In which country, China (communist) or India (democratic) would you expect to encounter the most rules and the most bureaucracy when trying to do business?
Although you might expect that the communist country would have more rules and more bureaucracy, in reality, India is much more difficult in this sense. India is well-known for its very obstructive rules and red tape. For example, the Indian government recently tried to make it possible for foreign companies to own retail stores under some conditions. This proposal met with so much controversy that the government had to retract it.
The reason for this is that Indian governments must be responsive to their population. They cannot simply do what they think is best for the country the way that China can. Instead, they have to please the people, even if the people want things that are harmful to them.
In this way, it can actually be easier to do business in a communist country because the government can act without having to worry too much about the demands of the population.