MLM Registration Service in Vietnam

An MLM registration service provides comprehensive legal solutions. It helps enterprises meet the strict regulations for lawful multi-level marketing operations in Vietnam. Obtaining the MLM Registration Certificate requires compliance with conditions for charter capital, escrow deposits, personnel, and IT systems under Decree 40/2018/ND-CP. This article details the mandatory conditions and the application appraisal process at the Ministry of Industry and Trade. It also presents a professional support service to ensure an efficient and successful registration process for your business.

Conditions for an MLM Registration Certificate

The conditions for an MLM registration service are detailed in Article 7 of Decree 40/2018/ND-CP (amended by Decree 18/2023/ND-CP). The key requirements are:

• Legal Status and Charter Capital

  • The applicant must be an enterprise established in Vietnam under Vietnamese law.
  • The enterprise’s MLM registration certificate must have never been revoked.
  • A minimum charter capital of VND 10 billion is required. This capital level ensures the enterprise has the financial capacity for stable business operations.

• Management Personnel

  • Key individuals within the company cannot have previously held leadership positions in any MLM enterprise whose certificate was revoked. This applies to:
    • Partners in a partnership.
    • The owner of a private enterprise or a single-member limited liability company.
    • Members of a multi-member limited liability company.
    • Shareholders of a joint-stock company.
    • The legal representative of the enterprise.

• Escrow Deposit and Legal Documents

  • The enterprise must deposit an escrow fund at a commercial bank or a foreign bank branch in Vietnam. This is required by Clause 2, Article 50 of Decree 40/2018/ND-CP.
  • The enterprise must have a standard MLM participation contract, operational rules, a compensation plan, and a basic training program. These documents must be clear, transparent, and compliant with the Decree. A professional MLM registration service can assist in drafting these documents.

• Information Technology System

  • The enterprise must operate an IT system to manage its network of MLM participants.
  • An official company website is required to provide information about the enterprise and its MLM activities.
  • A communication system must be in place to receive and resolve inquiries and complaints from participants.

• Conditions for Foreign Investors

  • If the applicant is an enterprise with foreign investors or is owned by a foreign-invested economic organization, a special condition applies. All such foreign investors or organizations must have a minimum of 03 consecutive years of practical MLM operations in another country or territory.

To receive an MLM Registration Certificate, an enterprise must meet all stringent legal, financial, personnel, and IT requirements.

Process for Obtaining an MLM Registration Certificate

The application process is outlined in Article 10 of Decree 40/2018/ND-CP (amended by Decree 18/2023/ND-CP). It includes dossier submission, appraisal, and certificate issuance with specific timelines.

Phase 1: Dossier Submission

The enterprise submits one complete dossier as specified in Article 9 of Decree 40/2018/ND-CP. The dossier includes:

• Application form (Form No. 01 of Decree 40/2018/ND-CP).
• A copy of the Enterprise Registration Certificate.
• A list of relevant individuals with certified copies of their personal identification.
• Legal documents on the establishment of the organization (if any).
• Two sets of documents related to MLM activities.
• A list of products to be sold.
• An escrow deposit confirmation letter from the bank.
• A technical explanation of the IT system.
• Proof of an operating website and communication system.
• For enterprises with foreign investors: audited financial statements or tax fulfillment confirmations for the last three years, and a business license permitting retail distribution.

The Ministry of Industry and Trade (MOIT) will check the dossier’s completeness and validity within 05 working days. If the dossier is incomplete, the MOIT will issue a written notice for amendment. The enterprise has 30 days to amend the dossier, or the MOIT will return it.

Phase 2: Dossier Appraisal

• After receiving a complete dossier, the MOIT will notify the enterprise to pay the appraisal fee.
• The enterprise has 30 days to pay the fee, or the dossier will be returned.
• The MOIT will appraise the dossier within 20 working days of receiving the fee. This includes verifying the escrow deposit confirmation with the bank and reviewing all submitted documents.
• If the dossier does not meet the conditions, the MOIT will request amendments within a 30-day period.

Phase 3: Certificate Issuance

• If the dossier meets all conditions, the MOIT will issue the MLM Registration Certificate (Form No. 02 of Decree 40/2018/ND-CP).
• Within 10 working days of issuance, the MOIT will publish the certificate on its official website, notify the escrow bank, and distribute copies to provincial Departments of Industry and Trade.

>>> See more: Re-issuance of Certificate of registration of multi-level marketing activities.

MLM Registration Service by Long Phan Consulting Company

The MLM registration service at Long Phan Consulting Company is designed to guide enterprises through the entire legal process efficiently. Our service ensures strict compliance with current laws, saving clients time and resources.

Scope of the MLM Registration Service

The MLM registration service at Long Phan Consulting Company covers specialized areas to meet all client needs.

• Comprehensive Consultation

  • Long Phan Consulting Company provides complete guidance on the conditions for obtaining an MLM license.
  • We advise on building a compliant management system, operational rules, compensation plan, and training program.
  • We consult on the official registration procedure with competent authorities.
  • We review pre-prepared dossiers and recommend necessary amendments.
  • We advise on handling rejections or delays from authorities.

