Press Information Bureau

Government of India

Ministry of Corporate Affairs

10-May-2012 17:04 IST

MLM Companies

There is no separate activity code to identify Multi Level Marketing (MLM) companies. Therefore, these companies cannot be separately identified from the list of companies registered under the Companies Act, 1956. Also, there are no separate guidelines for MLM companies. Hence information on action and tax collection is not available.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in the Lok Sabha today in reply to a written question whether the Government is aware that the Multi Level Marketing (MLM) companies are prevalent in India; the details thereof alongwith the total number of MLM companies in the country; whether the Government has proposed any guidelines for these MLM companies, details of any action against any MLM company and any kind of tax collected from such companies in last three years.

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ST/-

Regulatory identification of multi level marketing: no separate activity code or guidelines, preventing separate data on actions. There is no designated activity code or separate regulatory framework for Multi Level Marketing (MLM) companies, so they cannot be separately identified from companies registered under the Companies Act, and consequently information on enforcement action or tax collection specific to MLMs is not available.