NOT Easy to Do Business
|41||23 Nov 2016 - 18:31||Prashant||126.96.36.199||Easy to Do Business||Textiles||Delhi||Hauz Khas||4/5||3/5||3/5||3/5||Register the business||
I registered Safomasi in 2012, when I set it up with my wife, and started it a year later. Signing the business up was the easy part. As a textile business, I also needed a big, clean space. That was really difficult. In fact, this current office is only the second location I took a look at – I did not want to look further and risk losing this one. It suits our needs. Overall, the process seemed complicated though. I wasn’t really involved in the set-up of the business myself. I handed down all the work to my accountant, who did it himself. In terms of the experience, it wasn’t a hassle to me personally, but I found the amount of paperwork required by the government to be too much, taxing and frankly, unnecessary. Moreover, there was no information available about the procedure online, so I didn’t know what the next step was and hence my accountant handled all of that. Hence like everyone even I had to go through a third party despite me having all the paperwork and documents in place. So there is registration fees involved and on the top of it there is this lawyers’ or accountants’ fees involved. If one has all their documents in place, he/ she should be able to independently register the start up and not required to go through a third party. I did not know any of the costs involved as well. They were nowhere to be found – not on the websites, nowhere. When I visited the government office, all kind of unnecessary questions were posed at me rather than asking relevant information pertaining to my business or documents.
|39||23 Nov 2016 - 18:05||Prashant||188.8.131.52||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
Resolve the court dispute
Get through bankruptcy
|38||23 Nov 2016 - 17:52||Prashant||184.108.40.206||Not Easy to Do Business||Education||Maharashtra||Mumbai||4/5||3/5||3/5||3/5||
Register the business
Get electricity connection
|37||21 Nov 2016 - 17:53||Prashant||220.127.116.11||Not Easy to Do Business||IT||Karnataka||Bengaluru||2/5||1/5||1/5||1/5||Register the business||Can’t find information||
Everything is difficult if you are starting from scratch to set up a business.
• Finding office space: Not everyone has big enough a house or circumstances to incubate the organisation at home.
• Something as simple as commuting: It is hazardous to drive, and arduous to take public transport.
• Government policies/banking system: Something as simple a company formation - if you got for private limited model, the Registration Of the Company expenses require a fair amount. Cheaper option is to register company under partnership act (only if you have a friend who is a CA/CS/Lawyer and will help you out). Again, if your company is under partnership firm, banks won't give out unsecured loans/ credit cards to you/ your employees. This is the reason many good and hard working employees can leave the job with your company and go anywhere else where they get better facilities.
• No regard for Intellectual Property Rights or its implementation: Almost illiterate cops or Economic Offences Wing Officials dare not bothered about whether stealing/copying code/project plans/content is a big deal!
• There are multiple overlapping compliance checklists that will take you ages to get a grip on.
• Rampant corruption: To set up a meeting, to get anything registered, to not stand in the line for hours- every little thing requires a bribe to get your work done.
This can go on forever. There is no way that we can ever reach the competence levels of foreign countries. I’ve lost hope in our system!
|36||21 Nov 2016 - 12:10||Prashant||18.104.22.168||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.
|35||16 Nov 2016 - 18:03||Anonymous (not verified)||22.214.171.124||Not Easy to Do Business||E-Commerce||Maharashtra||Mumbai||3/5||3/5||1/5||3/5||
Register the business
Trade outside state/ country
|Submitting the same document to different departments||
The biggest problem is the lack of clarity in the process. I went to the company registrar's office and took a form, filled it and submitted it to the officer. He gave me 'n' number of reasons explaining why they cannot accept the form, and I was given a long list of documents needed for my form to be accepted. Now to get each of these documents, I had run around to different departments of the government. No one offered help at the government office, because they expected a bribe to solve my queries.
I collected all my documents from all the offices to submit these documents to the same officer only to know another set of reasons why my form won’t be accepted and another set of documents to be submitted. At this point, I was so frustrated that I asked the officer why he didn’t tell me about these reasons and documents earlier. And he simply smiled and said, I forgot.
There will be lot more things you experience when you visit a government office. The officer was busy with some government work, which he was not supposed to be given in the first place. So this is used as an excuse to not meet you but the real reason is that he somehow wants to extract bribe from you. The more frustrated you are, the more he earns. Government employees could find a million reasons to not deal with you or your issue, and there is nothing you can do about it.
According to the standard government procedure one can complain to his higher officers but the higher officers are equal partners in taking bribe. All have defined what charges will be taken as a bribe when you want something from them.
