Fees for processing of applications for multi-level marketing registration certificates in Vietnam as of March 21, 2024

Fees for processing of applications for multi-level marketing registration certificates in Vietnam as of March 21, 2024 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On February 5, 2024, the Minister of Finance issued Circular 09/2024/TT-BTC stipulating the collection rates, collection, payment, management and use of fees for appraisal and issuance of operation registration certificates. multi-level marketing.

1. Fees for processing of applications for multi-level marketing registration certificates in Vietnam as of March 21, 2024

Fees for processing of applications for multi-level marketing (MLM) registration certificates are provided for as follows:

-. Regarding applications for issuance or renewal of multi-level marketing registration certificates: VND 5.000.000/application.

- Regarding applications for modification of multi-level marketing registration certificates: VND 3.000.000/application.

In there:

- Payers are enterprises that apply for multi-level marketing registration certificates.

- Collectors include the Ministry of Industry and Trade of Vietnam or regulatory authorities affiliated to the Ministry of Industry and Trade of Vietnam that are assigned to process applications for multi-level marketing registration certificates in accordance with regulations of law.

2. What are the regulations on the management and use of fees for processing of applications for multi-level marketing registration certificates in Vietnam?

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

- Each collector may retain 90% of total collected fees to cover its expenses incurred during application processing and fee collection as prescribed in clause 4 Article 1 of Decree 82/2023/ND-CP, and shall transfer the remaining amount equaling 10% of total collected fees to state budget according to corresponding chapter, section and sub-section in the list of state budget entries.

- The collector that is a regulatory authority ineligible for use of a pre-determined amount of collected fees to cover its operating expenses as prescribed in clause 3 Article 1 of Decree 82/2023/ND-CP must transfer total amount of collected fees to the state budget.

Expenses incurred during application processing and fee collection shall be covered by state budget-derived fund which is included in the collector’s cost estimate under policies and levels of state budget expenditures as per laws.

More details can be found in Circular 09/2024/TT-BTC, taking effect on March 21, 2024 and replacing Circular 156/2016/TT-BTC.

3. What does an application for MLM registration certificate include?

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

- The application form for the MLM registration certificate made according to the Form No. 01 in the Appendix enclosed with Decree 40/2018/ND-CP.

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

- 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 Decree 40/2018/ND-CP.

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

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

+ The MLM contract form;

+ The compensation plan;

+ The basic training program;

+ The business rule.

- 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.

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

- Technical specifications towards information technology system to manage MLM networks under Article 44 of Decree 40/2018/ND-CP which contain the following basic information:

+ The IP address of the server and location of the physical server;

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

+ The information specified in Article 44 of Decree 40/2018/ND-CP.

- Documents proving that the applicant’s website meets the requirements in Article 45 of Decree 40/2018/ND-CP.

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

-  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 Decree 40/2018/ND-CP in case the enterprise's owners, members or shareholders are foreign investors or foreign-invested business organizations.

- 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.

(Article 9 of Decree 40/2018/ND-CP, amended in Decree 18/2023/ND-CP)

Nguyen Ngoc Que Anh

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