• Document Drafting Support

  • Long Phan Consulting Company reviews existing documents to prepare a compliant dossier.
  • We directly draft the application form, escrow documents, technical explanations, and company bylaws.
  • We also assist in drafting complaints, denunciations, or official explanations as required.

• Client Representation

  • Long Phan Consulting Company acts on behalf of clients to submit dossiers and work with authorities.
  • We receive the results, verify them, and deliver them to the client.
  • We provide guidance on understanding the contents of the license.
  • We monitor the dossier’s progress and provide regular updates.

Long Phan Consulting Company offers a comprehensive solution for MLM registration, from in-depth consultation to official representation.

Service Delivery Process

The MLM registration service at Long Phan Consulting Company follows a structured and transparent workflow:

• Phase 1: Initial Consultation. Long Phan Consulting Company receives the initial inquiry and gathers necessary information to provide a preliminary consultation, ensuring the client understands the process.
• Phase 2: Service Proposal and Quotation. We create a detailed service proposal and a transparent price quotation for each service item.
• Phase 3: Negotiation and Contract. We negotiate and sign a service contract with terms that protect the interests of both parties.
• Phase 4: Detailed Action Plan. After signing the contract, we develop a detailed project plan for the MLM registration process.
• Phase 5: Dossier Preparation and Submission. We guide the client in preparing documents, draft all necessary forms, and represent the client in submitting the dossier and monitoring its progress.

After-Service and Customer Care Policy

Long Phan Consulting Company provides professional after-service support. This policy helps clients adapt to legal changes and manage their MLM operations effectively.

• Regular communication to address operational issues.
• Periodic updates on new laws and policies affecting MLM activities.
• Ongoing legal consultation on matters like license renewal or network management.
• Support with procedures for terminating MLM operations if needed.

Information Security

At Long Phan Consulting Company, client confidentiality is a core principle.

• Our information management system uses multi-layered security and advanced encryption.
• All personnel sign non-disclosure agreements and are legally responsible for breaches.
• Access to client information is restricted to personnel directly handling the case.
• All data is stored on highly secure servers with regular backups.
• Our services strictly adhere to Vietnamese laws on personal data protection and business secrets.

Contact Information for the MLM Registration Service

Enterprises can contact Long Phan Consulting Company for our MLM registration service through various channels:

• Head Office Address: Lot TM7, Lavita Garden Apartment, 17 Street No. 3, Truong Tho Ward, Thu Duc City, Ho Chi Minh City
• Working Hours: Monday to Saturday – 8:00 AM to 5:30 PM
• Online Consultation Hotline: 1900.63.63.89
• Email: info@longphanpmt.com
• Website: longphanpmt.com
• Zalo: 0906.735.386
• Facebook: Long Phan Investment Consulting and Legal Services Co., Ltd.

Long Phan Consulting Company is a trusted partner for successfully navigating the MLM registration process.

Frequently Asked Questions about the MLM Registration Service

What is the mandatory escrow deposit for an MLM enterprise?

An enterprise must deposit an amount equal to 5% of its charter capital (but not less than VND 10 billion) at a commercial bank or foreign bank branch in Vietnam.

How long is the MLM Registration Certificate valid?

The certificate is valid for 05 years from the date of issuance. The enterprise must apply for renewal before expiration to continue its operations.

What acts are strictly prohibited in MLM activities?

The law prohibits requiring participants to pay a deposit to sign a contract, providing false information about benefits, operating a pyramid scheme, and failing to buy back goods from participants as required by law.

What are the basic rights of an MLM participant?

Participants have the right to a written contract, full information about products and compensation plans, free basic training, and the right to terminate the contract and have the company buy back purchased goods according to regulations.

What periodic reporting obligations does an enterprise have after licensing?

The enterprise must submit semi-annual and annual reports to the MOIT and the provincial Departments of Industry and Trade. These reports must include information on the network, revenue, and tax payments.

What must an enterprise do if it changes its compensation plan?

Any changes to the registered compensation plan, operational rules, or standard contract require the enterprise to complete the procedure for amending its MLM Registration Certificate with the MOIT.

Are there additional conditions for foreign-invested enterprises?

Besides the 03-year experience requirement, a foreign-invested enterprise must have an Investment Registration Certificate and a Business License that permits retail distribution, consistent with Vietnam’s international commitments.

Conclusion

A professional MLM registration service requires deep legal expertise to ensure an enterprise complies with all current regulations. The process is complex, from meeting the stringent conditions of Decree 40/2018/ND-CP to navigating the appraisal process at the Ministry of Industry and Trade. A professional consulting service is the key to ensuring success and sustainable growth.

→ Contact Long Phan Consulting Company’s sub-license service now at HOTLINE 1900.63.63.89 to receive the most comprehensive and effective consulting solution for your enterprise.