NOT Easy to Do Business
|74||16 Dec 2016 - 11:39||Prashant||126.96.36.199||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||188.8.131.52||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.
|76||16 Dec 2016 - 12:25||Prashant||184.108.40.206||Not Easy to Do Business||Investment||Delhi||New Delhi||1/5||1/5||1/5||1/5||Other||Investment was troublesome||Confusing laws that say different things||
As an NRI, I invested 5 lakhs in 2005 in an infrastructure fund in 2005. Due to US compliance, it was very cumbersome to keep it functional. I was in India for the last two months and was not able to liquidate it due to one excuse or the other- first it was getting documents from all corners, and then demonetisation.
Excuse 1. Signature does not match.
Excuse 2. Your application does not mention what type of bank account you have. (A cancelled copy of the cheque was attached, and it clearly stated it is a savings account)
Excuse 3. ID not attached. (Copy of PAN number was filed with the application)
So my money is stuck for another year at least.
|77||16 Dec 2016 - 13:51||Prashant||220.127.116.11||Not Easy to Do Business||Manufacturing SME||Delhi||Noida||2/5||1/5||1/5||2/5||
Register the business
|Confusing laws that say different things||
There are various problems if one wants to start their own business in India.
Firstly, the confusion of requirements to start business. Unless you contact a broker or a CA, you cannot get required certificates done.
Secondly, taxation. There are whole lot of tax procedures which are too complicated. VAT, CST, Income tax, TDS- the list is endless. There are too many loopholes and too many things to take care of.
Every month, the tax clerk comes to our office and takes 300 rupees just to ensure we are compliant and in no trouble, and gives his signature on our monthly VAT returns. If we dont pay him, it would atleast take 2 days of our time to get things done properly.
|78||16 Dec 2016 - 13:58||Anonymous (not verified)||18.104.22.168||Not Easy to Do Business||Online sales||Delhi||New Delhi||1/5||1/5||1/5||1/5||Trade outside state/ country||Confusing laws that say different things||
Amazon operates in 13 countries worldwide.
However, only amazon.in requires the seller to have a company registration certificate and a VAT certificate to even register as a seller.
Make In India, my foot! Decided to sell on amazon.com.
I'm very idealistic too. After reading all the replies on our website, I'm depressed and shattered. I don't think I can ever get myself to bribe someone. Don't have any connections too(even if I did, I don't think I would be very comfortable using them!). Feeling helpless at the moment- it shouldn't be this difficult to start a business, should it?
|79||16 Dec 2016 - 14:12||Prashant||22.214.171.124||Not Easy to Do Business||Education||Delhi||Noida||2/5||1/5||1/5||1/5||Register the business||Other||Customers||
People are unwilling to pay. Period. You can deal with all the bureaucracy, but what can you do if people just don't want to pay? Ad based model is not feasible for every product.
Till now, I have mostly focused on the Indian market. I still think there is a huge opportunity. For example, consider admission process in educational institutes, their examination processes etc. Most of them are still manual and quite cumbersome. But like I said, to convince them to pay is quite a challenge.
|80||16 Dec 2016 - 14:53||Prashant||126.96.36.199||Easy to Do Business||Marketing||Andhra Pradesh||Hyderabad||3/5||3/5||1/5||3/5||Register the business||
I own a digital marketing agency and run a small cafe in Hyderabad. We offer premium web services, branding, content creation (including promo videos, blogs, etc) and PPC management for e-commerce clients and product companies who want a premium look and feel. This is my primary business.
Starting the business wasn't an issue at all. Andhra Pradesh is very conducive when it comes to start-ups, so I didn't have too much of an issue, though I did hire a CA to look after the process. Overall, didn't really have any problems.
|81||16 Dec 2016 - 16:10||Prashant||188.8.131.52||Not Easy to Do Business||E-Commerce||Haryana||Panchkula||2/5||3/5||1/5||2/5||
Register the business
Trade outside state/ country
|Other||Sustaining the business||
The one we're starting now is an e-commerce business for a niche consumer good. We want to share things about everything about the business; starting from how we decided on the product and the business model, about marketing and gaining initial traction. We're trying to figure out social media, even though we both are kind of shy on the social networks.
We might have a lot of resources on startups from the US and other countries. But a fact of the matter is that starting something in India (as we've learned) is a different beast. We need to start discussing things in the open so that we can learn from each other.
|82||16 Dec 2016 - 16:26||Prashant||184.108.40.206||Not Easy to Do Business||IT||Delhi||New Delhi||3/5||2/5||1/5||2/5||
Register the business
Trade outside state/ country
|Can’t find information||
I started an IT firm, but it fizzled out within two months. I shortly left the country, and am currently working in San Francisco. Here are the reasons why it didn't work out, and probably never will:
1) Over-demanding yet non-competent talent pool. Bad work ethics. So many graduates, but none employable. In contrast, in Phillipines, you have technically qualified people with no degrees who have tons of freelance work to show as their experience.
2) One employee stole our circuit designs and disappears. Another faked his qualifications. Another got run over while transporting one of our items, we gave compensation to his family but couldn't find the culprit. Installed cameras in trucks where between each state- the police ended up demanding something from truckers!
3) Accounting is really confusing and messy. Border between legal and illegal is very very thin. One of my over enthusiastic employee bribed the customs official and later asked for compensation from the company - imagine what kind of accounting magics you can employ to cover it up among extremely ambiguous and contradictory laws ? Most accountants are part time money launderers. If you are an honest soul, this country isn't for you- sorry, no other way to put it!
4) We imported materials. Customs took items worth double digit lakhs as hostage for stupid reasons. Not much problems in Phillipines or Indonesia. Don't even want to begin talking about the pain we had to go through to export stuff!
5) Clients (read: Scammers) who don't pay, drying up our cash flow. Our clients were renowned businesses in India.
6) Suppliers who take money upfront and don't deliver (read: scammers 2.0). Also renowned businesses in India.
7) Government tenders - bribes, very short notice, unrealistic conditions, money hold up. They expect us to maintain their servers when they don't even have electricity, and blame us for the results of this power outage despite giving recommendations to buy a backup generator. When will babus know the difference between IT and power companies ?
9) Insurance guys who had weird clauses only found in this country. Never trust them - this includes government insurance companies who expect something for validating claims
10) Regulations, Licenses, Permits, Certificates (read: babudom and bribery). Documentation and paperwork is cumbersome and demotivating.
11) Venture Capitalists don't have much funds (compared to Singapore or Canada), inexperienced and hate anything about hardware or technology based businesses (probably they are aware of how risky it was to start in India) - will only prefer e-commerce intermediaries and IIT mafias. The amounts they are willing to invest was less than what I saved working for 3 months in the West.