NOT Easy to Do Business
|31||16 Nov 2016 - 17:52||Anonymous (not verified)||22.214.171.124||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.
|35||16 Nov 2016 - 18:03||Anonymous (not verified)||126.96.36.199||Not Easy to Do Business||E-Commerce||Maharashtra||Mumbai||3/5||3/5||1/5||3/5||
Register the business
Trade outside state/ country
|Submitting the same document to different departments||
The biggest problem is the lack of clarity in the process. I went to the company registrar's office and took a form, filled it and submitted it to the officer. He gave me 'n' number of reasons explaining why they cannot accept the form, and I was given a long list of documents needed for my form to be accepted. Now to get each of these documents, I had run around to different departments of the government. No one offered help at the government office, because they expected a bribe to solve my queries.
I collected all my documents from all the offices to submit these documents to the same officer only to know another set of reasons why my form won’t be accepted and another set of documents to be submitted. At this point, I was so frustrated that I asked the officer why he didn’t tell me about these reasons and documents earlier. And he simply smiled and said, I forgot.
There will be lot more things you experience when you visit a government office. The officer was busy with some government work, which he was not supposed to be given in the first place. So this is used as an excuse to not meet you but the real reason is that he somehow wants to extract bribe from you. The more frustrated you are, the more he earns. Government employees could find a million reasons to not deal with you or your issue, and there is nothing you can do about it.
According to the standard government procedure one can complain to his higher officers but the higher officers are equal partners in taking bribe. All have defined what charges will be taken as a bribe when you want something from them.
How do I know about this? I am a son of a government officer (not company's registrar, but another government department) and despite that I tried to register my company honestly. I know both the sides of the coin. My dad tried to fight this as an honest officer when he was young. He has to visit courts till this date because some senior officers framed him in the wrong case. The last case has been running for last 2 years. My dad tried to contact everyone he can above his officers but all told him to shut up and be part of the system or else he will be in jail for sure.
If you ask me for a solution, then it's done already in passport offices. TCS is running that department amazingly. The process is exactly described on their website. No local laws affect that procedure. And your turn is decided once you register online. You will surely be able to finish with the procedure in 1 or 2 hours. You know exactly what is needed before going to that department.
|Don't plan on doing business in India. Move abroad!||
Senior Department Officials
Keep it Anonymous
|36||21 Nov 2016 - 12:10||Prashant||188.8.131.52||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.
|62||14 Dec 2016 - 14:46||Prashant||184.108.40.206||Not Easy to Do Business||Media||Delhi||Gurgaon||3/5||1/5||1/5||2/5||
Register the business
Trade outside state/ country
|Delay by the department even though I completed the procedure||
I set up my media firm in Gurgaon earlier this year. In short, it wasn't easy to start a business.
I never intended to do everything myself- my dad had suggested that I hire a CA not only to handle my finances, but also finish up this procedure. But I wanted to see the situation for myself, so I decided to accompany him the first day.
To my surprise, even my CA had employed someone to do the work for him. I followed this one guy around, who seemed to have undergone this process a thousand times - he was so unfazed by the sea of people around him. I lost him on a couple of occasions, but in one line or the other, we would be reunited.
I asked him if he wanted me to stand in any line for him, but he refused, and told me he had a "setting" with the office people. After the first couple of lines, he used to just keep the documents on the clerk's desks, and way away, with no regard for the line of people behind him. Some shouted, some gave dirty looks. However, he was always unfazed.
I was surprised at his lack of care for others, and we got done by lunchtime. A week and a half later, I had my permits and registration licences, and my business was ready to go.
|65||14 Dec 2016 - 17:12||Prashant||220.127.116.11||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!
|70||15 Dec 2016 - 16:11||Prashant||18.104.22.168||Not Easy to Do Business||Sports||Delhi||Gurgaon||3/5||2/5||1/5||2/5||
Get permits and licenses under environmental laws
|Other||Laziness on the part of officers||
I opened a sports shop in Gurgaon, which unfortunately did not work. However, my experience was mostly a pleasant one.
Unlike most people, I chose not to hire a CA, mostly because I couldn't afford to spend so much money on something that I thought could be done alone.
Unfortunately, I was made to run around a fair bit on my first day. It was quite taxing, and just when I thought there could be some progress, they broke for lunch.
Now, there is some sort of an unwritten rule at these government offices- lunch breaks shall last for about double the time they are supposed to last. The stipulated break was from 1 pm to 2 pm, but I couldn't spot anyone at the office till about 2:45 pm, and the counter only opened at 3 pm. So much for efficiency.
I ultimately got my work completed a week or so later, but not without lots of effort and running around from my side.
|72||16 Dec 2016 - 08:41||Prashant||22.214.171.124||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.
|78||16 Dec 2016 - 13:58||Anonymous (not verified)||126.96.36.199||Not Easy to Do Business||Online sales||Delhi||New Delhi||1/5||1/5||1/5||1/5||Trade outside state/ country||Confusing laws that say different things||
Amazon operates in 13 countries worldwide.
However, only amazon.in requires the seller to have a company registration certificate and a VAT certificate to even register as a seller.
Make In India, my foot! Decided to sell on amazon.com.
I'm very idealistic too. After reading all the replies on our website, I'm depressed and shattered. I don't think I can ever get myself to bribe someone. Don't have any connections too(even if I did, I don't think I would be very comfortable using them!). Feeling helpless at the moment- it shouldn't be this difficult to start a business, should it?
|84||16 Dec 2016 - 17:08||Anonymous (not verified)||188.8.131.52||Not Easy to Do Business||Clothing||Maharashtra||Pune||2/5||1/5||1/5||1/5||Register the business||Can’t find information||
In short, it was a nightmare.
I tried to start a clothing brand late last year, thinking that I would conduct a fair business in Pune. I wanted to register my company legally, and pay my taxes duly, irrespective of how my business went.
But after going through this procedure, I realised why people don't take the white route! It takes a ton of time to get everything sorted, and more so to roll out.
Getting clearances from these babus was one thing, and sustaining the business entirely another. It seems like they have all the time in the world to harass us, but not to help us. I am thoroughly disillusioned with the state of the business sector in this country.
Though my business is fairly successful now, I can never forget the hell I have been through to make it till here. I can only hope it is the not the same for others.