From March 21, 2024, how much are fees for processing of application for the certificate of multi-level marketing in Vietnam?

From March 21, 2024, how much are fees for processing of application for the certificate of multi-level marketing in Vietnam?

On February 5, 2024, the Minister of Finance issued Circular 09/2024/TT-BTC stipulating fees for processing of application for the certificate of multi-level marketing, collection, transfer and management thereof takes effect from March 21, 2024, replacing Circular 156/2016/TT-BTC

According to Article 4 of Circular 09/2024/TT-BTC, the fees for processing of application for the certificate of multi-level marketing from March 21, 2024 is prescribed as follows:

- In case of new issuance or renewal of certificate of multi-level marketing: 5,000,000 VND/1 appraisal.

- In case of amending and supplementing the certificate of multi-level marketing: 3,000,000 VND/1 appraisal.

The fee for processing of application for the certificate of multi-level marketing will be organized by the Ministry of Industry and Trade or the state agency under the Ministry of Industry and Trade assigned to evaluate the application for the certificate of multi-level marketing in Vietnam.

From March 21, 2024, how much are fees for processing of application for the certificate of multi-level marketing in Vietnam? (Image from the Internet)

What is management and use of fees for processing of application for the certificate of multi-level marketing of fee-collecting organizations in Vietnam?

According to Article 6 of Circular 09/2024/TT-BTC, regulations on management and use of fees are as follows:

Management and use of fees

1. Fee collection organizations are allowed to set aside 90% of the collected fee amount to spend on appraisal and fee collection activities as prescribed in Clause 4, Article 1 of Decree No. 82/2023/ND-CP dated November 28, 2020. 2023 of the Government amending and supplementing a number of articles of Decree No. 120/2016/ND-CP dated August 23, 2016 of the Government detailing and guiding the implementation of a number of articles of the Law on Fees and Charges; Pay 10% of collected fees to the state budget according to the corresponding chapter and subsection of the State Budget Table of Contents.

2. In case the fee collection organization is a state agency that is not eligible to have operating costs from the fee collection source as prescribed in Clause 3, Article 1 of Decree No. 82/2023/ND-CP, pay all collected fees into the state budget. The source of costs to cover appraisal and fee collection activities is arranged by the state budget in the estimate of the fee collection organization according to the regime and state budget expenditure norms according to the provisions of law.

According to this Article, organizations with authority to collect fees for processing of application for the certificate of multi-level marketing from March 21, 2024 in Vietnam will have to manage and use the collected fees as follows:

- Deduct 90% of the collected fee amount to spend on appraisal and fee collection activities of the organization

- Pay 10% of collected fees to the state budget according to regulations

However, in cases where the fee collection organization is a state agency that is not eligible for operating costs from the fee collection source, it will have to pay the entire fee amount collected into the state budget in Vietnam.

What documents are included in application for multi-level marketing registration certificate in Vietnam?

According to Article 9 of Decree 40/2018/ND-CP amended and supplemented by Article 1 of Decree 18/2023/ND-CP, regulations on application for MLM registration certificate are as follows:

An application for the MLM registration certificate includes the following documents (which must bear the applicant's stamp):

1. The application form for the MLM registration certificate made according to the Form No. 01 in the Appendix enclosed herewith.

2. A copy of the certificate of company registration or other paper with the same value.

3. 01 list attached to the copy of personal legal documents (identity card or personal identity or passport of Vietnamese; passport and lawful residence document issued by Vietnam competent authorities for foreigners who have permanent residences in Vietnam; passports for foreigners who are Vietnam non-residents) of the persons mentioned in point c clause 1 Article 7 of this Decree.

01 copy of the legal document about establishment of the organization (in case the applicant is an organization.

4. 02 sets of documents concerning the applicant’s MLM activities, including:

a) The MLM contract form;

b) The compensation plan;

c) The basic training program;

d) The business rule.

5. The list of products sold through the MLM, including: Name, type, origin, packaging specifications, warranty (if any), selling price, point volume calculated based upon the selling price, and time of application.

6. The original of the bank’s confirmation of compulsory deposit.

7. Technical specifications towards information technology system to manage MLM networks under Article 44 of this Decree which contain the following basic information:

a) The IP address of the server and location of the physical server;

b) Operating mechanism of the system, including system description, method for entering, storing and managing data;

c) The information specified in Article 44 of this Decree.

8. Documents proving that the applicant’s website meets the requirements in Article 45 herein.

9. Documents proving the applicant’s communications system used for receiving and taking actions against complaints or queries of MLM participants.

10. Copy of the audited financial statement or document confirming fulfillment of tax obligations or financial obligations of the last 03 fiscal years, or equivalent document issued or certified by a competent agency or organization proving fulfillment of the conditions specified in Point h Clause 1 Article 7 of this Decree in case the enterprise's owners, members or shareholders are foreign investors or foreign-invested business organizations.

11. The business license that allows retail distribution, including retailing through MLM in case the enterprise's owners, members or shareholders are foreign investors or foreign-invested business organizations.

Best regards!