Legal Question in Business Law in India

Yes, the ministry is viewing multilevel marketing with suspicion. Companies such as Amway, Tupperware, have already expressed their concerns of lack of clarity in the policy.

Currently, companies carrying out multilevel marketing may be subject to non-compliance or need to regularise, once there is some clarity. It may be appropriate for a new company, having foreign investment, to seek prior clarification. You may get in touch with us for legal advice at [email protected] or call at +919873385524.

Such a ban would be violative of article 19 (1) g of the Constitution of India. Go ahead with the company formation and in case such a ban is imposed then at that time challenge it under Article 226 of the Constitution of India. However Multilevel marketing is a very popular concept worldwide and such a ban would not be sustained. To know us better, please click on the links below:

http://www.linkedin.com/pub/rajiv-chandhok/33/7b7/82

http://www.lawguru.com/answers/atty_profile/view_attorney_profile/username#more_info

You may also drop a detailed query at [email protected]

JSR/81013

14.10.2013

Dear Sir / Madam,

YES, the Government is coming out with a set of directives to regulate the formation and operation of multi-level marketing Companies in India.

Regards,