NOT Easy to Do Business
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| # | Submitted | User | IP address | It was | Sector / Industry | State / UT(desc) | City | Response-time of officials | Number of documents to be submitted | Availability of information about the process | Overall Rating | It was an attempt to | Other | The problem was | Other cause | Details of experience | Advice for others | Share my story with | Name | Contact no | Privacy Policy | Contact me | Display it | |
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| 17 | 5 Nov 2016 - 08:10 | Anonymous (not verified) | 47.30.32.154 | Not Easy to Do Business | Private/Construction | Delhi | Sadar Bazar | 3/5 | 2/5 | 2/5 | 2/5 | Get construction permit | Corrupt officials who asked for bribes | It was quite tough to complete the construction on time due to the continuous and unnecessary interference of the officials on the construction site. | Always keep a copy of complete paper work with you |
Both Keep it Anonymous |
Anonymous | 9968068073 | sharma.richa1507@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 18 | 16 Nov 2016 - 13:10 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Printing/Designing | Delhi | Delhi | 2/5 | 1/5 | 1/5 | 1/5 | Register the business | Other | - | As I attempted to register my business, I faced a lot of problems. To start with, the laws are confusing pertaining to my industry. The designing and printing industry has made their own rules for invoicing. Even though I should have the right to decide the amount that I am charging for my services but the government insists on keeping their authority and decides it for me. The government officials are not supportive and there is no consensus on the documents requested by different departments. They made me run from pillar to post without giving any clarity. I also did not receive any support from the financial institutions to start my own company. | - | Senior Department Officials | Vishal Arora | 9212513666 | plazagraphicz@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 32 | 16 Nov 2016 - 17:56 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Software | Delhi | Delhi | 3/5 | 2/5 | 2/5 | 3/5 |
Register the business Pay taxes File returns under labour laws, environmental laws, tax laws, etc. Other |
Acquiring another business | Submitting the same document to different departments |
I had a difficult time starting my software business in Delhi. I didn’t have to pay a bribe to register a Pvt. Ltd Company but had to pay a bribe to complete the registration of a proprietorship. There is no clarity on taxation. For example, when you pay someone for their services you have to deduct 10% TDS. I had no idea of any sorts if that person is Amazon or a MNC who have their offices in India and if I had availed their services did I need to deduct 10% TDS. Amazon demanded a full payment. I contacted a dozen charted accountants and even a friend of mine who is in the Indian Revenue Service. None of them had a clue. But all of them suggested paying TDS to be on a safer side. So I had to pay the full amount to Amazon and on the top of that 10% to the dear Government of India. There are so many scenarios where there is no clarity at all. Investment laws are a total mess. God help you if you ever receive a FDI. I received it once only to the return the amount of Rs. 5 lakhs. This is because the amount of running about I would have to do was not worth the amount. The legal system is terrible. If I may say, it is effectively a joke. An acquisition of one my products fell through because the acquirer did not want to make disputes subject to the Indian jurisdiction in the contract. In the acquirer’s own words – “the Indian legal system isn’t held in very high regard here” (in Australia). There are high costs involved in doing business especially in India. My gateway charges a 5% premium (so a 3% + a 5%) for the Indian Businesses because of the increased cost of operations. So an American Company charges only 3% whereas I have no option but to settle at 8%. There are innumerable other hassles as well. It is like a death by giving thousand cuts. |
Even in the software industry, regulations are very high. Be patient and prepared to wait for a while to get through. |
Keep it Anonymous | Anonymous | 02026634513 | director@siu.in | I have read and I agree with the Privacy Policy mentioned below | Yes | ||
| 33 | 16 Nov 2016 - 17:59 | Anonymous (not verified) | 203.122.16.122 | Not Easy to Do Business | Financial | Delhi | Delhi | 3/5 | 4/5 | 2/5 | 3/5 | Register the business | Other | Registration of name |
I did not find it easy to set up my financial enterprise in Delhi. It took us a couple of months only to get the name of my company registered. Every time I submitted a name, it used to get rejected without any known reasons. It was very time-consuming, taxing and unnecessary. Only this step set me back by three months at least. Getting the trademark registered was a problem because I had to go through a lawyer. I fail to understand why couldn’t I find all the information myself and do it independently without involving extra costs. An entrepreneur abroad can do these things independently without taking anyone’s help. I could have saved a lot of money if I knew the procedures. |
