Can we run MLM company with proper product legally in India?
can we run MLM company with proper product legaly in india
Yes 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 SuriBarakhamba Road, Delhi
Yes 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 AgarwalEast 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.
Get Started >>
Answers by Our Lawyers
- What can a girl do if mistreated by in laws
- Brought land together but registered in my aunt's name only
- What is the procedure of sending out summons for pending cases
- Two different business models with the same name
- Joint property sold without my consent what is the legal remedy?