If you are someone who wants to venture into the field of direct selling, then you should be aware of the list of government-approved direct-selling companies. It is an essential part of your research and will affect how your direct selling career progresses. So, today let’s understand how government approved direct selling companies and the process behind it.
How to get a direct-selling company approved by the government
The Ministry of Consumer Affairs, Food and Public Distribution regulate direct-selling companies in India. As a result, the companies are supposed to comply with the guidelines in the Direct Selling Guidelines 2016. Let me explain one by one the parameters a direct selling company should follow to get approved by the government.
- Be registered as a legal entity in India and have a valid PAN number.
- Have a code of ethics and business practices that meet the guidelines set forth by the Ministry of Consumer Affairs, Food and Public Distribution.
- Provide a buy-back policy for unsold inventory and a cooling-off period for new distributors to cancel their contracts.
- Conduct business through a network of independent distributors who are compensated for their sales and recruitment efforts.
- Provide training and support to their distributors on product knowledge, sales techniques, and business development.
- Obtain necessary licenses and permits from local authorities as required by law.
- Comply with all tax and regulatory requirements in India.
- Once a direct-selling company meets these criteria, it can apply to the Ministry of Consumer Affairs, Food and Public Distribution for approval. The Ministry will review the application and may conduct an inspection of the company’s operations before granting approval. Once approved, the company can legally operate as a direct selling company in India.
So, what does being a government-approved direct-selling company in India means?
What does it mean to be a legal direct-selling company in India?
As we have seen already, to become a government-approved direct-selling company in India, a company must meet certain criteria, including being registered under the Companies Act 1956 or the Companies Act 2013. But that is not the only criteria a company has to follow. Do you know what it means to be a government-approved direct-selling company in India? Let’s see.
It means that,
- The company will have a minimum turnover of Rs. 10 crores in the previous financial year.
- The company have been in operation for at least 12 months.
- The company have a written agreement with its direct sellers, which outlines the terms and conditions of the direct selling relationship.
We have heard a lot about the Direct Selling Guidelines of 2016. As you may have gathered by now, these guidelines are quintessential for direct-selling companies in order to get approved by the government of India. So, why don’t we get to know the Direct Selling Guidelines 2016 in detail?
The Direct selling guidelines, 2016, in detail
The Direct Selling Guidelines, 2016 is a set of guidelines issued by the Ministry of Consumer Affairs, Food and Public Distribution, Government of India, for regulating the direct selling industry in India. The guidelines were issued to protect consumers’ interests and ensure that direct-selling companies operate fairly and transparently.
The key provisions of the Direct Selling Guidelines, 2016 are as follows:
- Registration: Direct selling companies must register with the Department of Consumer Affairs within 90 days of the commencement of their business.
- Disclosure: Direct selling companies are required to disclose the following information to their sales agents: (i) the details of the goods or services being sold, (ii) the remuneration system, (iii) the procedure for the return of goods and (iv) the procedure for lodging complaints.
- Cooling-off period: Consumers have the right to cancel their order within a cooling-off period of 30 days.
- Refund: Direct selling companies are required to refund the purchase price of the goods or services within a period of 15 days from the date of return of the goods.
- Pyramid schemes: Direct selling companies are prohibited from operating pyramid schemes.
- Grievance redressal: Direct selling companies are required to set up a grievance redressal mechanism for addressing consumer complaints.
- Code of Ethics: Direct selling companies are required to adhere to a code of ethics while carrying out their business.
In Conclusion
So, yes. Direct selling companies like QNET India that the government of India approves is totally safe. Because as you have seen above, they must comply with numerous guidelines and implement various rules and regulations to get legalized by the government. So, if you are ever going to venture into the field of direct selling, ensure that you are getting associated with a government-approved direct selling company like QNET India. It will give you stability and insurance about your future.
So, if you want to be a direct seller, then go ahead and pay a visit to the official site of QNET India. Established direct-selling companies like QNET India provide all their independent representatives with training and necessary support. Don’t waste any more time. Make wide decisions for a happy and secure future.