Do not set up a legal entity in India. It will become a never-ending void where money and time go to die. The bureaucracy is hilariously inept and bloated, and if you are not willing to pay the bribes or for some entity to navigate the systemic corruption on your behalf, you will end up in OP's situation.
Source: hired many Indian developers in recent years for a SV startup
It's very easy to read these requirements and agree that there are natural resources that (a) you don't want exploited and (b) want preserved, so all of these hurdles are necessary. But the timeline involved and the MULTIPLE bribes really drives home the fact that reforms are needed.
Edit: sorry, one person openly asked for a bribe, the Panchayat. I would like to understand more about this. Do they just ask for an amount?
Baksheesh, whereby people expect a tip ahead of time if you want decent service, is quite common in India and is essentially another form of corruption, especially when practiced by police, bureaucrats, etc.
But accepting a gift to do your actual job, how could that be illegal, hmmmm?
In short it is a way to avoid getting caught.
Driving license is another. You'll see tens of touts in and around the govt office; you pay about INR 2-3K and get your drivers' license. Again, a tout/agent will handle it for you end to end.
Both are very well oiled machine; money goes all the way up to politicians. Getting a posting in those offices in turn requires millions of rupees of bribe, besides influence, caste angle etc.,
Speaking from personal experience.
* Trade license (renewable each year)
* Shops and establishment license Weights and measures calibration (needs to be done each year)
* To get electrical connection or to get additional capacity (Rs.100,000/KW in Bengaluru)
* Export / Import - at the ports to various officials no matter how clear your papers are
* Police clearance (for restaurants)
* Health inspector (from time to time)
* Food and Safety license (needs to be renewed periodically) Labour inspector etc
* Periodic visits from panchayat/municpality/police etc where they will demand money or take stuff for free or at huge discounts
India is a cesspit of corruption
The phone number of the constable who deployed the lock was written on the lock itself. So I called it. The constable and a sub-inspector promptly showed up within 15 minutes. They spoke very politely when I asked why I was the only one being fined. They were even apologetic as they were promptly issuing me a ticket for Rs.500. I had looked up the fine before they arrived and Rs.500 was correct. I paid the fine, they removed the lock and I drove away. They were deploying that lock on another vehicle on the same lane. No bribe whatsoever. Overall, I was surprised/delighted/dazed by the whole experience.
Also, political parties are mostly funded by bribery, and rely on literally buying the votes of villagers to maintain power. Any political entity with the power to actually tackle corruption would have little incentive to do so.
I am curious to know how the Stripe Atlas-like services from razorpay.com and clear.in have worked out for folks here in dealing with govt-facing work?