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Home Page > Business > Home Business > Legal MLM in India : What you should must know?
Legal MLM in India : What you should must know?
Posted: Oct 11, 2010 |Comments: 0
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Legal MLM in India : What you should must know?
About the Author
Mlm Training India: Providing Free Resource of Networking, So you can grow your business rapidly.
(ArticlesBase SC #3449616)
Article Source: http://www.articlesbase.com/ – Legal MLM in India : What you should must know?
Wonder tomorrow morning you are reading daily newspaper and you are stuck at a news which is detailing about that, how some Network Marketing companies were running fraudulent schemes & now these companies have been shut down. After reading the company name you realize that, the company which you have joined last week & sponsored few friends & family person is the same which is being shut down by the Govt. how would you feel?
There is no need to answer the question. So what should one do before joining any Network Marketing Company in India?
If you wants to join legal Network Marketing Company in India the this post will help you. There are some way through you can be sure about the legal part of the company.
1 The Prize Chits and Money Circulation Schemes [Banning Act 1976)
MLM business is governed byIndian Prizes and chits act. The company needs to obtain Reserve Bank of India Certification. Make sure you go through this site as many times as possible.
The Prize Chits and Money Circulation Schemes [Banning Act] 1978 [No. 43 of 1978]does clearly mention the basic guidelines (what not to do). The certificate from RBI is needed by MLM or non MLM companies from other companies wanting to open a bank account in India after clearance from FIPB (this does not apply for Indian companies).
Under section 13 of the act it states that the state government has to power to make rules. Hence to be on the safer side make sure the company offices in your territory have proper documents supporting this requisite.
2 Ministry of Corporate Affairs India
You can also check whether your network marketing company is a legal one registered in India.
1) visit Ministry of Corporate Affairs at http://www.mca.gov.in/DCAPortalWeb/
2) Look At left side bottom and click on Other services
3) Click the third category that is Check Company Name
4) Now type ” Ur Company Name ” and see !!!
3 Federation of Indian Chambers of Commerce and Industry:-
Check if you company is registered with FICCI
1) visit Federation of Indian Chambers of Commerce & Industry at www.Ficci.com
2) Look at left side & click on Membership
3) On the right hand-side second option Associate Members
4) Pdf will be opened now search for your Network Marketing Company
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