NOT Easy to Do Business
|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.
|34||16 Nov 2016 - 18:01||Anonymous (not verified)||220.127.116.11||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!
|37||21 Nov 2016 - 17:53||Prashant||18.104.22.168||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!
|39||23 Nov 2016 - 18:05||Prashant||22.214.171.124||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
|45||24 Nov 2016 - 15:35||Prashant||126.96.36.199||Not Easy to Do Business||IT||Telangana||Hyderabad||2/5||1/5||1/5||1/5||Register the business||Confusing laws that say different things||
Bureaucrats are more often insensitive than not, and do not have the mentality of helping citizens. Rather, they have the mentality of making things as difficult as possible - they think their job is to make things more difficult for citizens. A lot of markets are controlled by guilds and associations of existing businessmen. They place a high cost of entry for new entrants, especially someone without connections in the business community.
I experienced extortionate behavior by local working class people, goons, thugs and small time politicians/crooks. Bribes on the preface of "donations" for 100 different religious festivals a year are taken. There is a total lack of rule of the law and lawlessness. It is a utter failure on the part of the police and judiciary since they do not have the capacity to dispose cases in a timely manner. One needs to be careful and look out for extortionate,fraudulent and deceiving behavior by lawyers and some Charted Accountants.
|46||24 Nov 2016 - 17:02||Prashant||188.8.131.52||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||184.108.40.206||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.
|53||8 Dec 2016 - 14:57||Anonymous (not verified)||220.127.116.11||Not Easy to Do Business||Hotel||Maharashtra||Thane||2/5||2/5||1/5||2/5||Register the business||Corrupt officials who asked for bribes||
My experience was not good at all in terms of starting my business. There are officials who will not ask for bribes directly but by the way the whole system runs and procedures are delayed for some or the other reason, you are left with no other option.
The documents to be submitted were so many. It is high time that we go paperless and make it easier not only for the officials but also for us. It will reduce the time period as well.