Eligibility requirements for multi-level marketing (MLM) registration in Vietnam

Eligibility requirements for multi-level marketing (MLM) registration in Vietnam (Internet image)

1. Eligibility requirements for multi-level marketing (MLM) registration in Vietnam

- An applicant for MLM registration in Vietnam is required to fulfill all of the following requirements:

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individuals who have held the same positions above of any MLM enterprises whose MLM registration certificate has been withdrawn according to Decree 42/2014/ND-CP and Decree 40/2018/ND-CP while such enterprises are performing MLM activities;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

+ 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.

- 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.

(Article 7 of Decree 40/2018/ND-CP, amended by Decree 18/2023/ND-CP)

2. What is the validity of MLM registration certificate in Vietnam?

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

- 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.

- 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.

(Article 8 of Decree 40/2018/ND-CP)

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