NOT Easy to Do Business
|36||21 Nov 2016 - 12:10||Prashant||126.96.36.199||Not Easy to Do Business||Passport||Maharashtra||Palghar||3/5||2/5||3/5||3/5||Other||Obtaining a passport||They keep asking me to submit some new document every time||
Doing business in India is like travelling on a road with multiple roadblocks. Every hurdle has to be crossed in order to reach your destination. Unnecessary & excessive laws hamper business growth. Time consuming approvals required at every step.(1) As an example, Indian passport applicants in Palghar district of Western Maharashtra are asked to bring one witness(2) who is not a relative and should reside in the same building as the person who wants a passport.
Does such a rule even exist? No such law is clearly mentioned on Passport Seva website(3). So, an applicant has to visit the Passport Seva Kendra (PSK) with original documents, then again to Police Station with same original documents and also the witness from same building. Why can't both be integrated? Also, laws need to clear cut for valuable documents like a passport.
Any genuine entrepreneurs, small businesses or solo travellers in Palghar district may not be able to expand their journeys, if they can't bring witness from same building.
In my opinion, this is just ridiculous! One shouldn't have to go through such pains to obtain a passport. And even if the procedure is a little lengthy, they should at least mention it clearly on the website.
|37||21 Nov 2016 - 17:53||Prashant||188.8.131.52||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!
|38||23 Nov 2016 - 17:52||Prashant||184.108.40.206||Not Easy to Do Business||Education||Maharashtra||Mumbai||4/5||3/5||3/5||3/5||
Register the business
Get electricity connection
|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.
|46||24 Nov 2016 - 17:02||Prashant||18.104.22.168||Not Easy to Do Business||Labour||Karnataka||Mysore||2/5||3/5||2/5||2/5||Get registration and licenses under labour laws||Other||Labour issues||
For me the problem was dealing with the labour. The problem is that they deserve better, but I cannot pay them more than the market for the fear of being noncompetitive and losing business. But then they don't care much for the money they are paid. Timelines, work ethics, etc. mean nothing to them. But I don't blame them.
Right now it's Modi ji's kripa. My business is dead for next few months. No new projects are going to come in, as people are going to hold onto their money now especially if their net worth is less now maybe due to black money, or maybe due to crashed property. The future is uncertain. This policy is really anti-small trade business. People like Ambani selling the daily essentials to common men will not be affected, since demand will never drop.
Then, there is also the fear of being prosecuted for something you haven't done wrong. For example, not deducting the right TDS, or putting the wrong tax. Kejriwal had come out with a system of code for each item. Nobody implemented it! We do our work, but need to keep up with stupid compliances, which are subject to whims and fancies of illiterate politicians- most of whom haven't seen a business meeting in their lives, I am sure! It just takes up so much of your time. Harassment by officials is a valid and certain threat.
|47||28 Nov 2016 - 12:47||Prashant||22.214.171.124||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.
|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.