NOT Easy to Do Business
|20||16 Nov 2016 - 14:54||Anonymous (not verified)||22.214.171.124||Not Easy to Do Business||Development Sector||Bihar||Muzaffarpur||1/5||2/5||1/5||1/5||Other||NGO Registration (Social Enterprise)||Confusing laws that say different things||
I am from Muzzafarpur, Bihar. I recently started a new enterprise in the Development Sector. I tried to register a NGO (Social Enterprise). I would say that the services provided in terms of registering the NGO are not at all time bound. It could take any amount of time to get your NGO registered. More over, my experience was that there is no sense of accountability when it comes to the government procedures related to starting up a business or an enterprise.
My advice to other people who want to have their own start ups would be that, since it is very difficult to start a venture in Bihar or even invest in Bihar, you should get your organization registered in any other state but not Bihar.
|69||15 Dec 2016 - 15:24||Prashant||126.96.36.199||Easy to Do Business||Marketing||Delhi||Gurgaon||3/5||4/5||2/5||3/5||Register the business||
I decided to start my own marketing firm in Gurgaon, after I was quite dismayed with my previous job. However, I did not know anything about the procedure, so I consulted a CA about it.
He told me a fairly decent amount for the registration, and told me that I needn't worry about anything. It took me a week to get my registration done, and I did not have any issues with it, mainly because my CA completed all my formalities.
I had to only submit my Aadhar card and PAN card, nothing more. Since I didn't go to the office myself, I wouldn't know how many copies of each were required.
|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.
|47||28 Nov 2016 - 12:47||Prashant||184.108.40.206||Not Easy to Do Business||Media||Delhi||New Delhi||3/5||2/5||1/5||2/5||Register the business||Submitting the same document to different departments||
I did not know where do we start.
The whole process took me about fifteen days, just to register a sole proprietorship. Now, I know it may not sound like a lot, but it is a lot when one circles a government office for two weeks, every single day.
Every other day, they would ask me for a different document. Then, they would direct me to another desk, where the same procedure was followed. I was never asked for a bribe, but in retrospect, I wouldn't have minded if I paid a few hundreds here and there, if that meant my work would get done faster.
There isn't even a proper parking space outside the offices. Thank god for Uber! One of the worst things about making rounds of these offices was that you had to wait there until your number or name is called for. I remember staying hungry for the first day. From the next day, my mother sent a tiffin with me! A lot of other people brought some food as well, so it was pretty apparent that they were accustomed to such a system.
Lastly, I wish the system required less paper - not only for convenience, but also as a concern for the environment. It creates unnecessary hassles and wastage. How about starting an app, on which you can scan and directly send your documents? I think it would make everyone's work a lot more easier.
|32||16 Nov 2016 - 17:56||Anonymous (not verified)||220.127.116.11||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.
|30||16 Nov 2016 - 17:47||Anonymous (not verified)||18.104.22.168||Not Easy to Do Business||Restaurant||Maharashtra||Mumbai||2/5||1/5||1/5||1/5||
Register the business
Get registration and licenses under labour laws
|Can’t find information||
I had a lot of problems starting my restaurant in Mumbai. It was not easy for me to start my business. I tried to register the property, get permissions and licenses under the labour laws. My restaurant serves alcohol and even has hookah. So for me it was all the more difficult. I had to run from pillar to post to get my permits in place. I also had to pay bribe in order ‘to get things done’ at a faster pace. Apart from that once my restaurant started, I had to tip off the policemen in order to keep my business going. Or else for whatever stupid reason and probably an invalid one, my restaurant would have been shut down permanently. This is my experience in Mumbai and I am not aware of other cities in India. The customers, vendors and clients are also at times indifferent. They don’t feel any remorse in wasting someone’s time, energy and indulge in petty cheating at the cost of others. I am sure such instances take place abroad as well but the magnitude would definitely be significantly lesser.
|85||16 Dec 2016 - 17:13||Prashant||22.214.171.124||Easy to Do Business||Transport||Himachal Pradesh||Shimla||2/5||2/5||3/5||3/5||
Register the business
I have a transport company of my own, and has been successfully running for nearly two years now.
The setting-up took a bit of time, especially since the Himachal Pradesh police is a little prudent about your permits and such documents. But once I got it, it was a smooth sailing.
I would say having someone who has the knowledge of the field is necessary and important- it helps to have someone who has established their business in the field. In my case, I had an uncle in the same transport business, so that helped me out immensely.
|50||5 Dec 2016 - 18:26||Prashant||126.96.36.199||Not Easy to Do Business||Retail||Delhi||New Delhi||4/5||2/5||1/5||2/5||
Register the business
Get permits and licenses under environmental laws
Get building plan approved
Get electricity connection
Get water connection
|Confusing laws that say different things||
I have been running this shop in Jungpura for fifteen months now, after I moved to Delhi on the recommendation of my cousin. I had a big shop in Baroda, which I sold and came here, since the profit margins are better.
Buying the place itself was not much of an issue. My cousin had scouted the location beforehand, and found a nice accommodation for me. Back in Baroda, I had a bigger shop, but it was unregistered. So I wanted to get everything done properly this time.
I undertook various permissions, because I had a wide list of requirements for the store. The first day, I was made to run around a little, but found the people responsible for the various departments. The next day, I got my two sons to help me out- they had to miss a couple of days of work, but then, we were looking at the long-term profit here!
I am not aware of the rankings and numbers you mention [about Ease of Doing Business], but I can tell you the ground reality. Is it difficult to start a new store? Absolutely. There are a lot of documents that are required for the procedure, but thankfully Aadhar completes most requirements. The officials were really nice people, and understood my plight as a newcomer trying to establish business in this town. They always told me the precise number of documents to bring, and occasionally gave me a cup of tea.
By my experience, I know that the people themselves aren't bad, but the system itself is crippled. The officials are given a bad name for being very corrupt and inefficient, but I firmly believe that they are good people, who actually want to help you out set up your business. However, they face the same issues as you - they are bound by the same system as everyone else is.