Conditions for registering for multi-level marketing activities

The Government has issued Decree No. 40/2018/NĐ-CP on management of multi-level marketing activities.

An organization registering for multi-level marketing activitiesmust meet seven following conditions:

1 –It is an enterprise which is established in Viet Nam in line with its regulations and has not had multi-level marketing certificates withdrawn

2 – Charter capital worth more than VND10 billion

3 – Partnership members, for partnerships; private enterprise owners; members, for limited liability companies; founding shareholders, for joint stock companies; and at-law representatives, for limited liability and joint stock companies, must be those who have not held one of the above positions at a multi-level marketing business which has its multi-level marketing registration certificate under Decree No. 42/2014/NĐ-CP on management of multi-level marketing activities and this Decree.

4 – It opens an escrow account at a commercial bank or a branch of a foreign bank operating in Viet Nam

5 – It has rules of operation, bonus payment program and basic training program in accordance with the Decree.

6 – It has an information technology management system of participants, a website providing information about businesses and operation of its multi-level marketing activities

7 – It has a system to receive and address obstacles and denouncement of its participants

 

The enterprise must end its multi-level marketing activities in the following cases:

1 – The enterprise registration certificate is invalid and not extended,

2 – The enterprise itself ends multi-level marketing activities,

3 – The enterprise registration certificate is revoked by authorized agencies.

 

Source:
Conditions for registering for multi-level marketing activities

About the author  ⁄ AmCham Vietnam

AmCham is an independent association of companies with the objective of promoting trade and investment between Vietnam and the U.S. With two chapters, one in Ho Chi Minh City and one in Hanoi, our membership of 700 companies and 1,500 representatives is unified by a commitment to promote trade and investment between Vietnam and the United States.

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