A company or manufacturer or a
trading company who has some exclusive and unique products or services to
market and wants to tap worldwide customers without setting up expensive shops
and showrooms with little efforts and patience can start MLM Company.
Who can start a multi-level
marketing mlm company?
A company or manufacturer or a
trading company who has some exclusive and unique products or services to
market and wants to tap worldwide customers without setting up expensive shops
and showrooms with little efforts and patience can start MLM Company.
What is the law for setting up
Multi Level Marketing Company India?
There is no separate law for
setting up a Multi Level Network Marketing MLM Company in India till now it was
proposed in Indian Parliament 2005 but yet not became a law however there are
certain acts of India constitutions which we need to consider before setting up
Multi Level Marketing Company:
1. It should not be a only head count commission modal which falls
in Pyramid Scheme which is banned in India, covers MRTP Act alias Money
Rotation Trade Practice Banning ACT 1969.
2. It should not be only money involved investment return format
which falls in PCMC Act alias Prize Chit and Money Circulation banning Act
1978. It should be feasible Product selling Business Modal.
What is the best practice to
setup a Multi Level Marketing Company?
Firstly we recommend you to
setup a Private Limited or Limited Company to setup a Multi Level Marketing
Company in India which involved limited risk for directors who are setting up a
Multi Level Marketing Company Business.
Apply for IDSA (Indian DirectSelling Association) Member Ship. It’s not a government body but it’s a private
body setup by Amway India who is trying to govern the whole Direct Selling
Companies in India with their problem and to stop unethical and illegal MLM
companies and Multi Level Network marketing Business practice to operate and
destroy the MLM Business route.
Apply for Vat/Service Tax/ Tan
No and all necessary license and registration required for manufacture and
selling your product.
Appoint a Legal Advisor and a
Chartered Account to create rules and regulation forms, printing materials,
other company related legal documents and stationary materials. Please does not
cut copy paste other company’s print materials as it may not be applied on your
product or MLM Business modal? It is also advisable to develop exclusive
website content and information related to company written by legal advisor of
the company to counter legal laws of the Land.