Direct Sales MLM License in Malaysia: Key Considerations and Legal Requirements – Part 1/3

Launching a Direct Sales (MLM) business in Malaysia is just the first step in a journey towards success. To truly make an impact, it is crucial to carefully select a unique and compelling product or service, devise a strong compensation plan, and assemble a skilled marketing team. By doing so, you can set your business up for long-term success and growth. You are advised to have a clear understanding of the Direct Sales and Anti-Pyramid Scheme Act 1993.

SECTION 4 (1) Direct Sales and Anti-Pyramid Scheme Act 1993
Subject to Section 14 and 42, no person shall carry on any direct sales business unless it is business incorporated under the Companies Act 1965 and holds a valid license granted Section 6

SECTION 2 Direct Sales and Anti-Pyramid Scheme Act 1993
“Direct Sales” means a door-to-door sale and mail order sale within the meaning of this Act.

“Door-to-door-sale” means the sale of goods or services conducted in following manner:-

• A person or any person authorized by him
• Goes from place to place not being a fixed place of business; or
• Makes telephone call.

Seeking our persons who may be prepared to enter, as purchaser, into contracts for the sales of goods or services; and

1. That first-mention person or some person then or subsequently enter into negotiations with whose prospective purchaser with a view to the making of such contracts.

“Mail Order Sale” means the sale of goods or services which a person conducts, either by himself of through any person authorized y him, receiving an offer for sale contract by mail.

Part 2 – Types of Marketing Plan under a Direct Sales Business