Condition for Business to register multi-level sales activity.

Nowadays, with the rapid development of society, there are a numerous of businesses that exploit people’s mentality and multi-level sales is one of these. Multi-level sales is a form of sales that brings products directly to the customers without going through agents or stores. Because of this, you do not have to pay agents or rent shop space which will save you a lot of money. As a result, many multi-level sales organizations have been established recently. With this article, we will provide you some information about the conditions for an organization to be allowed to register multi-level sales activity.

Legal ground:

- Article 7 and 8 Decree No. 42/2014/ND -CP on management of multi-level sales activity.

Conditions consists of:

1. Being a company incorporated in Viet Nam according to Vietnamese Law and having a registered business line of multi-level sales retailing

2. Legal capital of  VND 10 billion

3. Good used for multi-level sales mode must be in accordance with the contents of  Enterprise Registration Certificate or Investment Certificate.

4. Meeting all business conditions or  being granted Certificate of eligibility for business according to Vietnamese Law in case enterprise doing business by selling conditional goods.

5. Escrowing in a commercial bank in Vietnam in accordance with Article 29 of this Decree .

6. Having  rules of operation, reward programs, basic training programs which are not contrary to provisions of  Law

7. Partners of a partnership, owner of a private enterprise, members of limited liability company, founding shareholders of  joint stock company, legal representative of limited liability company and joint stock company must be individuals who have never  held one of the above-mentioned positions at multi-level sale enterprises, whose multi-level sale registration certificates have been revoked according to provisions of Point b and Point c, Clause 1, Article 14 of this Decree.