I read with interest the findings of Mr. Bhide . It is really true that new business Expenses are mainly Real estate . In Maharashtra it is 50% . This is because of MIDC and few Private Industrial Estates . But in India as a whole , new business requires to invest bulk of resources in real estate , because otherwise the financial institutes will not grant LOANS for business . One has to have own business place . I don't know regulations in USA or in other foreign countries . If any better method used , pl convey to indian finance institutes . We in India are wholly dependant on Govt and Banks . And Licence Raj is the greatest hurdles . To tackle this Licence Raj , lot of Cash Fund is required . If one do not spent his cash fund this way , it is not possible to get many clearances ; which are required before statrting any business in India . And present scenario is in India --- Many Businesses --- Shops , Factories ( SSI ) , Tiny Manufacturing units , Vendor shops are runnin g without any Licence . Where exchequre losses heavily in TAX . The state and Central . If more simplified methods are introduced , more business houses will be established and Tax Money will grow for Govt .