Consult some expert who will help you out legally and also in financial matters. I think that’s the only way out because I couldn’t do everything on my own. |
Keep it Anonymous | Anonymous | 9649860773 | ishan.techwiz@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||
| 40 | 23 Nov 2016 - 18:18 | Prashant | 203.122.16.122 | Easy to Do Business | Manufacturing | Delhi | Delhi | 3/5 | 2/5 | 3/5 | 3/5 | Register the business | It was not a very complicated process to register the business. However the rules of Excise Duty and Sales Tax is one hassle I face. I have to redesign the process according to the various needs of our clients. At times this becomes a problem. Sanitation and cleanliness is to be maintained because inspection is something unexpected. | One has to be very persistent if you want to start a business. Stick with your project and fight the system. | Keep it Anonymous | Anonymous | 9310533008 | saurabh@dynapen.in | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 41 | 23 Nov 2016 - 18:31 | Prashant | 203.122.16.122 | Easy to Do Business | Textiles | Delhi | Hauz Khas | 4/5 | 3/5 | 3/5 | 3/5 | Register the business |
I registered Safomasi in 2012, when I set it up with my wife, and started it a year later. Signing the business up was the easy part. As a textile business, I also needed a big, clean space. That was really difficult. In fact, this current office is only the second location I took a look at – I did not want to look further and risk losing this one. It suits our needs. Overall, the process seemed complicated though. I wasn’t really involved in the set-up of the business myself. I handed down all the work to my accountant, who did it himself. In terms of the experience, it wasn’t a hassle to me personally, but I found the amount of paperwork required by the government to be too much, taxing and frankly, unnecessary. Moreover, there was no information available about the procedure online, so I didn’t know what the next step was and hence my accountant handled all of that. Hence like everyone even I had to go through a third party despite me having all the paperwork and documents in place. So there is registration fees involved and on the top of it there is this lawyers’ or accountants’ fees involved. If one has all their documents in place, he/ she should be able to independently register the start up and not required to go through a third party. I did not know any of the costs involved as well. They were nowhere to be found – not on the websites, nowhere. When I visited the government office, all kind of unnecessary questions were posed at me rather than asking relevant information pertaining to my business or documents. |
One has to learn how to deal with people. I’ve had different experiences with different people. I’d also advise them to conduct their business, keeping their finances in mind, and only take decisions that are financially sound. At the start, there will be a lot of costs involved, and the profits will trickle in slowly – one has to be patient with it. | Both | Mahinder Singh | 9650869053 | hello@safomasi.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |||
| 42 | 23 Nov 2016 - 18:40 | Prashant | 203.122.16.122 | 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. |
Both | Laura Quinn | 98107 76929 | laura.quinn@doonething.in | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 43 | 23 Nov 2016 - 18:51 | Prashant | 203.122.16.122 | 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. |
Both | Divij Kaul | 011 4660 2773 | bhavya@limnentertainment.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |||
| 44 | 23 Nov 2016 - 19:41 | Anonymous (not verified) | 112.110.25.51 | Not Easy to Do Business | Skill Development | Delhi | New Delhi | 1/5 | 1/5 | 1/5 | 1/5 |
Trade outside state/ country Other |
Getting due payments cleared from the Government | Delay by the department even though I completed the procedure | Central government does not pay to the states and the state government does not pay to the service provider. And eventually when this happens state government officials seek undue advantages. | Let's gather and raise our voices. It may affect our businesses temporarily buy now that Modi government at the Centre is working selflessly, things can be expected to get better. | Both | Varun Gaba | 8800394950 | Profeasion.gaba@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | |
| 47 | 28 Nov 2016 - 12:47 | Prashant | 203.122.16.122 | 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. |
Take loads of copies of all your documents when you go. Carry food. Try not to bribe them, in spite of how alluring it may seem! | Keep it Anonymous | Anonymous | 7767021676 | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes |