Main object for mlm company

This query is : Resolved

Ankit sehra (Querist)
Follow

08 August 2013
Dear Experts ,

Can we used below same Main Objects for registering a multi level marketing Pvt ltd. company.

Please Suggest

THE MAIN OBJECTS TO BE PURSUED BY THE “M/S. …………………..;”

a) To carry on all kinds of commission agency, Multi – Level Marketing (Network Marketing), Marketing Agency, Auctioneers Business and to Act as Selling Agent, Buying Agent, Clearing Carriage and Forwarding Agents, Distributors, Traders, Dealers or Stockiest for Consumable Goods, General items, Tea, Spices, Cosmetics, Consumer Products, Service Products, Medical Herbs and Merchandise of all kinds, and to appoint any number of agents for its business, and to make any collaboration, franchisee arrangement with any Government, State, Firm/Firm, Corporation, authority or person for the aforesaid in India or elsewhere in the world and appoint its own agents.
b) To carry on and procure insurance (Life/Non-life) business as a corporate agent/broker and loss assessment on behalf of the general insurance Firm whether in Government sector or Private sector, may be caused due to marine risk, fire, burglary, theft, break down, loss and profit, boiler, motor claims or any other form losses at money, agent for collection of insurance premium. (through network business) Subject to approval of IRDA.

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
Follow

03 August 2024 Your proposed main objects for a Multi-Level Marketing (MLM) company are quite comprehensive and cover various aspects of MLM operations. However, to ensure clarity and adherence to legal and regulatory requirements, it's essential to refine and structure these objects appropriately.

Here’s a revised version of the main object clause tailored for a Multi-Level Marketing (MLM) Private Limited company:

---

**"The main objects to be pursued by the Company on its incorporation are:**

1. **To engage in and carry on multi-level marketing (MLM) or network marketing business, including the recruitment and management of distributors, agents, and sales representatives, and to conduct marketing, promotional, and sales activities through such network.**

2. **To act as a commission agency, marketing agency, and distributor for a wide range of products including, but not limited to, consumable goods, general items, tea, spices, cosmetics, consumer products, service products, medical herbs, and merchandise of all kinds.**

3. **To act as selling agents, buying agents, clearing, carriage, and forwarding agents, and to handle all aspects of the distribution and sales of products through various channels, including MLM networks.**

4. **To enter into collaboration, franchise agreements, or partnership arrangements with any government bodies, corporations, firms, or individuals, both within India and abroad, to expand and enhance the MLM business operations.**

5. **To provide and procure insurance services as a corporate agent or broker, including life and non-life insurance, and to carry out loss assessment and claims handling on behalf of insurance firms, subject to approval by the Insurance Regulatory and Development Authority (IRDA).**

6. **To appoint and manage agents and distributors for the sale and promotion of insurance products and other related services, and to engage in activities related to insurance premium collection through network marketing.**

7. **To undertake all other activities and provide all services necessary or incidental to the attainment of the above objects.**

**In addition to the above main objects, the Company shall have the power to engage in any lawful activity that is related to or ancillary to its primary business as described above."**

---

### **Key Considerations:**

1. **Regulatory Compliance:**
- Ensure that the MLM business model adheres to relevant laws and regulations in your jurisdiction, including those related to MLM and network marketing.

2. **Insurance Activities:**
- The insurance-related activities must comply with the guidelines of the Insurance Regulatory and Development Authority (IRDA) and other relevant regulatory bodies.

3. **Clarity and Specificity:**
- Make sure the object clause clearly defines the scope of the MLM activities and avoids any ambiguity that could impact the company's operations or legal compliance.

4. **Legal Consultation:**
- It's advisable to consult with a legal expert or company secretary to tailor the object clause precisely to your business model and ensure it meets all regulatory requirements.

By refining your main object clause as suggested, you ensure that it effectively supports the operations of an MLM company and aligns with legal and business standards.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now