NOT Easy to Do Business
|62||14 Dec 2016 - 14:46||Prashant||184.108.40.206||Not Easy to Do Business||Media||Delhi||Gurgaon||3/5||1/5||1/5||2/5||
Register the business
Trade outside state/ country
|Delay by the department even though I completed the procedure||
I set up my media firm in Gurgaon earlier this year. In short, it wasn't easy to start a business.
I never intended to do everything myself- my dad had suggested that I hire a CA not only to handle my finances, but also finish up this procedure. But I wanted to see the situation for myself, so I decided to accompany him the first day.
To my surprise, even my CA had employed someone to do the work for him. I followed this one guy around, who seemed to have undergone this process a thousand times - he was so unfazed by the sea of people around him. I lost him on a couple of occasions, but in one line or the other, we would be reunited.
I asked him if he wanted me to stand in any line for him, but he refused, and told me he had a "setting" with the office people. After the first couple of lines, he used to just keep the documents on the clerk's desks, and way away, with no regard for the line of people behind him. Some shouted, some gave dirty looks. However, he was always unfazed.
I was surprised at his lack of care for others, and we got done by lunchtime. A week and a half later, I had my permits and registration licences, and my business was ready to go.
|64||14 Dec 2016 - 17:01||Anonymous (not verified)||220.127.116.11||Not Easy to Do Business||Non-Profit Organisation||Karnataka||Bangalore||2/5||2/5||1/5||2/5||Register the business||Corrupt officials who asked for bribes||When I went to register my organisation, I couldn't find any information like what are the documents required, whom to approach in the office, what are the fee details (if any), what are the services given in this office, etc. All I could see were "brokers/intermediaries" who approached the clients/people, whomsoever was coming to their office and advising, directing, and doing documentation work and getting money (including bribes to be paid to government officials starting from peon to registrar). He was having a rate card - who will take how much and for what work. The rate varies from service to service. The brokers are influential enough to speak directly to the so called top officer namely "Registrar" in that office. It is a common scene in all government offices such as Regional Transport Office, Tehsildar Office, Revenue Office, Collector Office and even in Court premises. It is very difficult for a common man to complete his/her work in government office without these intermediaries/ brokers or middleman. Brokers are acting as one window system to complete your work in government offices.||
a) Government should get rid of all brokers/intermediaries from government offices. They should not be allowed to run shops near these government offices.
b) Government should not allow intermediaries to roam freely in government offices. Why is the government allowing access to these middlemen/ brokers in government offices and access to government seal, computer, etc?
c) Government should display "citizen charter" with more details, which can be understood by a common man.
d) Like social audits, we should create "social anti-corruption squad'', where common people can enter into any office and search officials for any possession of money apart from his own. I understand it is not practically feasible, still, we need to create some kind of responsibility amongst government employees. Or any other way accountability can be assured.
e) Why doesn't the government not talk about performance of each and every employee of the office. Like in private sector, we should assess employees' performance with more transparent ways instead of present practice like 'performance report by higher official'. All the government officials are out to cheat the common people. So, the performance of the employees should be output based and outcome based. For, example, how many files are seen by a clerk on one day? or how many certificates are issued by VAO in a month?, etc.
f) What the employee unions are doing I don't understand. In the old days, the employee unions were formed to strengthen the unity of the employees against their bosses. But today, these employee unions (government) are threatening the bosses. It is a good thing that they are joining hands for their rights. At the same time, they should think about how they are giving service to its people (for which they are getting paid). Are the unions taking actions against its employees, who are corrupt, not working properly, torturing the people unnecessarily, etc? If they think in such a manner, only then they have right to ask for a pay hike, employees rights, etc.
g) I don't understand what the department vigilance commissions and anti-corruption bureau are doing. They only showcase the case when they catch the officers, after that, they are not showcasing the progress of the case to the public. How many people are really given punishments for their corrupt acts?
|65||14 Dec 2016 - 17:12||Prashant||18.104.22.168||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!
|66||14 Dec 2016 - 17:40||Anonymous (not verified)||22.214.171.124||Not Easy to Do Business||Media||Karnataka||Bangalore||2/5||4/5||2/5||3/5||Register the business||Corrupt officials who asked for bribes||Initially we tried to register our company ourselves. But the officials kept on delaying for reasons only known to them. Every time we went to the office to submit the documents asked to submit, we were asked for some different documents. Then we approached an agency and they were able to do the work easily. So we were not able to register by ourselves and had to approach a third party.||
For registering business, the process will be easier only when you approach some agencies or know some insider.
Many agencies have come up with packages as the process is cumbersome. For example: http://www.legalwiz.in/private-limited-company?gclid=CJ2w8fjS89ACFc4SaAodUy4PAg is a website which is quite helpful in this regard.
|70||15 Dec 2016 - 16:11||Prashant||126.96.36.199||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||188.8.131.52||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!
|74||16 Dec 2016 - 11:39||Prashant||184.108.40.206||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.
|75||16 Dec 2016 - 12:06||Prashant||220.127.116.11||Not Easy to Do Business||Steel||Delhi||Gurgaon||1/5||1/5||1/5||1/5||Register the business||Submitting the same document to different departments||
Government offices are a massive, massive pain to deal with. Even a bigger pain is dealing with the officials. Huge lines, obscure offices, forms that sometimes exist and sometimes don't, always angry and lethargic staff.
My co-founder and I spent an entire day collecting random forms, but in the end gave up and paid 5k to a clerk who got the job done within an hour.