Laws for setting up direct selling company in india

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, Government of India's Consumer Affairs Ministry gazzated guidelines for direct selling companies 2016 named "DSG2016" and there are certain acts of Indian constitutions which we need to consider before setting up Multi-Level Marketing Company:

  • It should not be an only headcount commission Model which falls in Pyramid Scheme which is banned in India, covers the 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.

To understand the basics and difference between banned and illegal pyramid scheme and direct selling business you need an experienced direct selling consultant and direct selling legal advisor

  • Mr. Arun Aggarwal
  • Direct Selling Consultant and Legal Advisor
  • Address: 517, Jaina Tower 1, Janak Puri District Center, New Delhi 110058.
  • For further information on info@vistaneotech.com
  • Phone/Whatsapp: +91 9811190082
  • skype: arun.vistaneotech