MOA of Network Marketing Company

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A user is seeking a draft Memorandum of Association (MOA) for a network marketing company. However, they received a query from the Ministry of Corporate Affairs (MCA) stating that terms like 'network marketing', 'multi-level marketing', and 'pyramid schemes' are not permitted. The user is asking for confirmation if this query is valid and for any legal references that prohibit such business activities.

CA ANANT KUMAR

CA ANANT KUMAR (Querist)

14 November 2021 Can anyone please provide me draft MOA of Network Marketing company. Thanks in advance.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 November 2021 https://csarengarajan.blogspot.com/2010/08/main-object-of-multi-level-marketing.html

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CA ANANT KUMAR

CA ANANT KUMAR (Querist)

02 December 2021 Hi, I had applied for new company registration as network marketing company including above object clause as per link but 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.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

02 December 2021 Refer ::: https://blog.ipleaders.in/mlm-india/ for some details....

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