Monday 9 April 2018

How to set-up a new MLM business in India?



Well!! This is the first question arise in your mind if you are a beginner or unknown about the network marketing. In today’s world where competition in market is very strong, Multi-level Marketing is extremely imperative for your business. MLM business doesn’t require a fancy store or expensive showroom then also you can tap worldwide customers.

Network marketing is also known as pyramid selling, referral marketing  or network marketing it is a type of marketing strategy which is for the sale of products or services through non-salaried workforce also known as  promoters, participants, salespeople, and distributors. They get compensated on the basis of their sale not only for your personal effort but also for your recruiter’s effort. These recruits are referred as your sub-promoters or downline at multi-level. This MLM Business generates opportunity for people who are looking for part-time and flexible jobs.

Legal Formalities:
From legal point of view there is no separate law for the MLM Company in India once in 2005 it was proposed in the parliament but there are some Acts of Indian constitutions we have to consider before the Set-Up of a MLM Business.   

1.      Under Money Rotation Trade Practice Banning ACT 1969 Pyramid Scheme’s head count commission is banned in India.
2.      Under Prize Chit and Money Circulation banning Act 1978 it should be not money involved investment return it should feasible Product selling Business Format.

In order to setup a multi-level marketing Company in India firstly set-up a Private Limited or Limited Company this involved limited risk for owner.

Also apply for IDSA (Indian Direct Selling Association) Member Ship. It is a private association setup by Amway India. Membership in IDSA is important because this association govern entire Direct Selling Companies in India. They maintain the MLM Business rout by controlling unethical and illegal MLM companies. 

It is very important to have a Vat/Service Tax/ Tan No for selling, manufacturing and purchasing of the product and also all required license and registration.
Must hire a CA (Chartered Accountant) or legal advisor create your own company’s rules, regulation and policy without copy past of others. It is also very important to create your online presence with the help of a dynamic website, unique content and related company information provided by legal advisor. 

Business Plan: You must have a business plan or a blue print of your business. It is a base of any business to come up with required or unique goods and services in market in order to sell it.

Realities of MLMs: Be aware about the realities of pyramid schemes and MLM scams for the safe business. Keep up to date yourself with the knowledge of direct selling market and continue with the market research.

Choosing MLM Plan: Final, tough and most important part for the business. Selecting a MLM plan decide your business future because MLM plan work as backbone of your business and it should be strong in order to long chase. 


Omega Softwares is the provider of custom MLM software development solutions for businesses worldwide. Consult our software solutions specialists now to discuss how our development services will enable you to overcome your software technology challenges.info@omega-sys.com

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