04 steps for issuance of a MLM registration certificate in Vietnam

According to Article 10 of the Decree No. 40/2018/NĐ-CP of Vietnam’s Government providing the regulatory framework for multi-level marketing effective from May 02, 2020, 04 steps for issuance of a MLM registration certificate are specified as follows:

Step 1: Preparation of application

According to Article 9 of the Decree No. 40/2018/NĐ-CP of Vietnam’s Government, 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 with Decree No. 40/2018/NĐ-CP.

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

3. The list of 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the MLM company must have never held one of the said positions at a MLM company whose MLM registration certificate has been revoked in accordance with regulations of the Decree No. 42/2014/ND-CP dated May 14, 2014 and regulations of Decree No. 40/2018/NĐ-CP of Vietnam’s Government, enclosed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:

- The MLM contract form;

- The compensation plan;

- The basic training program;

- 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 of Decree No. 40/2018/NĐ-CP.

8. Documents proving that the applicant’s website meets the requirements in Article 45 of Decree No. 40/2018/NĐ-CP.

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

Step 2: Submission of application

The applicant shall submit an application, including the documents specified in Article 9 herein (enclosed with their files in ".doc" and ".xls" formats), to the Ministry of Industry and Trade (by hand or by post);

Within 05 working days from the receipt of the application, the Ministry of Industry and Trade shall check its adequacy and validity. If an application is insufficient or invalid, the Ministry of Industry and Trade shall request the applicant in writing to modify or supplement the application;

Note: Within 30 days from the receipt of the written request from the Ministry of Industry and Trade, if the applicant fails to modify or supplement the application as requested, the Ministry of Industry and Trade shall return the received application.

Upon the receipt of a sufficient and valid application, the Ministry of Industry and Trade shall notify the applicant of the application processing fees. The Ministry of Industry and Trade shall return the application if it does not receive the full payment of processing fees within 30 days from the notification date.

The Ministry of Industry and Trade shall process the application within 20 working days from the receipt of processing fees in full.

If the application fails to meet all of requirements herein, the Ministry of Industry and Trade shall request the applicant in writing to modify or supplement the application. The applicant may only supplement the application once within 30 days from the receipt of the written request from the Ministry of Industry and Trade. The Ministry of Industry and Trade shall consider the supplemented documents within 15 working days from the receipt of such documents.

Step 3: Processing of application

According to Clause 2 Article 10 of the Decree No. 40/2018/NĐ-CP of Vietnam’s Government, application processing steps are as follows:

- Obtain a written verification of the accuracy of the deposit confirmation from the bank where the applicant deposits money;

- Consider the conformity of the documents included in the application for the MLM registration certificate with regulations herein.

Step 4: Receive result

If the applicant fails to modify or supplement the application within the time limit or the application still fails to meet the requirements herein after it has been modified or supplemented, the Ministry of Industry and Trade shall give a written notification of application return which indicates reasons for return.

If the application meets all of requirements herein, the Ministry of Industry and Trade shall issue the MLM registration certificate using the form No. 02 in the Appendix enclosed herewith and return 01 set of documents specified in Clause 4 Article 9 of Decree No. 40/2018/NĐ-CP after being affixed the seal of the Ministry of Industry and Trade.

Particularly, within 10 working days from the issue of the MLM registration certificate, the Ministry of Industry and Trade shall publish information concerning the MLM activities on its website, notify the bank where the MLM company deposits money and provide the copy of the MLM registration certificate and copies of the documents specified in Clause 4 and Clause 5 Article 9 herein to Provincial Departments of Industry and Trade nationwide by one of the following modes:

- By post;

- By e-mail;

- Via the MLM management system of the Ministry of Industry and Trade.

Le Vy

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