MLM (Multi-Level Marketing) company is a promotional marketing strategy in which a salesperson sells the services or products for a specific MLM business and recruits new sales promoters to further sales of services or products. The company salesman aims not only to sell the product but also to get more people to carry on and continue the chain of selling the product further.
The profits of the initial salesperson continuously grow as the chain grows. It is also known as network marketing, multi-level marketing, matrix marketing, etc. A manufacturer or a trading company with some unique and exclusive services or products to market and willing to tap worldwide customers without setting up expensive showrooms or shops can start an MLM company.
Documents Required to be Maintained by MLM Company
- Certificate issued by Registrar of Companies, MOA, Articles of Association and Management and Operations Memorandum (MOM).
- Copies of Director Identification Number (DIN) of directors, Taxpayer Identification Number (TIN), Permanent Account Number (PAN) and TAN
- Certificate of GST Registration and copies of GST Returns filed with the authority.
- Copies of the IT Returns of the company filed with the authority.
- Tax Deducted at Source (TDS) Statements of direct sellers and the respective challans paid.
- Copy of the latest profit and loss account, balance sheet and reports of the auditors.
- Records of the Know Your Direct Sellers (KYDS) and Know Your Customer (KYC) formats should be available on the company website.
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