How much charter capital is required to register multi-level marketing in Vietnam?

1. How much charter capital is required to register multi-level marketing in Vietnam?

Pursuant to Article 7 of Decree 40/2018/ND-CP stipulating eligibility requirements for MLM registration as follows:

1. An applicant for MLM registration is required to fulfill all of the following requirements:

a) 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;

b) It must have at least VND 10 billion of charter capital;

c) The partners, if the MLM company is a partnership, the proprietor, if the MLM company is a private enterprise or a single-member limited liability company, the members, if the MLM company is a limited liability company of two or more members, the founders, if the MLM company is a joint-stock company, or the legal representative of the MLM company must have never held one of the said positions at a MLM company whose MLM registration certificate has been revoked in accordance with regulations of the Government's Decree No. 42/2014/ND-CP dated May 14, 2014 and regulations herein;

d) It must deposit money at a commercial bank or a branch of foreign bank locating in Vietnam as regulated in Clause 2 Article 50 of this Decree;

dd) Its MLM contract forms, business rule, compensation plan and training programs must be available, obvious, transparent and conformable with regulations herein;

e) 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;

g) It must develop a communications system to receive and take actions against complaints or queries of MLM participants.

2. The applicant shall prepare an application for the MLM registration certificate as regulated in Article 9 herein and be legally responsible for the legality, truthfulness and accuracy of the submitted application.

As such, an organization registering for multi-level marketing in Vietnam must be an enterprise that is registered for establishment and has at least VND 10 billion of charter capital, meeting the conditions specified above.

2. What is duration of MLM registration certificate in Vietnam?

According to Article 8 of Decree 40/2018/ND-CP stipulating MLM registration certificate as follows:

1. A MLM registration certificate shall be effective for 05 years from the date of issue.

2. The MLM registration certificate is made into 02 originals, among which 01 original is delivered to the applicant and the other is kept by the Ministry of Industry and Trade.

3. A MLM registration certificate includes the following contents: The name of MLM company; information concerning the Certificate of company registration/Certificate of investment registration (if any), including: company’s code, issuing authority, date of initial issue, date of the latest modification; head office’s address, telephone number, fax number, website and email address; information about the legal representative, including: full name, nationality, details of ID card/ citizen’s identity card/ passport, position, registered permanent residence/ temporary residence; scope of products sold through the MLM.

According to this Article, the MLM registration certificate shall be effective for 05 years from the date of issue in Vietnam.

3. What does application for MLM registration certificate in Vietnam comprise? 

Article 9 of Decree 40/2018/ND-CP stipulates that application for MLM registration certificate is 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. The list of persons mentioned in Point c Clause 1 Article 7 herein, enclosed with copies of their personal identity papers (ID card or citizen identity card or passport if that is a Vietnamese citizen; passport and certificate of registration of temporary residence issued by a Vietnamese authority if that is a foreigner permanently residing in Vietnam; passport if that is a foreigner who does not permanently reside in Vietnam).

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 documents concerning the information technology system used for managing participants as prescribed in Article 44 herein.

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.

Thus, the application for the MLM registration certificate will include the documents specified above in Vietnam.

Best Regards!