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I tried starting a manufacturing unit in India (2020)

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Re: I tried starting a manufacturing unit in India (2020)

#131

Post by PubliusMI »

ekianjo wrote: post #120
jwr wrote: post #104

Earlier quoted context omitted.

Ahem. We're talking about a country where a chancellor that pushed for building a gas pipeline from a foreign country went straight to the board of the foreign company running that pipeline after ending his term as chancellor. Corruption is everywhere, it's just on different levels. Usually in more "developed" (I don't like that word) countries you see corruption on the highest levels, and people actually get away wi…

in The US recently a commissioner at The FDA got offered a high exec position at Pfizer. Nobody says anything about that...

There's literally an entire political party dedicated to ridiculing Democratic nonsense during the pandemic.

Re: I tried starting a manufacturing unit in India (2020)

#132

Post by Vespasian »

ricardobayes wrote: post #122
ClumsyPilot wrote: post #100

Earlier quoted context omitted.

The video talk about Russian military handing out Million dollar contracts to companies registered weeks before the tender. Well, guess what, the exact same thing happened in UK for PPE contracts: "Within weeks of the company’s incorporation on 12 May 2020, PPE Medpro was awarded contracts worth £203m to supply millions of masks and gowns." https://www.theguardian.com/politics/2022/jan/07/michelle-mo...

It's actually kind of disturbing how there are basically only a handful of countries on the planet without systematic corruption. Maybe there are none. Perhaps it's a human trait.

Some types corruption are worse than others.

With the typical Western "overpay for a modern tank/gun/piece of equipment by a factor of 2" style you still get a modern tank/gun/piece of equipment in the end.

From what I heard, for example, in Russia you do that but then the quartermaster goes and sells half of your equipment off on the black market and the grunts sell off the other half and replace it with something much inferior.

The first kind of corruption is bad and should be rooted out, but the second type is much more destructive as can be seen in Ukraine right now. Secrecy at all levels and for minor details, as well as "encouragement" from the highest levels of politics for this kind of theft are core ingredients.

Re: I tried starting a manufacturing unit in India (2020)

#133

Post by sn41 »

megablast wrote: post #65
etaioinshrdlu wrote: post #10

Earlier quoted context omitted.

Countries with high paperwork and bureaucratic burden are famous for also being highly corrupt. This is probably not a coincidence. Likely all the excess paperwork makes it easier to hide what's really going on, easy to provide roadblocks for those who don't pay, and easier to generally hide bad activity in a sea of noise.

Is Japan the exception?

From my experience with both countries, surprisingly, Japan is more paperwork oriented than India. For some reason, they really want things in hard-copy, too.

The difference, and it's a major one, is that paperwork does not slow the pace of work in Japan. Once papers are there, progress is usually instantaneous.

Re: I tried starting a manufacturing unit in India (2020)

#134

Post by 19h »

m12k wrote: post #117
klausjensen wrote: post #109

~5 years ago, I hired three Indian developers. They asked me if we could set up an Indian legal entity, so that they could just get regular salaries in India with tax payments, deductions etc taken care of. I agreed and we got it done. One of the worst business-decisions of my life. The amount of red tape, stupid rules, corruption, signatures, stamps, showing up physically in a certain office etc etc... Mindblowing.…

In the meantime companies like remote.com and similar have sprung up, providing "employer of record" services. Basically they let you outsource the act of having a company in a given country and employing people through it, much like how Stripe lets you outsource the whole merchant account thing for payments. It seems that whenever there's red tape, there's a business opportunity in paving over it and providing a san…

I would like to second this recommendation. We’ve been using remote.com and hiring internationally suddenly became very possible and we can’t be any more happy.

Before this hiring internationally was a pure nightmare to the point that we simply didn’t accept international remote developers.

Thanks Remote!

Re: I tried starting a manufacturing unit in India (2020)

#135

Post by dottedmag »

pseudo0 wrote: post #18

It seems like the problem is that the author has a moral objection to paying bribes in an area where bribery is customary: > Obviously, they are playing “hard to get” to get me to pay some bribe and initiate the process. But after going through all this, I am not going to pay any bribe to anyone. And: > And they openly demanded bribes after waiting for four months. > So the Gram Panchayat NOC is stuck because of non…

India Penal code, 171E.

Up to 1 year in prison.

Re: I tried starting a manufacturing unit in India (2020)

#136

Post by dottedmag »

sam_goody wrote: post #45

I do not understand the authors issue with paying bribes. You want your factory, you are willing to pay lots of money for it, and the system works with bribes. Fine, so be it. Pay the bribes and get to work. I once lived in such a country*. The unfairness is built in, but if you have the money, you can get whatever you need relatively quickly. If you are trying to save money, fine. But you are willing to go to court,…

India Penal code, Section 171E.

Up to 1 year in prison. Do you wish to be exposed to this?

Re: I tried starting a manufacturing unit in India (2020)

#137

Post by karterk »

klausjensen wrote: post #109

~5 years ago, I hired three Indian developers. They asked me if we could set up an Indian legal entity, so that they could just get regular salaries in India with tax payments, deductions etc taken care of. I agreed and we got it done. One of the worst business-decisions of my life. The amount of red tape, stupid rules, corruption, signatures, stamps, showing up physically in a certain office etc etc... Mindblowing.…

Back when GST was introduced, they asked all exporters of software services to pay the 18% GST and then claim a refund because exports are exempted. This was before they introduced a process to apply for a "NOC" (which must be renewed periodically I think). So, I duly paid GST for the first couple of months.

5 years later, I'm yet to receive the refunds. First, they said that they were authorized to only sanction refunds for exporters of physical goods and then they said that this is handled by the State government, who said that it was handled by the Central. Finally Central accepted that they are in-charge of the refund, but by then COVID happened and I could not follow up for 2 years. In May, when I tried to claim the refund again, they said that this refund pertains to 2016 and it's difficult to "reopen" the accounts for that year and that's handled by yet another department. So, they have written to them to ask for the process. No replies after two emails. Story continues...

Re: I tried starting a manufacturing unit in India (2020)

#138

Post by testemailfordg2 »

Not sure if political parties in India provide assistance in these cases, in return for electoral funding via completely legal and annonymous electoral bonds. This would be similar to lobbying in the west. But the question is for how much, they would be willing to help.

Re: I tried starting a manufacturing unit in India (2020)

#139

Post by kumarvvr »

giva wrote: post #6

> Yes, you need to obtain “permission” before you build any manufacturing structure on your own land with your own money. This permission is called the NA or Non-Agricultural Certificate. Well, I though it was this way everywhere in the world. In Europe, at least, you cannot build anything on agricultural land unless it is a n agricultural structure or you get the classification changed, which is not easy.

Yeah, that statement is a bit of a hyperbole.

I think in the US this is called Zoning and you need Zoning permissions or something similar.

Re: I tried starting a manufacturing unit in India (2020)

#140

Post by pythonbase »

klausjensen wrote: post #109

~5 years ago, I hired three Indian developers. They asked me if we could set up an Indian legal entity, so that they could just get regular salaries in India with tax payments, deductions etc taken care of. I agreed and we got it done. One of the worst business-decisions of my life. The amount of red tape, stupid rules, corruption, signatures, stamps, showing up physically in a certain office etc etc... Mindblowing.…

Perhaps they were looking for some under-the-table deal, commonplace in the government offices of the subcontinent, that you failed to realise. Here, you need to may money to get your money back.
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