How to Start MLM Company in India?

MLM business is the most popular trend in the Indian business sector these days. MLM Business is also known al direct selling company. It is one of most popular and emerging business sector of retail market. The Direct selling business sector in India is a land of opportunities for entrepreneurs. Since this sector is growing so rapidly, having your own MLM company in India (Direct Selling Company in India) will lead you to the brightest future. If you start your MLM business by following the right steps, you will be able to earn a huge profit from it. But since this business is totally different from others, normal business guidelines won’t work here. You need to be aware of all legalities, must have a strong MLM business plan and an expert team of professionals to launch a successful MLM company in India.

Are you a newcomer in the MLM industry and looking for the best guidelines to start your company? This blog will be your best guide to launching a prosperous MLM company in India. We created this blog to help all the newcomers to create a flourishing Direct selling company or Network marketing model without any hassle. Here we will inform you about all the essential steps required for starting your own direct selling in India, from registering your company legally to making a good plan and finding the best MLM software for your business. Stay tuned with us to learn how to launch your own MLM company in India like a pro!

What is MLM Business?

Before starting your MLM company in India, you need to have a better understanding of what an MLM business is actually.

MLM or multi-level marketing, also called network marketing business a lucrative business strategy where entrepreneurs can earn revenue by selling products or services and also recruit more people under them to do the same work. In this business, all the distributors can work independently and have the choice to set the hours of working as per their schedule. Now you may wonder why this business is more profitable than any other business in India. Let us tell you the reason.

As an entrepreneur of an MLM company in India, you can earn a double income. Sounds weird, right? But it’s true. You can earn directly by selling products to your customers and also get a commission from the income of all the participants under you. The existing downline members can continue recruiting more new distributors to the team to make the business a large one, and in this way, more revenue can come to the business.

Pros and Cons of MLM Business

Every business strategy has both some advantages and drawbacks, and the MLM company is not exceptional in this. It too has lots of amazing advantages and also a few disadvantages. For establishing a successful MLM company in India, you need to be aware of both the pros and cons that we have mentioned below.

Pros of MLM Business

There are lots of benefits and Advantages of MLM business for which people are running to this business now. Here are some pros of running an MLM company in India.

1. Minimal Risk Factor
2. Huge Income
3. No Inventory Required
4. Flexible Timing
5. Lower Operating Costs
6. Remote Working Possibility
7. Less Investment Required
8. International Growth Potential
9. Minimal Sales Expenses
10. No Need to Hire Employees

Cons of MLM Business

Learning only the benefits of MLM business is never enough. Whether you are a newcomer or already a successful MLM business entrepreneur, you should never overlook the negative sides of MLM business if you don’t want to face any loss in your business. Have a look at the few drawbacks of MLM business.

1. Slow Growth
2. Takes Time to Build Trust
3. No Guaranteed Income
4. Limited Control
5. Chances of Fraud
6. Higher Turn-over Rates
7. Huge Pressure of Selling and Recruiting

How to Register Network Marketing (Direct Selling) Company in India

The registration of a network marketing company in India is simple but quite different from traditional business registrations. You just need to follow some steps carefully to complete the registration of your own MLM company in India. We have mentioned the registration steps below for your ease.

1. Apply for IDSA

If you are planning to make a start-up MLM company in India, first, create a private limited company.  To register your private MLM company in India legally, now you have to apply for IDSA( Indian Direct Selling Association) membership. IDSA is not a government company but a private organization that represents the Indian direct selling industry.

If you have the IDSA membership, it will be helpful for you to solve any kind of problem in your MLM business as IDSA has been solving all the issues of direct selling companies for years. But remember if your company is a fraud one, IDSA will ban your illegal company forever. You can’t ignore this very crucial step when launching your MLM business in India.

2. Apply for Service Tax Registration

You cannot start your MLM company in India without service tax registration because the Indian government has made a rule of tax deduction from every business after a limited income rate set by the Government. If you don’t want to give any penalty to the Government, must apply for service tax registrations like GST registrations if your annual income exceeds the limit set by the Government. You also need to apply for TAN and PAN numbers.

You can apply for these numbers online. It may seem that applying for service tax registration is an extremely hard, confusing and time-consuming task. But you just need to submit some necessary documents to get the tax registration, TAN and PAN numbers. And the most important part you need to during registering your company is to share all the details of your company profile and give a list of all the products you want to sell to the Indian Government to get approval for business registration.

3. Maintain All the Necessary Documents

To register an MLM company in India, it is crucial to have some important documents with you. The first important document both small and large MLM companies need to keep always is the company registration certificate. You need to submit the certificate of GST registration as a legal proof along with the copies of GST returns to the Government. So, you have to keep the GST registration certificate and GST return Xerox copies with you.

PAN card is another most important document you must have with you as an MLM business entrepreneur. In your MLM business website, you have to add the records of Know Your Direct Sellers( KYDS) and Know Your Customer formats( KYC) as well. Certificates you will get from the Management and Operations Memorandum( MOM) and Registrar of Companies( ROC) are the vital elements in the registration of MLM companies in India. You may also require the TDS statements of direct sellers of your company. If you have all these legal and important documents with you, it will not be so challenging for you to start a legal network marketing business in India.

