> 5. Too Much Bureaucracy This is plain wrong today. As a person who started a company in Hyderabad, India, I know that the state governments of both IT Hubs o

> 5. Too Much Bureaucracy This is plain wrong today. As a person who started a company in Hyderabad, India, I know that the state governments of both IT Hubs of India(Hyderabad, Banglore) try very hard to be non-beurocratic. To register a pvt ltd company, I gave my CA, 25000 INR (~500USD). I never had to go to any govt office, they bought in some papers which I signed, and that was all it needed to get all required paperwork etc. My bank sent a representative to my office to open a bank account, and I didnt even have to go to my bank to open an account. Admiteddly all this took about 2 weeks, but I never felt it was bureaucratic. Anyway this point is moot if you are talking why no product companies, as this impacts any type of company equally.