Certificate of registration of multi-level marketing
01. Conditions for application
If a company would like to do multi-level marketing, the company must obtain a certificate of registration of multi-level marketing ("MLM"). The company must also ensure the minimum charter capital of VND 10 billion and have an escrow deposit of 5 percent of its charter capital but the deposit must be at least VND 10 billion.
02. Applicable laws
Decree No. 40/2018/NĐ-CP
Step 1: Prepare a set of hard applications and a set of electronic applications formatted as ‘.doc’ or ‘.xls’ data
1. The application form for the MLM registration certificate
2. A copy of the certificate of company registration or other paper with the same value.
3. The list of owners/legal representatives enclosed with copies of their personal identity papers (ID card or citizen identity card or passport if that is a Vietnamese citizen; passport and certificate of registration of temporary residence issued by a Vietnamese authority if that is a foreigner permanently residing in Vietnam; passport if that is a foreigner who does not permanently reside in Vietnam).
4. 02 sets of documents concerning the applicant’s MLM activities, including:
a) The MLM contract form;
b) The compensation plan;
c) The basic training program;
d) The business rule.
5. The list of products sold through the MLM, including: Name, type, origin, packaging specifications, warranty (if any), selling price, point volume calculated based upon the selling price, and time of application.
6. The original of the bank’s confirmation of compulsory deposit.
7. Technical documents concerning the information technology system used for managing participants
8. Documents proving that the applicant’s website meets the regulatory requirements
9. Documents proving the applicant’s communications system used for receiving and taking actions against complaints or queries of MLM participants.
Step 2: Submit the file to the Ministry of Trading and Industry
Step 3: The Ministry shall, within 05 working days from the date of receipt the file, examine the validity of the file.
Step 4: If the file is required to be amended or supplemented, the Ministry shall, within 30 days from the date of notification of the amendment, supplementation, send a document to the applicant for such amendment, supplementation.
Step 5: If the file is valid, the Ministry shall notify the applicant to pay assessment fee. The applicant must pay the assessment fee within 30 days from the date of notification of the Ministry. The Ministry shall return the file and specify the reasons for return if the applicant does not pay the fee on time.
Step 6: The Ministry shall, within 20 working days from the date of receipt of assessment fee, assess the file.
Step 7: If the file does not satisfy regulatory requirements, the Ministry shall request the applicant to supplement, amend the file. The applicant can only amend, supplement the file 01 time within 30 days from the date of notification. If the applicant does not supplement, amend the file within such period of time, the Ministry shall return the file and specify the reasons for.
Step 8: If the file, after assessment, is supplemented, amended, the Ministry shall assess the file within 15 days from the date of receipt of the file.
Step 9: If the file satisfies regulatory requirements, the Ministry shall issue a certificate of multi-level marketing and return a set of documents with stamp of the Ministry, including the contract template of multi-level marketing, compensation plan, training program and operation rules.