How do I know about this? I am a son of a government officer (not company's registrar, but another government department) and despite that I tried to register my company honestly. I know both the sides of the coin. My dad tried to fight this as an honest officer when he was young. He has to visit courts till this date because some senior officers framed him in the wrong case. The last case has been running for last 2 years. My dad tried to contact everyone he can above his officers but all told him to shut up and be part of the system or else he will be in jail for sure.
If you ask me for a solution, then it's done already in passport offices. TCS is running that department amazingly. The process is exactly described on their website. No local laws affect that procedure. And your turn is decided once you register online. You will surely be able to finish with the procedure in 1 or 2 hours. You know exactly what is needed before going to that department.
|Don't plan on doing business in India. Move abroad!||
Senior Department Officials
Keep it Anonymous
|34||16 Nov 2016 - 18:01||Anonymous (not verified)||126.96.36.199||Not Easy to Do Business||Marketing||Maharashtra||Pune||2/5||4/5||4/5||3/5||Register the business||Can’t find information||
I tried to register a marketing firm in Pune, in order to kick-start my career. The process itself took hardly two weeks from when I applied, but it involved a lot of running around for my family.
Since I am a resident of Delhi, most of my documents were back at home. Thus, my family had to post them. Fortunately, they arrived on time. But I had to submit two identification proofs, so I had to get a driving licence made within a month solely for the purpose of identification, since I did not possess an Aadhar or a voting card – I just had a my passport.
One of the main issues I had was the lack of information that was available- which office do I go to. Can I register a name in Pune and use it later in Delhi? Which desk was I supposed to go to? What are the working hours? None of the information was available online, so my father suggested that I hire a CA to register it for me. After hiring the CA, the process was very smooth.
I don’t understand why I had to hire the CA, though. This is the problem with our country- the requirement of middlemen to conduct business. I think this is the worst problem that hampers the conduct of business in our country- it should definitely be made easier for citizens to start a business if we wished to!
|33||16 Nov 2016 - 17:59||Anonymous (not verified)||188.8.131.52||Not Easy to Do Business||Financial||Delhi||Delhi||3/5||4/5||2/5||3/5||Register the business||Other||Registration of name||
I did not find it easy to set up my financial enterprise in Delhi. It took us a couple of months only to get the name of my company registered. Every time I submitted a name, it used to get rejected without any known reasons. It was very time-consuming, taxing and unnecessary. Only this step set me back by three months at least. Getting the trademark registered was a problem because I had to go through a lawyer. I fail to understand why couldn’t I find all the information myself and do it independently without involving extra costs. An entrepreneur abroad can do these things independently without taking anyone’s help. I could have saved a lot of money if I knew the procedures.
Consult some expert who will help you out legally and also in financial matters. I think that’s the only way out because I couldn’t do everything on my own.
|32||16 Nov 2016 - 17:56||Anonymous (not verified)||184.108.40.206||Not Easy to Do Business||Software||Delhi||Delhi||3/5||2/5||2/5||3/5||
Register the business
File returns under labour laws, environmental laws, tax laws, etc.
|Acquiring another business||Submitting the same document to different departments||
I had a difficult time starting my software business in Delhi. I didn’t have to pay a bribe to register a Pvt. Ltd Company but had to pay a bribe to complete the registration of a proprietorship.
There is no clarity on taxation. For example, when you pay someone for their services you have to deduct 10% TDS. I had no idea of any sorts if that person is Amazon or a MNC who have their offices in India and if I had availed their services did I need to deduct 10% TDS. Amazon demanded a full payment. I contacted a dozen charted accountants and even a friend of mine who is in the Indian Revenue Service. None of them had a clue. But all of them suggested paying TDS to be on a safer side. So I had to pay the full amount to Amazon and on the top of that 10% to the dear Government of India. There are so many scenarios where there is no clarity at all.
Investment laws are a total mess. God help you if you ever receive a FDI. I received it once only to the return the amount of Rs. 5 lakhs. This is because the amount of running about I would have to do was not worth the amount.
The legal system is terrible. If I may say, it is effectively a joke. An acquisition of one my products fell through because the acquirer did not want to make disputes subject to the Indian jurisdiction in the contract. In the acquirer’s own words – “the Indian legal system isn’t held in very high regard here” (in Australia).
There are high costs involved in doing business especially in India. My gateway charges a 5% premium (so a 3% + a 5%) for the Indian Businesses because of the increased cost of operations. So an American Company charges only 3% whereas I have no option but to settle at 8%. There are innumerable other hassles as well. It is like a death by giving thousand cuts.
Even in the software industry, regulations are very high. Be patient and prepared to wait for a while to get through.