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.
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.
CAclubindia
