Eligibility requirements for multi-level marketing registration in Vietnam

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

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

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;

- 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the MLM company must have never held one of the said positions at a MLM company whose MLM registration certificate has been revoked in accordance with regulations of Decree 42/2014/ND-CP and Decree 40/2018/ND-CP.

- 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.

The applicant shall prepare an application for the MLM registration certificate as regulated in Article 9 of Decree 40/2018/ND-CP and be legally responsible for the legality, truthfulness and accuracy of the submitted application.

(Article 7 of Decree 40/2018/ND-CP)

2. Application for MLM registration certificate in Vietnam

An application for the MLM registration certificate in Vietnam 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 of Decree 40/2018/ND-CP.

Application form for the MLM registration certificate

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

- The list of persons mentioned in Point c Clause 1 Article 7 of Decree 40/2018/ND-CP, 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).

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

- 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.

(Article 9 of Decree 40/2018/ND-CP)

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