quesCan we run MLM company with proper product legally in India?

can we run MLM company with proper product legaly in india

  • ans

    This question has been answered by one of our lawyers. See answer below.

  • ansYes you can provided the product you are selling is legal and the manner in which you structure your operations does not breach Indian law, specifically Prize Chits & Money Circulation Scheme (Banning) Act, 1978. There are some companies in Telengana which are being prosecuted for using a MLM company to run an illegal money circulation scheme. Consult a lawyer and a CA since you need proper clarity on how will be raising an invoice and for what.

    Advocate Dhruv Suri

      Barakhamba Road, Delhi

  • ansYes one can run an MLM company in India however, there are no particular laws governing the same and the MLM structure needs to be carefully formulated otherwise it may attract provisions of Prize Chit Fund Act and Money Laundering Act. The same happened with Amway however, structures like tupperware and avon were clear of these acts. The product, its reach and the way of commission disbursal are key points.

    For any further inquiry you may contact us.

    Advocate Kanishk Agarwal

      East Patel Nagar, Delhi

  • Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Corporate Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or book a Detailed Consultation with a Lawyer of your choice to address your query in detail.
Consult best Corporate lawyers in India

Similar questions

I want to lodge a complaint against other two directors of a registered private limited…
Hi there ! My question is as follows: Normally, when we sign agreements in paper…
Is this standard as an indemnity agreement (I am an authorized signatory of the company)…
i was director in one company . when i was director we issued cheque to…

Corporate Lawyers in India

Advocate Dr.Gubbi S Subba Rao

  K G Road
 Experience: 31 years

Advocate Rajesh K.S

  Rajaji Nagar
 Experience: 11 years

Dr. Sudhir Ravindran

 Experience: 18 years

Advocate Ayantika Mondal

 Experience: 8 years

View all >>

How it Works

Know how LawRato makes legal advice easier and effortless

Ask a Free Question

Post a question and get free advice from multiple lawyers

Talk to a Lawyer

Easily find and book private consults with top lawyers in India

Get Fee Estimate

Receive multiple quotations for your legal requirement instantly