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In Malaysia, companies that engage in direct selling activities are required to have a Direct Sales License. Direct selling activities refer to the sale of goods or services directly to consumers without the need for a physical retail store or outlet. Examples of such activities include door-to-door sales, telemarketing, and sales from place to place that are not a fixed place of business. The Direct Sales License ensures that companies that engage in direct selling activities are operating within the guidelines set by the government.
To apply for a Direct Sales License in Malaysia, companies need to provide various documents to the Ministry of Domestic Trade, such as their registration information,
1. Paid-up Capital,
Category | Not 100% Bumiputra | 100% Bumiputra | Foreign Ownership |
---|---|---|---|
Multi-Level Marketing | RM 1,500,000 | RM 500,000 | RM 5,000,000 |
Single-Level Marketing | RM 500,000 | RM 100,000 | RM 5,000,000 |
Mail Order Sales | RM 500,000 | RM 100,000 | RM 5,000,000 |
2. To have at least 5 products/services with costing and pricing,
3. Description of the Compensation Plan in accordance with Direct Sales and Anti-Pyramid Scheme.
In addition, it’s essential for companies to comply with all relevant laws and regulations, including 10 Days Cooling off Period, Buy Back Policy and those related to consumer protection, data privacy, and marketing practices. These regulations aim to protect consumers’ rights and interests and ensure that companies conduct their business fairly and transparently. Failure to comply with these regulations can result in penalties or legal action against the company.
It is recommended to consult with our advisor whom specialized in Direct Sales MLM License for specific legal advice for your business.