Some points are worth noting:
Goods, products not allowed to trade by mode of multi level marketing:
Goods on the list of goods banned from circulation or the list of goods subject to restricted business; list of goods subject to provisional emergency measures, including distraint, prohibition on circulation or suspending from circulation under the law
Goods being medical equipments, veterinary drugs (including veterinary drugs for aquatic animals), plant protection drugs; insecticidal and germicidal chemicals and preparations for domestic and medical use; toxic chemicals and products containing toxic chemicals specified by law.
Conditions for multi level marketing operation:
a. Being established in Vietnam under the law; having Certificate of Business Registration showing the business line ofÂ Â retailing goods by mode of multi level marketing.
Having legal capital of 10 billion dongs
Goods trade by mode of multi level marketing is in accordance with those stipulated in Certificate of Business Registration thereof
Satisfying all business conditions or being granted certificates of satisfaction of business conditions as provided for by law in cases where they trade in goods on the list of goods subject to conditional business.
Having paid deposits equal to 5% of registered capital but not less than 5 billion dongs at a commercial bank in which head office of company is located.
Having operation rules, Reward programs, basic training programs that are not illegal under the law
Partnerships, owner of company limited, founder and shareholders of joint stock company, legal representative of company limited, of joint stock company must be individuals who had not hold stated positions above in multi level marketing companies whose certificate of multi level marketing operation are repealed under the Point b, point c, Item 1 of Article 14 in this Decree.
Certificate of registration for multi level marketing operation
Certificate of registration for multi level marketing operation is valid within 5 years from the issue date and could be renewed with 5 year extension of each renewal
Certificate of registration for multi level marketing operation is made in 2 original copies, 01 copy is provided for applicant and 01 copy is saved at competent authorized agency who issues the Certificate.
Ministry of Industry and Trade is competent to regulate the form of Certificate of registration for multi level marketing operation, dossiers, procedure for Certificate of registration for multi level marketing operation.
Revocation of the Certificate of registration for multi level marketing operation:
Certificate of Business Registration, Certificate of Investment are repealed or come to an end of valid;
Dossier for certificate issuance containing deceitful information;
Enterprise committed violations defined at Item 1, Article 5 of this Decree during operation of multi level marketing activities under the law
Enterprise does not carry out multi level activities within 12 months in series from the issue date of Certificate of registration for multi level marketing.
Enterprise does not satisfy full of business conditions stipulated in Article 7 of this Decree during multi levelmarketing operation.
Enterprise stop operation of multi level marketing for a period of more than 12 months in series.
Enterprise dissolves, bankrupt under the law.
Effect of the Decree:
– The Joint Circular comes in effect from the date of July 1st, 2014
– Certificate of registration for multi level marketing issued under the Decree No. 110/2005/ND-Cp dated on August 24th, 2005 on management on multi level activities shall be in valid until the Certificate of registration for multi level marketing is issued under this Decree but not longer than 06 months from the valid date of this Decree.