Can we use "direct selling co." word in moa?

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Ankit sehra (Querist)

26 July 2013 Dear Experts,

One of my client wants to open Direct Selling Company or (MLM) Multi Level Marketing Company( Like Oriflame or Amway ).

my question is whether we can use MLM or Direct Selling Co. word in Main Objective of MOA of this Company.

Please Suggest
Thank & Regards
Ankit Sehra

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)

27 July 2013 You can specify any object in the main object clause. There is absolutely no restriction on that. The companies act doesn't prescribe any pre-requisite condition on the main object. Only one condition is that, it should not against economy, industry and general public.
You can use MLM or DSC in main object

Ankit sehra

Ankit sehra (Querist)

27 July 2013
Thanks for Answer Shiva Ji,

i want to know one thing more related To MLM Or direct selling Company.

Is there any other formalities to run a Direct selling Company ( like IDSA Membership).
or
Pvt Ltd Co. Or sales tax no. is sufficient to run this business?

Thanks In Advance
Ankit Sehra

Ankit sehra

Ankit sehra (Querist)

08 August 2013 Dear,
Can you please tell me what is the minimum Capital requirement to register a multi level marketing Pvt Ltd company or Direct selling Company?
Or
Is there any limit of mca to register a mlm company, like minimum 1 cr. capital required for this?

what other registration we should take to run a multi level marketing company?

MLM Like :::--- AMWAY
Oriflame

Please suggest
Thanks & Regards
Ankit Sehra

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)

08 August 2013 Companies Act does state, any capital requirement for any kind of companies. Minimum capital is 1 lac for private limited and 5 lac for public company.
You can choose capital requirement as per your requirement.

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