DIRECT SELLING LICENSE

In India, direct selling companies are required to obtain a license under the Direct Selling Guidelines, 2016.

The guidelines were issued by the Ministry of Consumer Affairs, Food, and Public Distribution to protect consumers from fraudulent activities and to promote ethical business practices in the direct selling industry.

To obtain a Direct Selling License, a company must submit an application to the Department of Consumer Affairs along with the following documents:

Certificate of incorporation

Memorandum and articles of association

PAN card of the company

Bank statement of the company

List of directors and shareholders

Details of products to be sold

Compensation plan

Sales and marketing plan

Code of Ethics

Training and support program for sales representatives

Once the application is submitted, the Department of Consumer Affairs will conduct a due diligence check on the company and its products. If everything is found to be in order, the license will be issued within 90 days of the application being submitted.