MCA Query regarding Pvt Ltd.Company registration

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An individual applying to register a private limited company for network marketing received a query from the MCA. The query requested the removal of terms like 'network marketing' and 'multi-level marketing' from the Memorandum of Association (MOA), citing them as prohibited activities. The applicant is seeking confirmation on the validity of this query and any relevant legal references.

CA ANANT KUMAR

CA ANANT KUMAR (Querist)

02 December 2021 I had applied for new company registration as network marketing company and I have received below query from MCA: "Business of 'network marketing' 'channel marketing', 'multi link gift schemes', 'multilevel marketing', 'multi linking promotional activities', 'direct sales associates', 'pyramid structure schemes' and other similar activities cannot be done. Hence, remove such words and objects from MOA."

Can any one please confirm if this is valid query and give any section/rule reference which prohibits doing this business.

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 December 2021 It's not a valid query. Contact MCA helpline.

CA ANANT KUMAR

CA ANANT KUMAR (Querist)

04 December 2021 I had emailed them and as per them:
Remove Network marketing/multilevel marketing from the main objects as such objects are not allowed as per RBI Press Release 2014-2015/1383 dated 1.1.2015

And this press release is only cautioning the public against network marketing companies and nothing else. Also not sure if they can refer this press release for registering company.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 December 2021 Shift it to other objects

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