How to Make Legal MLM Company in India?

Launching an MLM company in India and keeping all the important documents is not the end. You have to make your MLM business legal in India to start selling and gaining the trust of customers. Since the number of fraud and illegal MLM companies is rising these days in India, the Indian Government has set some guidelines to regulate product selling and these guidelines are called ‘’Direct Selling Guidelines’’. To establish your network marketing company in India as a legal one, you have to strictly follow all the government guidelines.

Following the guidelines will help you get the approval for your MLM business from the Indian Government. If you don’t follow any of them, the Government may consider your business as an illegal one. So, following each and every rule of Government is the only way to ensure the legality of your MLM business. Visit Ministry of corporate affairs – Incorporation to learn about all the Government guidelines for direct selling in detail.

Is Multi-level Marketing Business Legal in India?

MLM or multi-level marketing is a very easy way to earn huge income. Though it is an extremely lucrative business idea, people always wonder whether starting an MLM business in India is legal or not before launching their company. And the answer is yes, MLM is legal in India but with some conditions. Your MLM company in India is completely legal if it is not an unauthorized pyramid scheme business. There are more things on which the legality of a MLM business depends.

As an MLM business owner, if you have all the legal documentation, maintain all the Government guidelines, always focus on product selling more than recruiting more distributors, and don’t make any unrealistic income promise, your company is considered as a 100% legal MLM company. If you violate any of these rules, your MLM company will be marked as an illegal business in India forever. To know more about the legality of MLM business in India, click on

Make A Good MLM Plan for Your Business

Running an MLM company in India is profitable enough but only when you follow the right path and have the best MLM plan as per your company’s requirements and your goals. In the network marketing industry, there are unlimited MLM plans waiting for you. And some of the most popular plans among them right now in the market are Binary MLM plan, Matrix MLM plan, Single Leg MLM Plan, Unilevel MLM plan, Repurchase MLM plan, Gift MLM plan, Board MLM plan, Investment MLM plan, Crypto MLM plan etc. Choosing any plan randomly without research may result in getting the wrong plan that is not suitable for your business. And a wrong MLM plan will lead to financial downfall.

Freshers often wonder how to set up the best MLM plan for their business. You need to consider some key factors while choosing a suitable MLM plan for your business. Figuring out your business goals, knowing the exact needs of your company, comparing the pros and cons of different MLM plan structures, comparing the compensation plans, researching different MLM plan companies, checking the latest market trends and knowing your competitors, can definitely help you to create the right MLM plan for your MLM company in India.

Find the Best MLM Software for Your MLM Business

In this modern era of advanced technology, managing your entire MLM business manually is just a waste of time. There are lots of difficult business tasks you need to handle as an MLM business owner. If you do them manually, those tasks will become tricky and time-consuming and there will be a high possibility of human errors. So, it will be better to find an efficient MLM software before launching a new MLM company in India.

And the real challenge is to quickly find the best MLM software from the plenty of MLM software offered by several MLM software companies in India. You can contact a trusted MLM software development company in India like DNG Web Developer to get the best and most reliable software at a reasonable cost. But there are some more things you can do to find out the best MLM software for your company.

You can check the features of the software offered by the company, ask for a demo, compare the pricing of the software from different companies, check the MLM software’s scalability, and go through the customer review to know the reliability of the software offered by a particular company and some more. Integrate the best MLM software in your business to speed up the growth and success of your MLM business.

Find Good MLM Leaders in India for Network Marketing Business

No matter how advanced software and unique strategy you are using in your network marketing business, you can’t get the best results without efficient MLM leaders. The success of an MLM company in India depends a lot on good MLM leaders. A team of skilled and hardworking leaders can increase the sales by using MLM software in an MLM business and elevate the growth of the business.

Good MLM leaders also play a vital role in encouraging more people to join your MLM business. Since there are lots of MLM business leaders in India, it will take some time to find the best among them. But never add random leaders to your MLM team. Here are some best features of a good MLM business leader. Make sure that your leaders have all these features or potential in them.

1. Efficient in Conversation
2. Ability to attract customers by words
3. Inspiring and Motivational
4. Dedicated to Work
5. Hard-working and Honest
6. Ability to Train and Lead New Joiners
7. Team-oriented Mindset
8. Skilled in Product Sale
9. Ability to Learn New Things Quickly

Remember that MLM leaders are the key to the success of an MLM business. With the best MLM leaders who have all these leadership qualities, you can create the strongest MLM team for your business.

Conclusion

This is the complete guide to launch a successful MLM company in India. If you follow all these steps carefully, you can launch a new MLM company in India seamlessly and can soon become a leader in the MLM business sector. For any inquiry about MLM business plan or to buy the best MLM software in India, you can contact DNG Web Developer. We are a famous MLM software company in Ahmedabad, India. Though there are more leading MLM software service providers in India available, only we can give you MLM software at the lowest price. Call us now to get a free demo of MLM software or consult our team to find a suitable MLM plan for you.