Vietnam: What are the procedures for issuance of a MLM registration certificate under the current regulations?
What are the procedures for issuance of a MLM registration certificate in Vietnam?
Pursuant to subsection 1 Section A of the administrative procedures promulgated together with Decision 1299/QD-BCT in 2023, the procedures for issuance of a MLM registration certificate in Vietnam are carried out as follows:
Step 1: The applicant shall submit 01 application enclosed with electronic copies in ".doc" or ".docx" format for documents specified in Clause 4 Article 9 of Decree 40/2018/ND-CP and ".xls" or ".xlsx" format for documents specified in Clause 5 Article 9 of Decree 40/2018/ND-CP to the National Competition Committee of Vietnam under the Ministry of Industry and Trade (5th floor, No. 25 Ngo Quyen - Hoan Kiem, Hanoi);
Step 2: Receive the application and check the completeness and validity of the application:
Within 05 working days from the date of receipt of the application, the National Competition Commission of Vietnam shall receive and check the completeness and validity of the application.
- In case the application is incomplete and valid, the National Competition Commission of Vietnam shall notify the applicant to amend and supplement the application within 30 days.
- In case the application is complete and valid, the National Competition Commission of Vietnam shall conduct the appraisal.
- In case the applicant fails to amend or supplement the application as required within 30 days from the date on which the National Competition Commission of Vietnam issues a written notice of amendment or supplementation of the application, the National Competition Commission of Vietnam shall return the application to the applicant.
Step 3: Appraise the application:
After receiving a complete and valid application, the National Competition Commission of Vietnam notifies the applicant to pay the appraisal fee, the National Competition Commission of Vietnam returns the application if the applicant fails to pay the appraisal fee within 30 days from the date of issuance of the notice
The National Competition Commission of Vietnam shall appraise the application within 20 working days from the date of receipt of the appraisal fee.
In case the application does not meet the requirements, the National Competition Commission of Vietnam shall notify in writing for the applicant to supplement the application 1 time within 30 days from the date of issuance of the notice. The time limit for appraisal of the amended and supplemented application is 15 working days from the date on which the National Competition Commission of Vietnam receives the amended and supplemented application.
Step 4:
- Return the application: In case the applicant fails to amend or supplement the application within the prescribed time limit or the application does not meet the requirements specified in Decree 40/2018/ND-CP after being amended or supplemented, the National Competition Commission of Vietnam shall return the application in writing, stating the reasons;
- Within 10 working days from the date of issuance of the MLM registration certificate, the National Competition Commission of Vietnam shall publish on the website of the National Competition Commission of Vietnam, notify the bank where the applicant deposits and provide a copy of the MLM registration certificate together with the copies of documents specified in Clauses 4 and 5, Article 9 of Decree 40/2018/ND-CP to Departments of Industry and Trade nationwide by one of the following methods:
- Send via postal service;
- Via email;
- Information technology system for multi-level marketing management of the National Competition Commission of Vietnam.
What are the requirements for issuance of a MLM registration certificate in Vietnam?
Pursuant to Subsection 1 Section A of the Administrative Procedures promulgated together with Decision 1299/QD-BCT in 2023, an applicant for MLM registration is required to fulfill all of the following requirements:
- It must be an enterprise that is duly established under the laws of Vietnam in the territory of Vietnam and has never had a MLM registration certificate revoked;
- It must have at least VND 10 billion of charter capital;
- Partners of partnerships, owners of sole proprietorships or single-member limited liability companies, members of multiple-member limited liability companies, shareholders of joint stock companies, and legal representatives of companies must not include organizations or individuals who have held the same positions above of any MLM enterprises whose MLM registration certificate has been withdrawn according to Decree No. 42/2014/ND-CP dated May 14, 2014 of Government on management MLM activities and this Decree while such enterprises are performing MLM activities;
- It must deposit money at a commercial bank or a branch of foreign bank located in Vietnam as regulated in Clause 2 Article 50 of Decree 40/2018/ND-CP;
- Its MLM contract forms, business rule, compensation plan and training programs must be available, obvious, transparent and conformable with the regulations herein;
- It must develop an information technology system to manage participants in the MLM and a website to provide information about its profiles and MLM activities;
- It must develop a communications system to receive and take action against complaints or queries of MLM participants.
- In case the registering organization is an enterprise whose owners or members or shareholders are foreign investors or foreign-invested business organizations, all of these foreign investors or foreign-invested business organizations need to have at least 03 years of continuous operation of MLM business in a certain country or territory.
What is the fee for issuance of a MLM registration certificate in Vietnam?
Pursuant to Subsection 1 Section A of the Administrative Procedures promulgated together with Decision 1299/QD-BCT in 2023, the fee for issuance of a MLM registration certificate is VND 5 million.
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