NOT Easy to Do Business
|17||5 Nov 2016 - 08:10||Anonymous (not verified)||184.108.40.206||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||
Keep it Anonymous
|19||16 Nov 2016 - 14:38||Anonymous (not verified)||220.127.116.11||Not Easy to Do Business||Hospitality/ Tourism||Goa||Anjuna||3/5||4/5||2/5||3/5||
Register the business
Get permits and licenses under environmental laws
Get building plan approved
Get electricity connection
|Tourism and F&B licenses||Can’t find information||I have recently started a new business in Goa in the hospitality and tourism sector. I tried to register a new business, register property, get permissions and licenses under environment laws, get my building’s plan approved, get electricity connection and tourism, food and beverages licenses. The paperwork that was required for getting licenses is efficient and streamlined but the procedures and processes involved in getting these licenses are very complicated. The procedures are not clearly defined and one can easily get confused since there is a lot of contradicting information. The government officials are themselves confused and do not have any sort of clarity since the procedures keep on changing frequently. All of this leads to delay at the cost of the citizen’s time, effort and money.||
My advice to other entrepreneurs is that - you should start all the procedures as soon as possible as the time taken to obtain licenses can vary from a few days to even a few months. I am of the opinion that if you have a certain kind of rapport with certain officials or “know” a few of them it tends be of great help in getting your licenses on time.
Keep it Anonymous
|31||16 Nov 2016 - 17:52||Anonymous (not verified)||18.104.22.168||Not Easy to Do Business||Financial Advisory||Maharashtra||Pune||2/5||1/5||2/5||2/5||Other||Filing tenders||Can’t find information||
I was told it would take five years for me to get a permanent certificate for my financial services company and until then a temporary certificate would be issued. I bribed Rs. 6,000 and got the registration certificate in three days. My father already had one manufacturing business and intended to open a new business. Since he did not have the time to run around for completing the formalities, we had to hire an accountant and he charged us Rs. 40,000. Like most of the other entrepreneurs, even I had experienced what it really meant to go to bureaucrats and experienced red tape. I had to go various people for ‘n’ number of signatures and stamps. There were so many corrections I had to make in multiple documents to get my company registered. I don’t think there is anything called as – ‘single window clearance’.
My father had to set up a chemical plant and had to wait for a year to get environmental clearances. He also had to pay bribes along the way and despite wait for a year. How do we make in India if we are not allowed to make in India?
There is no clear knowledge about how to start a company. Most of the people are of the opinion that a lot of money is required to start a company. I started my company with Rs. 8,000 out of which Rs. 6,000 was a bribe. Even if people have some really fascinating ideas, they don’t start a company because they think that it will cost them a lot.
The tendering process of the government is flawed and corrupt. It is always given to people who are ‘known’ to the government officials. Once when we managed to get a contract on a fair basis because we really did quote low prices, we were called and blasted by an official. He asked us how we could take up the project when we had no clue about the place where the project was going to start. He finally introduced us to an agent who had taken care of all the previous people who had managed to get the contracts.
This is my experience of Pune, Maharashtra. I have no clue how does it work anywhere else in the country.
|32||16 Nov 2016 - 17:56||Anonymous (not verified)||22.214.171.124||Not Easy to Do Business||Software||Delhi||Delhi||3/5||2/5||2/5||3/5||
Register the business
File returns under labour laws, environmental laws, tax laws, etc.
|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.