NOT Easy to Do Business
|42||23 Nov 2016 - 18:40||Prashant||188.8.131.52||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.
|44||23 Nov 2016 - 19:41||Anonymous (not verified)||184.108.40.206||Not Easy to Do Business||Skill Development||Delhi||New Delhi||1/5||1/5||1/5||1/5||
Trade outside state/ country
|45||24 Nov 2016 - 15:35||Prashant||220.127.116.11||Not Easy to Do Business||IT||Telangana||Hyderabad||2/5||1/5||1/5||1/5||Register the business||Confusing laws that say different things||
Bureaucrats are more often insensitive than not, and do not have the mentality of helping citizens. Rather, they have the mentality of making things as difficult as possible - they think their job is to make things more difficult for citizens. A lot of markets are controlled by guilds and associations of existing businessmen. They place a high cost of entry for new entrants, especially someone without connections in the business community.
I experienced extortionate behavior by local working class people, goons, thugs and small time politicians/crooks. Bribes on the preface of "donations" for 100 different religious festivals a year are taken. There is a total lack of rule of the law and lawlessness. It is a utter failure on the part of the police and judiciary since they do not have the capacity to dispose cases in a timely manner. One needs to be careful and look out for extortionate,fraudulent and deceiving behavior by lawyers and some Charted Accountants.
|76||16 Dec 2016 - 12:25||Prashant||18.104.22.168||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.
|78||16 Dec 2016 - 13:58||Anonymous (not verified)||22.214.171.124||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?
|74||16 Dec 2016 - 11:39||Prashant||126.96.36.199||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.
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