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How to Start MLM,guidelines for Network Marketing, direct selling Company?

Who can start a multi-level marketing direct selling company?

A company or The Makers of exclusive and unique products or services, aspirant to win worldwide customers without setting up expensive shops, showrooms and handling tedious advertising with little efforts and fortitude can go and make big out of it.

How to set up Multi Level Marketing, MLM Company India ?
Guidelines and Law for setting up direct selling mlm company
Best Practice to Setup a direct selling company
Guidelines for Kind of MLM Software,website

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) in India by now it was proposed in Indian Parliament in 2005 but not yet passed as a law, however there are certain acts of Indian constitutions which we need to consider before setting up Multi Level Marketing Company:

• It should not be a only head count commission Model which falls in Pyramid Scheme which is banned in India, covers MRTP Act alias Money Rotation Trade Practice Banning ACT 1969.
• 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 Model.

What is the best practice to setup a Multi Level Marketing Company?

Essentials of setting up a MLM ENTITY Private Limited or Limited Company is to be setup. In India Multi Level Marketing Company involves limited risk for directors who are setting up a Multi Level Marketing Company Business.

Pertain IDSA (Indian Direct Selling Association) Membership. It’s not a government body but it’s a private setup by Amway India and other big network marketing companies which is trying to govern the whole Direct Selling Companies in India which prevents unethical and illegal MLM companies and Multi Level Network marketing Business practices to operate and destroy the MLM Business route.

Apply for Vat/Service Tax/ Tan No and all necessary license and registration required for manufacturer and product seller.

Last but not the least Appoint a Legal Advisor, Consultant and a Chartered Accountant to create rules and regulation forms, manage paper works and other company related legal documents and stationary materials.

Please does not cut copy paste other company’s print materials as it may not be applicable on your product or MLM Business Model? It is also desirable to develop exclusive website content and information related to company written by legal advisor of the company to counter legal laws of the Land.

*** Note: Government of India Ministry of Corporate affairs issues guidelines for direct selling please follow the guidelines set by MCA.

  • Mr. Arun Aggarwal
  • Legal Expert, Consultant, Software Analyst
  • Address: B-2/272,273 First Floor Sector-6 Rohini, New Delhi-110085 (India).
  • For further information on
  • Phone/Whatsapp/Viber/ Wechat : +91 9811190082
  • skype: arun.vistaneotech, QQI id: 973620192