set of documents and clearances. In about two weeks, my business was registered, and Tyson bought my product a month later. |
There will be a lot of running around - even if the process is less rocky. I know of people who had to spend weeks running around the offices. Carry extra copies, the department office doesn't have a copier. And lastly, treat the officials well - they are more likely to get your work done if you treat them like humans! | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes |