NOT Easy to Do Business
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# | Submitted | User | IP address | It was | Sector / Industry | State / UT(asc) | 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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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 | |||
84 | 16 Dec 2016 - 17:08 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Clothing | Maharashtra | Pune | 2/5 | 1/5 | 1/5 | 1/5 | Register the business | Can’t find information |
In short, it was a nightmare. I tried to start a clothing brand late last year, thinking that I would conduct a fair business in Pune. I wanted to register my company legally, and pay my taxes duly, irrespective of how my business went. But after going through this procedure, I realised why people don't take the white route! It takes a ton of time to get everything sorted, and more so to roll out. Getting clearances from these babus was one thing, and sustaining the business entirely another. It seems like they have all the time in the world to harass us, but not to help us. I am thoroughly disillusioned with the state of the business sector in this country. Though my business is fairly successful now, I can never forget the hell I have been through to make it till here. I can only hope it is the not the same for others. |
Make sure you're wearing running shoes to the government offices, and try and keep a CA handy. | Senior Department Officials | Kavya | 9649860773 | kavvya.t@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
86 | 19 Dec 2016 - 20:15 | Anonymous (not verified) | 120.88.39.18 | Not Easy to Do Business | Construction Chemicals | Maharashtra | Mumbai | 1/5 | 1/5 | 1/5 | 1/5 | Register the business | Other | Being a non-technical person. | I I did not know abc of construction chemicals. But I was 100% confident that it was badly needed in India. I worked with the relevant manufacturer and gained experience in its application and technical aspects. I started trading of these items and developed intimacy with the users. I surveyed their problems and needs, participated in technical seminars, borrowed money and got factory premises on rent. Only then could I start manufacturing, hire technical consultants. I implemented emotional intelligent marketing rather than intelligent marketing and maintained public relations with family members of the buyers. I never compromised on quality and kept on upgrading to international standards. I adhered to uniform pricing all over India and delivery schedules. I treated workers of my factory on par with family members, always gave credit of my success to them and never depreciated their human values. Not knowing anything about construction chemicals made it more difficult for me to start but also made me learn a lot through the journey. It was a tough time starting a business from the scratch. Registering my business was not an easy task. It took longer than expected to get started. Patience is what you need. If you have the capital you could hire someone to get your registration or any other formalities to be completed before you start. | Compromise makes a good umbrella, but a poor roof. Sky is not the limit, but it is just a beginning. Never think of short term gain. I studied lives of people who failed miserably but reached at the climax of their fame. Patience is what you need before and also after you start your business. Also maintain the integrity and do not forget your struggling period when you started your business. A degree, I term myself, " master of common sense " is constantly followed. | Keep it Anonymous | Anonymous | 9702230404 | servoshield@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 | |
96 | 18 Feb 2021 - 18:48 | Anonymous (not verified) | 193.27.23.81 | Easy to Do Business | Vumd Gj Zdb | Maharashtra | Spottrup | 5/5 | 2/5 | 3/5 | 2/5 | Get registration and licenses under labour laws |
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Keep it Anonymous | Tonia Hickson | Tyuoi ss | tonia.hickson@googlemail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |||
98 | 21 Mar 2021 - 06:36 | Anonymous (not verified) | 45.72.55.137 | Easy to Do Business | H rezj | Maharashtra | Roscoe | 2/5 | 3/5 | 3/5 | 1/5 | Get building plan approved |
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Both | Maya Kaczmarek | Yf Vmzmnzsmtf | maya.kaczmarek@googlemail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |||
95 | 12 Feb 2021 - 12:20 | Anonymous (not verified) | 45.72.55.108 | Not Easy to Do Business | Pwwbj | Lakshadweep | Tabost | 1/5 | 5/5 | 5/5 | 4/5 | Other | B qjqgg Pt | Can’t find information |
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Media | Curt Weaver | Pz Kagp | weaver.curt@googlemail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
104 | 6 Oct 2021 - 03:17 | Anonymous (not verified) | 23.95.51.30 | Not Easy to Do Business | Bxxypyt | Kerala | Hellendoorn | 4/5 | 3/5 | 4/5 | 2/5 | Get registration and licenses under labour laws | Confusing laws that say different things |
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Keep it Anonymous | Janette Rodd | Ipqea e Evdc | janette.rodd@yahoo.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
25 | 16 Nov 2016 - 17:18 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Social Sector,Non-profit | Karnataka | Bengaluru | 2/5 | 2/5 | 1/5 | 2/5 |
Register the business Trade outside state/ country |
They keep asking me to submit some new document every time |
I helped to register a non-governmental organisation in the social sector in Bengaluru, Karnataka. The number of documents required to do the work was boggling, and very troublesome. It was quite a task to get a VAT certificate for our social enterprise. It took close to a year, as the process was lengthy and the officials kept asking for newer documents at every visit. |
An advice to younger entrepreneurs would be that if you are not ready to bribe the officials, you should be ready to go through a lengthy process to get necessary certificates and documents. | Keep it Anonymous | Anonymous | 9916967853 | nitin.anjaneya@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 | ||
37 | 21 Nov 2016 - 17:53 | Prashant | 203.122.16.122 | 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! |
It's a difficult process. If you have the time, money, and energy, you might just be able to start your own business. Hence you need immense patience till things fall in place. | Keep it Anonymous | Anonymous | 88189456876 | shrawanbanerjee@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
46 | 24 Nov 2016 - 17:02 | Prashant | 203.122.16.122 | 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. |
Have contingency plans. Be prepared to run around offices, and be harassed by the ones who run them. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes |