NOT Easy to Do Business
|35||16 Nov 2016 - 18:03||Anonymous (not verified)||22.214.171.124||Not Easy to Do Business||E-Commerce||Maharashtra||Mumbai||3/5||3/5||1/5||3/5||
Register the business
Trade outside state/ country
|Submitting the same document to different departments||
The biggest problem is the lack of clarity in the process. I went to the company registrar's office and took a form, filled it and submitted it to the officer. He gave me 'n' number of reasons explaining why they cannot accept the form, and I was given a long list of documents needed for my form to be accepted. Now to get each of these documents, I had run around to different departments of the government. No one offered help at the government office, because they expected a bribe to solve my queries.
I collected all my documents from all the offices to submit these documents to the same officer only to know another set of reasons why my form won’t be accepted and another set of documents to be submitted. At this point, I was so frustrated that I asked the officer why he didn’t tell me about these reasons and documents earlier. And he simply smiled and said, I forgot.
There will be lot more things you experience when you visit a government office. The officer was busy with some government work, which he was not supposed to be given in the first place. So this is used as an excuse to not meet you but the real reason is that he somehow wants to extract bribe from you. The more frustrated you are, the more he earns. Government employees could find a million reasons to not deal with you or your issue, and there is nothing you can do about it.
According to the standard government procedure one can complain to his higher officers but the higher officers are equal partners in taking bribe. All have defined what charges will be taken as a bribe when you want something from them.
How do I know about this? I am a son of a government officer (not company's registrar, but another government department) and despite that I tried to register my company honestly. I know both the sides of the coin. My dad tried to fight this as an honest officer when he was young. He has to visit courts till this date because some senior officers framed him in the wrong case. The last case has been running for last 2 years. My dad tried to contact everyone he can above his officers but all told him to shut up and be part of the system or else he will be in jail for sure.
If you ask me for a solution, then it's done already in passport offices. TCS is running that department amazingly. The process is exactly described on their website. No local laws affect that procedure. And your turn is decided once you register online. You will surely be able to finish with the procedure in 1 or 2 hours. You know exactly what is needed before going to that department.
|Don't plan on doing business in India. Move abroad!||
Senior Department Officials
Keep it Anonymous
|37||21 Nov 2016 - 17:53||Prashant||126.96.36.199||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!
|42||23 Nov 2016 - 18:40||Prashant||188.8.131.52||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.
|44||23 Nov 2016 - 19:41||Anonymous (not verified)||184.108.40.206||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||220.127.116.11||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.
|47||28 Nov 2016 - 12:47||Prashant||18.104.22.168||Not Easy to Do Business||Media||Delhi||New Delhi||3/5||2/5||1/5||2/5||Register the business||Submitting the same document to different departments||
I did not know where do we start.
The whole process took me about fifteen days, just to register a sole proprietorship. Now, I know it may not sound like a lot, but it is a lot when one circles a government office for two weeks, every single day.
Every other day, they would ask me for a different document. Then, they would direct me to another desk, where the same procedure was followed. I was never asked for a bribe, but in retrospect, I wouldn't have minded if I paid a few hundreds here and there, if that meant my work would get done faster.
There isn't even a proper parking space outside the offices. Thank god for Uber! One of the worst things about making rounds of these offices was that you had to wait there until your number or name is called for. I remember staying hungry for the first day. From the next day, my mother sent a tiffin with me! A lot of other people brought some food as well, so it was pretty apparent that they were accustomed to such a system.
Lastly, I wish the system required less paper - not only for convenience, but also as a concern for the environment. It creates unnecessary hassles and wastage. How about starting an app, on which you can scan and directly send your documents? I think it would make everyone's work a lot more easier.
|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.
|49||30 Nov 2016 - 16:40||Prashant||126.96.36.199||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.
|50||5 Dec 2016 - 18:26||Prashant||188.8.131.52||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.
|52||8 Dec 2016 - 14:14||Prashant||184.108.40.206||Easy to Do Business||Education||Uttar Pradesh||Meerut||3/5||3/5||1/5||3/5||
Register the business
The overall process of getting the registration and acquiring land for setting up a small unit that manufactures stationary was quite simple. I did not have to pay any bribe, though the waiting time was a little more than required.
The office in Meerut was filled with people filing registration requests for the textile industry. Since I filed under a different department, my process was a little more smooth and streamlined.
It took me a week to get my registration completed, and a another week and a half to get the land clearances completed. The location already had electricity and water connection, so we didn't apply for new connections.
The officials, however, behaved as if they were doing us a big favour. They were just doing their job, but still had a bit of an ego about it. I did not appreciate that.