MLM Registration

Multi-Level Marketing (MLM), also known as network marketing or direct selling, is a business model where sales representatives earn income both through direct product sales and by recruiting new distributors. With increasing regulation in India, it is essential that MLM businesses comply with the Consumer Protection (Direct Selling) Rules, 2021 and other applicable laws.

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Benefits of MLM Registration

Legal Recognition: Operate your MLM business under a proper legal structure such as a Private Limited Company or LLP.
Compliant with Government Guidelines: Structured as per Direct Selling Guidelines issued by the Ministry of Consumer Affairs.
Trust & Credibility: Builds trust among consumers and distributors with legal backing and documented policies.
Easy Business Expansion: Ready for pan-India operations with a legally recognized entity.
Systematic Commission Model: Legal framework to implement referral and bonus structures.

Ideal For

Entrepreneurs launching a direct selling brand
Health, wellness, cosmetic, and personal care product sellers
Companies entering the affiliate marketing or referral model
Network marketing businesses seeking legal compliance
Startups planning structured MLM models under strict regulatory norms

Registration Process

Business Structure Setup
Incorporation of the business entity (typically a Private Limited Company or LLP).
Document Drafting
Preparation of key policy documents: income plan, refund policy, product catalogue, etc.
Website and Digital Infrastructure
Review of web presence and integration with secure distributor login and disclosures.
Compliance with Direct Selling Rules
Aligning the compensation plan, return/refund policies, and distributor agreements with Direct Selling Rules, 2021.
Trademark and Legal Advisory
Trademark registration for brand protection, and legal vetting of terms & conditions.
Ongoing Support
Compliance filings, commission management system setup, and tax/GST advisory.

Documents Required

PAN and Aadhaar of directors/partners
Passport-size photographs
Registered office proof (utility bill + rent agreement or NOC)
Digital signature certificates (DSC)
MOA and AOA or LLP agreement
Draft MLM plan and compensation structure
Terms & Conditions, Privacy Policy, and Return Policy documents
Website screenshots and domain registration proof

What You’ll Get

Certificate of Incorporation
PAN & TAN
GST Registration
Drafted MLM Plan & Policy Documents
Legal compliance checklist (Direct Selling Rules)
Advisory on commissions, refunds, and consumer protection

Frequently Asked Questions

Have a look at the answers to the most asked questions

Is MLM legal in India?

Yes, MLM is legal if it complies with the Consumer Protection (Direct Selling) Rules, 2021 and does not operate as a money circulation or pyramid scheme.

Which business structure is best for MLM?

A Private Limited Company is preferred due to credibility, scalability, and investor-friendliness.

Are there any restrictions on commissions or bonuses?

Yes. Commissions must be based on actual sales, not merely recruitment. The compensation structure must comply with Direct Selling norms.

Is website compliance mandatory?

Yes. A transparent and compliant website with full product, return, and compensation details is essential under the rules.

Can SRV Taxcon help with ongoing compliance?

Absolutely. We offer full legal, financial, and tax compliance support for MLM companies, including annual filings, GST, and legal audits.