Direct sales licensing is a system of licensing direct selling companies by states to operate within the country. The process of obtaining a Direct Selling License in India is regulated by each State's Ministry of Industries, Ministry of Corporations, or Department of Legal Architecture, depending on the state. The requirement for obtaining a license to operate a direct selling business in India varies from state to state, but typically it is based on economic criteria such as the number of sellers, expected sales turnover, and size of the direct selling company.
The application for direct sales licensing in India must be made to the respective State Ministry of Industries, Ministry of Corporations, or Department of Legal Architecture, based on where the business is located. The applicants must also submit documentary evidence, such as a detailed business plan, financial statements, information on the direct selling products and services offered, and a list of the promoters or directors of the company. The application may also require the appointment of a legal representative who must be an advocate in the respective state or region. The application must contain a list of activities to be carried out by the company in India.
Once the application is approved, the company must pay the required registration fees and can receive a Certificate of Authenticity from the respective state and the registration number, which must be renewed every year. Companies must also abide by the rules and regulations of the respective state, as well as the ‘Direct Selling Guidelines’ issued by the Ministry of Consumer Affairs, which sets out the rights and responsibilities of the direct sellers. Moreover, the company must appoint a qualified and knowledgeable sales and distribution team to ensure timely deliveries of goods and services to customers.
Official Email ID: email@example.com
Address: Satra Plaza, Office No. 1007, Palm Beach Road, Sector -19D, Navi Mumbai, MH – 400703, India