Conditions for registering for multi-level marketing activities

March 30, 2018 | 17:08

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The Government has issued Decree No. 40/2018/NĐ-CP on management of multi-level marketing activities.

An organization registering for multi-level marketing activitiesmust meet seven following conditions:

1 –It is an enterprise which is established in Viet Nam in line with its regulations and has not had multi-level marketing certificates withdrawn

2 – Charter capital worth more than VND10 billion

3 - Partnership members, for partnerships; private enterprise owners; members, for limited liability companies; founding shareholders, for joint stock companies; and at-law representatives, for limited liability and joint stock companies, must be those who have not held one of the above positions at a multi-level marketing business which has its multi-level marketing registration certificate under Decree No. 42/2014/NĐ-CP on management of multi-level marketing activities and this Decree.

4 - It opens an escrow account at a commercial bank or a branch of a foreign bank operating in Viet Nam

5 – It has rules of operation, bonus payment program and basic training program in accordance with the Decree.

6 – It has an information technology management system of participants, a website providing information about businesses and operation of its multi-level marketing activities

7 – It has a system to receive and address obstacles and denouncement of its participants

The enterprise must end its multi-level marketing activities in the following cases:

1 - The enterprise registration certificate is invalid and not extended,

2 – The enterprise itself ends multi-level marketing activities,

3 - The enterprise registration certificate is revoked by authorized agencies.

VGP

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