NOT Easy to Do Business
|39||23 Nov 2016 - 18:05||Prashant||126.96.36.199||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
|44||23 Nov 2016 - 19:41||Anonymous (not verified)||188.8.131.52||Not Easy to Do Business||Skill Development||Delhi||New Delhi||1/5||1/5||1/5||1/5||
Trade outside state/ country
|45||24 Nov 2016 - 15:35||Prashant||184.108.40.206||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.
|49||30 Nov 2016 - 16:40||Prashant||220.127.116.11||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.
|62||14 Dec 2016 - 14:46||Prashant||18.104.22.168||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.
|74||16 Dec 2016 - 11:39||Prashant||22.214.171.124||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||126.96.36.199||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||188.8.131.52||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.