NOT Easy to Do Business
|66||14 Dec 2016 - 17:40||Anonymous (not verified)||220.127.116.11||Not Easy to Do Business||Media||Karnataka||Bangalore||2/5||4/5||2/5||3/5||Register the business||Corrupt officials who asked for bribes||Initially we tried to register our company ourselves. But the officials kept on delaying for reasons only known to them. Every time we went to the office to submit the documents asked to submit, we were asked for some different documents. Then we approached an agency and they were able to do the work easily. So we were not able to register by ourselves and had to approach a third party.||
For registering business, the process will be easier only when you approach some agencies or know some insider.
Many agencies have come up with packages as the process is cumbersome. For example: http://www.legalwiz.in/private-limited-company?gclid=CJ2w8fjS89ACFc4SaAodUy4PAg is a website which is quite helpful in this regard.
|73||16 Dec 2016 - 09:04||Prashant||18.104.22.168||Not Easy to Do Business||Restaurant||Uttar Pradesh||Lucknow||3/5||3/5||2/5||3/5||Register property||Corrupt officials who asked for bribes||
My whole issue was not while setting up the actual business, but while conducting it here. I run a restaurant, and officials often come and ask for bribes.
What would you do if a food inspector comes to your restaurant and demands a bribe for the inspection? If you don't comply he will file a report which claims he found 10 cockroaches at your facility, and shut you down until an investigation is completed.
You don't have a choice. If you don't pay a bribe, you can't do business in India. Government officers won't even let you register your company or get basic approvals to function!
|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.
|77||16 Dec 2016 - 13:51||Prashant||184.108.40.206||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.
|79||16 Dec 2016 - 14:12||Prashant||220.127.116.11||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||18.104.22.168||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.