Seen the Sylvester Stallone movie ‘Judge Dredd’?
It was one of those silly, comic-bookish super-hero movies about a bad-ass, no nonsense, gun slinging judge, set in the future, who goes around knocking off the bad guys.
The reason why we loved it was because it appealed to our ‘Black and White’ vision of the world. You know, the ‘Good Vs Bad’, the ‘Ugly Vs Pretty’ and the ‘Powerful Vs Meek’ mentality that has been drilled into 0ur heads. Though a very Catholic way of looking at the world, it has its place in every Religion and Ethinicity. And it helps keep order in this world.
And what else did we love about Judge Dredd, other than when he screams ‘I am the law!!!’ (Distended jaw and fearsome spit)?
We loved the fact that he was right, moral (though gunning down people or their cars can hardly be called that, but let’s move along), direct, honest and still won. Hands Down.
And we loved it as kids, many still do, it serves as a model (though flawed) of the kind of person we wish we could become. Unfortunately in the Real World, we must manage the law.
Before you go ahead and denounce me as the devil himself, I want to tell you something… Take a Hike.
This post if about Laws and not Morals. Don’t mix the two.
Laws are made by men and mostly powerful men who have always had self interest in mind.
Morals have a divine purpose. They must be followed.
God never invented the Tax Laws or ordained that bars must shut down by 11.30 on New Years (What-a-joke)
And men never made laws directing us to help old ladies cross the street.
This post if about Startups and the fact that they manage laws in India.
Examples?
Most Startups and Small businesses have started out with lots of ‘illegal’ history.
No. Not drugs and Human trafficking.
I mean many of the successful ones I know, have worked without paying VAT for atleast the first year.
Restaurant Owners have paid huge sums for licenses (12 in some places) to start off. Most never recover that money.
Black money, which comes at an affordable 1.5% interest rate per month, has been used as the seed capital for many small companies.
Millions of families subsist by running kirana stores selling stationary, groceries, clothes without a bill and only on cash. Hence pay no VAT (12.5% direct profit). Here I don’t mean the well-off Lalas. If you can afford to maintain a huge belly, you can afford to pay taxes.
Many small time street vendors (More entrepreneurial that many well funded startups) have to pay off cops just to earn a daily living.
College based startups don’t have any licenses, but still make it work. I haven’t seen college faculty insisting that startups get registered before they can sell their first product.
My Point?
India has loads of laws to follow. In most cases we become aware of them only when in deep shit. Many have been used to fork out money from law abiding citizens.
On close inspection of laws one will realise that this nation will see no real innovation or startup/small business activity if we zealously start following all laws. Following our laws will lead to most startups shutting shop before they can break even.
The laws are crazy. They are obstacles to entrepreneurial activities at best. At worst they are backed by fat babus in safari suits waiting to legislate us out of existence, if we don’t pay up.
They themselves are backed by the Economics of Corruption. More on that in a future post.
Once you get into the world of registrations, taxation, accountants, bankers, police, municipality, agreements, contracts, state laws and by-laws, you will really wish you had either married a Lawyer, been born in a family of Lawyers or had atleast dated one.
You get jacked and most can see a dream slipping past with the rapidity of a well oiled loo flush.
It’s primarily because of the above reasons that IT/ITes/BPO really mushroomed in our economy. In the 1990s the babus didn’t know what to tax and which licenses to make money out of.
So my point is. If it isn’t going against your basic morals and human decency, learn to manage the law.
And if you can’t handle it. Don’t give in.
Get a well paying job with good increments.
Cause you will still have to pay the extra ‘tip’ for your gas cylinder.