Eligibility requirements for multi-level marketing registration in Vietnam from June 20, 2023

Eligibility requirements for multi-level marketing (MLM) registration in Vietnam from June 20, 2023

The eligibility requirements for multi-level marketing (MLM) registration in Vietnam from June 20, 2023 include:

- 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individuals who have held the same positions above of any MLM enterprises whose MLM registration certificate has been withdrawn according to Decree 42/2014/ND-CP and Decree 40/2018/ND-CP while such enterprises are performing MLM activities;

- 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 Decree 40/2018/ND-CP;

- Its MLM contract forms, business rule, compensation plan and training programs must be available, obvious, transparent and conformable with 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 actions 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.

Decree 18/2023/ND-CP takes effect from June 20, 2023.

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