Ritam Garg Management in India – 4

Doing Business in India A perspective on time Addressing issues of respect Non-verbal communication Strikes The creaky wheels of bureaucracy Festivals Marriages Familial fraternization Sometimes the office is taken home Small talk is big Going by the book

…….contd. Not too good with paperwork Queing? Business cards Transport traditions and travails The tower of Babel? Herd mentality rules They mind their Ps and Qs, but differently Pecking orders matter English?

Starting a business in India IFC’s and World Bank’s doingbusiness.org website outlines the following steps for starting a business in India: Obtain director identification number (DIN) online from the Ministry of Corporate Affairs portal (1 day, INR 100) Obtain digital signature certificate online from private agency authorised by the Ministry of Corporate Affairs (3 days, INR 1500) Reserve the company name online with the Registrar of Companies (2 days, INR 500) Stamp the company documents at the State Treasury (State) or authorised private bank (1 day, INR 1300) Get the Certificate of Incorporation from the Registrar of Companies, Ministry of Corporate Affairs (5 days, INR 200 for MOA + INR 1,000 for AOA for every INR 500,000 of share capital or part thereof + INR 100 for stamp paper for declaration Form 1) Make a seal (1 day, INR 350) Obtain a Permanent Account Number (PAN) from an authorised franchise or agent appointed by the National Securities Depository Ltd. (NSDL) or the Unit Trust of India (UTI) Investors Services Ltd., as outsourced by the Income Tax Department (7 days, INR 67) Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the City Income Tax Department (7 days, INR 57) Register with the Office of Inspector, Shops, and Establishment Act (State/Municipal) (2 days, INR 6500) Register for Value-Added Tax (VAT) at the state Commercial Tax Office (12 days, INR 5,100) Register for Profession Tax at the Profession Tax Office (2 days, No cost) Register with Employees’ Provident Fund Organization (12 days, No cost) Register for medical insurance at the regional office of the Employees’ State Insurance Corporation (9 days, no cost)

Summary Points No one size fits all Listen and learn India is still not like Germany or any other developed economy You have to be in it for a long haul – If you are looking for quick gains then perhaps you need to think again “Adapt” to win “Innovate” in products and the business model Learn to accept the “challenges” that India would present and take it in your stride

…..contd. Expect to be treated like an important guest Learn to receive, graciously Be prepared to participate in a relationship of exchange Expect to give something in return Role carries specific duties Know the individual, as well as the organisation “Caste” is a mindset Mind the lines of power Know why you are taking the trip (goals, objectives, etc.)

……..contd. A little preparation won’t hurt Completing the project may not mean the end of the project Don’t shy away from seeking advice from your “local” talent The upwardly mobile middle class is diverse, young, and committed to change Philanthropy arise out of religious and social principles Actions and words speak louder than the written documents The primary purpose of a contract is to create order Negotiate, enlisting an exploration of multiple perspectives

……contd. Time is flexible Workspace is a sacred place, so don’t be mystified by the public displays of daily prayers Spatial clues signify degree of hierarchy Indian culture provides a range of gender roles Body language can easily be misinterpreted Women experience different level of gender bias “Culture isn’t inert. It’s pretty ert. If it isn’t working for you, then it is probably working against you” ~ Virginia Valentine (founder of Semiotic Solutions)

Optional Reading (recommended) Is there an Indian Way of Thinking? An Informal Essay by A.K. Ramanujan indias-joerg-mueller-i-have-learnt-to-be-an-indian-in-some- ways/10482/1 indias-joerg-mueller-i-have-learnt-to-be-an-indian-in-some- ways/10482/1