NOT Easy to Do Business
|42||23 Nov 2016 - 18:40||Prashant||126.96.36.199||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.
|30||16 Nov 2016 - 17:47||Anonymous (not verified)||188.8.131.52||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.
|31||16 Nov 2016 - 17:52||Anonymous (not verified)||184.108.40.206||Not Easy to Do Business||Financial Advisory||Maharashtra||Pune||2/5||1/5||2/5||2/5||Other||Filing tenders||Can’t find information||
I was told it would take five years for me to get a permanent certificate for my financial services company and until then a temporary certificate would be issued. I bribed Rs. 6,000 and got the registration certificate in three days. My father already had one manufacturing business and intended to open a new business. Since he did not have the time to run around for completing the formalities, we had to hire an accountant and he charged us Rs. 40,000. Like most of the other entrepreneurs, even I had experienced what it really meant to go to bureaucrats and experienced red tape. I had to go various people for ‘n’ number of signatures and stamps. There were so many corrections I had to make in multiple documents to get my company registered. I don’t think there is anything called as – ‘single window clearance’.
My father had to set up a chemical plant and had to wait for a year to get environmental clearances. He also had to pay bribes along the way and despite wait for a year. How do we make in India if we are not allowed to make in India?
There is no clear knowledge about how to start a company. Most of the people are of the opinion that a lot of money is required to start a company. I started my company with Rs. 8,000 out of which Rs. 6,000 was a bribe. Even if people have some really fascinating ideas, they don’t start a company because they think that it will cost them a lot.
The tendering process of the government is flawed and corrupt. It is always given to people who are ‘known’ to the government officials. Once when we managed to get a contract on a fair basis because we really did quote low prices, we were called and blasted by an official. He asked us how we could take up the project when we had no clue about the place where the project was going to start. He finally introduced us to an agent who had taken care of all the previous people who had managed to get the contracts.
This is my experience of Pune, Maharashtra. I have no clue how does it work anywhere else in the country.
|46||24 Nov 2016 - 17:02||Prashant||220.127.116.11||Not Easy to Do Business||Labour||Karnataka||Mysore||2/5||3/5||2/5||2/5||Get registration and licenses under labour laws||Other||Labour issues||
For me the problem was dealing with the labour. The problem is that they deserve better, but I cannot pay them more than the market for the fear of being noncompetitive and losing business. But then they don't care much for the money they are paid. Timelines, work ethics, etc. mean nothing to them. But I don't blame them.
Right now it's Modi ji's kripa. My business is dead for next few months. No new projects are going to come in, as people are going to hold onto their money now especially if their net worth is less now maybe due to black money, or maybe due to crashed property. The future is uncertain. This policy is really anti-small trade business. People like Ambani selling the daily essentials to common men will not be affected, since demand will never drop.
Then, there is also the fear of being prosecuted for something you haven't done wrong. For example, not deducting the right TDS, or putting the wrong tax. Kejriwal had come out with a system of code for each item. Nobody implemented it! We do our work, but need to keep up with stupid compliances, which are subject to whims and fancies of illiterate politicians- most of whom haven't seen a business meeting in their lives, I am sure! It just takes up so much of your time. Harassment by officials is a valid and certain threat.
|49||30 Nov 2016 - 16:40||Prashant||18.104.22.168||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.
|52||8 Dec 2016 - 14:14||Prashant||22.214.171.124||Easy to Do Business||Education||Uttar Pradesh||Meerut||3/5||3/5||1/5||3/5||
Register the business
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.
|63||14 Dec 2016 - 16:11||Prashant||126.96.36.199||Easy to Do Business||Media||Delhi||Gurgaon||2/5||2/5||1/5||2/5||Register the business||
For me, the only real problem was to find the appropriate CA to do my work for me.
I never intended to do the running around, so finding a CA was the primary step for me. He tried to explain the procedure to me, but I told him not to bother - I just asked him which documents were required from my side, and how many copies of it would he require.
My whole procedure was finished within a week, and I had no issues because I hired a CA who could be trusted.
|65||14 Dec 2016 - 17:12||Prashant||188.8.131.52||Not Easy to Do Business||IT||Delhi||Gurgaon||4/5||3/5||1/5||3/5||Register the business||Can’t find information||
I set up an IT firm earlier this year. My company was a small one, and we worked out of our house in Gurgaon, so we just had to register the company.
The whole process for the category I was applying under was a digitised process, so I was pleasantly surprised. However, I did have to go to the office to submit my documents - I didn't understand why couldn't that procedure be digitised as well! One could easily scan and submit the required PDF files.
However, my main issue was the lack of availability of information. If someone has to start a business, a simple Google search should be helpful and enough. I couldn't find any information myself, so I had to call up another friend who had set up a similar business couple of years ago.
However, from what he told me, the process has become much simpler, so kudos to the government on cutting the red tape - I just wish they would have advertised it better!
|70||15 Dec 2016 - 16:11||Prashant||184.108.40.206||Not Easy to Do Business||Sports||Delhi||Gurgaon||3/5||2/5||1/5||2/5||
Get permits and licenses under environmental laws
|Other||Laziness on the part of officers||
I opened a sports shop in Gurgaon, which unfortunately did not work. However, my experience was mostly a pleasant one.
Unlike most people, I chose not to hire a CA, mostly because I couldn't afford to spend so much money on something that I thought could be done alone.
Unfortunately, I was made to run around a fair bit on my first day. It was quite taxing, and just when I thought there could be some progress, they broke for lunch.
Now, there is some sort of an unwritten rule at these government offices- lunch breaks shall last for about double the time they are supposed to last. The stipulated break was from 1 pm to 2 pm, but I couldn't spot anyone at the office till about 2:45 pm, and the counter only opened at 3 pm. So much for efficiency.
I ultimately got my work completed a week or so later, but not without lots of effort and running around from my side.
|73||16 Dec 2016 - 09:04||Prashant||220.127.116.11||Not Easy to Do Business||Restaurant||Uttar Pradesh||Lucknow||3/5||3/5||2/5||3/5||Register property||Corrupt officials who asked for bribes||
My whole issue was not while setting up the actual business, but while conducting it here. I run a restaurant, and officials often come and ask for bribes.
What would you do if a food inspector comes to your restaurant and demands a bribe for the inspection? If you don't comply he will file a report which claims he found 10 cockroaches at your facility, and shut you down until an investigation is completed.
You don't have a choice. If you don't pay a bribe, you can't do business in India. Government officers won't even let you register your company or get basic approvals to function!