NOT Easy to Do Business
|42||23 Nov 2016 - 18:40||Prashant||184.108.40.206||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.
|43||23 Nov 2016 - 18:51||Prashant||220.127.116.11||Easy to Do Business||Entertainment||Delhi||Hauz Khas||3/5||3/5||3/5||3/5||Register the business||
It was quite easy for me to set up my business (LIMN Entertainment) which I would categorize under the entertainment sector. It was easy for me because I registered under my company as a sole proprietorship and also consulted my accountant who handled everything for me. I had to submit just three documents and the process went pretty quick. Infact the process to register my company took only a week or probably 10 days. The difficult part was finding a office space in South Delhi. I looked for 25 to 30 places and my current office where we are sitting was the last place I saw. Different people have different needs. I wanted a place with natural light and parking space and this was the only place I liked which had both of them. Registration of this office (property) was a bit difficult and was an elongated process. It needed a lot of unnecessary paper work. I had got the keys of this office before the paperwork and other formalities were completed. Also had it been a Pvt. Ltd or a Public Limited company, the process of registering the company would be very tedious and no procedure is very clear and straightforward. The process online is also not very easy to understand.
One other thing I would like to mention is that the procedure of registering any business or company and the documentation should be online and paperless. It would be much easier that way. But I have heard we are getting better with time unlike how it was in the past. Like taxation is steadily becoming online, I would like the procedure of registering the business or documentation process of registering your start up should be paperless and online.
It is not advice to others but rather it is a necessity to have all your paperwork in place. A lot of learning takes place only while you are ‘in the process’. I wasn’t aware of running a company or for that manner even manage a team before I started this company. But the journey has been very interesting and I have learnt a lot in the process. One advice would be – you need to be patient. Immense patience is needed if you want to be an entrepreneur. It takes time to set up your company and also for your company to grow unless your business is inherited. My mantara has been – “choose happiness over money!” I was in a very decent and good paying job. But my happiness lied in setting up LIMN and I am very happy about how it is steadily gaining momentum and growing.
|44||23 Nov 2016 - 19:41||Anonymous (not verified)||18.104.22.168||Not Easy to Do Business||Skill Development||Delhi||New Delhi||1/5||1/5||1/5||1/5||
Trade outside state/ country
|48||28 Nov 2016 - 15:07||Prashant||22.214.171.124||Easy to Do Business||Restaurant||Himachal Pradesh||Dharamshala||3/5||3/5||1/5||3/5||
Get construction permit
Get water connection
The process itself was pretty straightforward - I wasn't made to run around. Not much, anyway - except the odd extra copies of my electricity bill.
I did have a little issue with how the whole process is carried out. We could certainly do with a paperless process.
It's also quite amazing how incoherent the government functions. On one hand, our Prime Minister wants to take things online and go digital, and try to get everyone to use online transactions. On the other hand, these government offices have rather weak internet connections, and really outdated software- Windows 98! These offices also did not have an option to pay by card - how do we conduct business, then? Everyone seemed a little fed up with the whole ordeal, frankly.
Thankfully, the officials in McLeodganj were quite helpful, and didn't make me run around. They tried to get everything done by their own deadlines, and in two weeks, I had my own restaurant up and running. A big part went to the fact that these officials wanted to see business flourish in their small town. In fact, they had come for lunch just last week! It feels good to know that among all the experiences I've heard of (and read on the Ease of Doing Business website), there still are some wheels in the system who want the car to run.
|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.
|57||9 Dec 2016 - 17:05||Prashant||188.8.131.52||Not Easy to Do Business||Laundry||Maharashtra||Mumbai||3/5||2/5||1/5||2/5||
Register the business
Get permits and licenses under environmental laws
Get registration and licenses under labour laws
File returns under labour laws, environmental laws, tax laws, etc.
|64||14 Dec 2016 - 17:01||Anonymous (not verified)||184.108.40.206||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?
|69||15 Dec 2016 - 15:24||Prashant||220.127.116.11||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.