NOT Easy to Do Business
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| # | Submitted | User | IP address | It was | Sector / Industry | State / UT | 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(asc) | Details of experience | Advice for others | Share my story with | Name | Contact no | Privacy Policy | Contact me | Display it | |
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| 64 | 14 Dec 2016 - 17:01 | Anonymous (not verified) | 122.178.204.191 | Not Easy to Do Business | Non-Profit Organisation | Karnataka | Bangalore | 2/5 | 2/5 | 1/5 | 2/5 | Register the business | Corrupt officials who asked for bribes | When I went to register my organisation, I couldn't find any information like what are the documents required, whom to approach in the office, what are the fee details (if any), what are the services given in this office, etc. All I could see were "brokers/intermediaries" who approached the clients/people, whomsoever was coming to their office and advising, directing, and doing documentation work and getting money (including bribes to be paid to government officials starting from peon to registrar). He was having a rate card - who will take how much and for what work. The rate varies from service to service. The brokers are influential enough to speak directly to the so called top officer namely "Registrar" in that office. It is a common scene in all government offices such as Regional Transport Office, Tehsildar Office, Revenue Office, Collector Office and even in Court premises. It is very difficult for a common man to complete his/her work in government office without these intermediaries/ brokers or middleman. Brokers are acting as one window system to complete your work in government offices. |
a) Government should get rid of all brokers/intermediaries from government offices. They should not be allowed to run shops near these government offices. b) Government should not allow intermediaries to roam freely in government offices. Why is the government allowing access to these middlemen/ brokers in government offices and access to government seal, computer, etc? c) Government should display "citizen charter" with more details, which can be understood by a common man. d) Like social audits, we should create "social anti-corruption squad'', where common people can enter into any office and search officials for any possession of money apart from his own. I understand it is not practically feasible, still, we need to create some kind of responsibility amongst government employees. Or any other way accountability can be assured. e) Why doesn't the government not talk about performance of each and every employee of the office. Like in private sector, we should assess employees' performance with more transparent ways instead of present practice like 'performance report by higher official'. All the government officials are out to cheat the common people. So, the performance of the employees should be output based and outcome based. For, example, how many files are seen by a clerk on one day? or how many certificates are issued by VAO in a month?, etc. f) What the employee unions are doing I don't understand. In the old days, the employee unions were formed to strengthen the unity of the employees against their bosses. But today, these employee unions (government) are threatening the bosses. It is a good thing that they are joining hands for their rights. At the same time, they should think about how they are giving service to its people (for which they are getting paid). Are the unions taking actions against its employees, who are corrupt, not working properly, torturing the people unnecessarily, etc? If they think in such a manner, only then they have right to ask for a pay hike, employees rights, etc. g) I don't understand what the department vigilance commissions and anti-corruption bureau are doing. They only showcase the case when they catch the officers, after that, they are not showcasing the progress of the case to the public. How many people are really given punishments for their corrupt acts? |
Both | Senthil Nathan | 9566234440 | brahma.senthil@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 | ||
| 65 | 14 Dec 2016 - 17:12 | Prashant | 203.122.16.122 | Not Easy to Do Business | IT | Delhi | Gurgaon | 4/5 | 3/5 | 1/5 | 3/5 | Register the business | Can’t find information |
I set up an IT firm earlier this year. My company was a small one, and we worked out of our house in Gurgaon, so we just had to register the company. The whole process for the category I was applying under was a digitised process, so I was pleasantly surprised. However, I did have to go to the office to submit my documents - I didn't understand why couldn't that procedure be digitised as well! One could easily scan and submit the required PDF files. However, my main issue was the lack of availability of information. If someone has to start a business, a simple Google search should be helpful and enough. I couldn't find any information myself, so I had to call up another friend who had set up a similar business couple of years ago. However, from what he told me, the process has become much simpler, so kudos to the government on cutting the red tape - I just wish they would have advertised it better! |
Ask someone who has already registered business in the field, they should be able to help you out, or hire a lawyer who will make the process easier for you. | Senior Department Officials | Shyam Mohan | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 66 | 14 Dec 2016 - 17:40 | Anonymous (not verified) | 106.51.241.213 | 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. |
Keep it Anonymous | Anonymous | 9886918876 | ranjith@knappily.com | I have read and I agree with the Privacy Policy mentioned below | Keep me updated about responses to my report and experience. | Yes | ||
| 69 | 15 Dec 2016 - 15:24 | Prashant | 49.204.110.82 | Easy to Do Business | Marketing | Delhi | Gurgaon | 3/5 | 4/5 | 2/5 | 3/5 | Register the business |
I decided to start my own marketing firm in Gurgaon, after I was quite dismayed with my previous job. However, I did not know anything about the procedure, so I consulted a CA about it. He told me a fairly decent amount for the registration, and told me that I needn't worry about anything. It took me a week to get my registration done, and I did not have any issues with it, mainly because my CA completed all my formalities. I had to only submit my Aadhar card and PAN card, nothing more. Since I didn't go to the office myself, I wouldn't know how many copies of each were required. |
Hire a CA, you won't have to worry about anything. | Both | Sneha Bhattacharya | 7042823213 | b.snehaaa@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 71 | 15 Dec 2016 - 17:21 | Prashant | 49.204.110.82 | Easy to Do Business | Software/IT | Delhi | Gurgaon | 3/5 | 3/5 | 1/5 | 2/5 | Register the business | Registering an online company under sole proprietorship is the easiest way to run a business in this country. I did mine that way, and it took less than three days for it to come through. My business was up and running three days after that. | I honestly think others make a big deal out of starting a business in India. All one has to do is talk to someone who has done this before- they'll guide you. | Both | Mayank Gupta | 99876547864 | mayankgupta52@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 72 | 16 Dec 2016 - 08:41 | Prashant | 49.204.110.82 | Easy to Do Business | Food | Delhi | Gurgaon | 2/5 | 3/5 | 1/5 | 2/5 | Register the business |
Getting the permits was not an issue, apart from finding information about it. I did everything myself, and got all the permits within a month, and my food supply company was up and running within six weeks. The real problem arises after you start the business. The attitude of customers/vendors/clients. People feel no remorse about wasting someone's time, or indulging in petty cheating. Of course things like these are present in the west too, but the magnitude is different. Oh, and this is more present in North India than in South! This reflected even while I was getting my permits- people just wasted everyone else's time, if it meant getting their work done five or ten minutes earlier. |
Be mindful of people. Don't give anyone any way in your lines. | Senior Department Officials | Sumit Pathak | 9873056915 | pathaksumit@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | ||||
| 73 | 16 Dec 2016 - 09:04 | Prashant | 49.204.110.82 | 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! |
Corruption is rife and necessary. Be prepared to bribe someone or the other. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 74 | 16 Dec 2016 - 11:39 | Prashant | 49.204.110.82 | 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. |
It's a tough road, starting and conducting business in India. Be prepared for a lot of hardships. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 75 | 16 Dec 2016 - 12:06 | Prashant | 49.204.110.82 | 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. |
Avoid spending your time and grey matter on running around, and hire somebody to do it for you. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes | |||
| 76 | 16 Dec 2016 - 12:25 | Prashant | 49.204.110.82 | 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. |
Don't invest in Indian companies. | Keep it Anonymous | Anonymous | - | abcd@gmail.com | I have read and I agree with the Privacy Policy mentioned below | Yes |