{"id":1396,"date":"2022-01-22T15:02:47","date_gmt":"2022-01-22T08:02:47","guid":{"rendered":"https:\/\/queenlawyers.com\/en\/?p=1396"},"modified":"2022-01-22T15:33:20","modified_gmt":"2022-01-22T08:33:20","slug":"establishment-of-cosmetics-mlm-company","status":"publish","type":"post","link":"https:\/\/queenlawyers.com\/en\/2022\/01\/22\/establishment-of-cosmetics-mlm-company\/","title":{"rendered":"Establishment of Supplements and Cosmetics MLM Company"},"content":{"rendered":"<p style=\"text-align: justify\"><strong>COMPANY ESTABLISHMENT<\/strong><\/p>\n<p style=\"text-align: justify\">Retail trading business group of goods by selling them includes trading activities through direct sales or special distribution systems such as single-level marketing and multi-level marketing, as well as retail trade commission agents. (ref. KBLI 47999)<\/p>\n<p style=\"text-align: justify\">The Business Sector is regulated in Government Regulation No. 29 of 2021.<\/p>\n<p style=\"text-align: justify\">The Scope of Activities is regulated in Government Regulation No. 5 of 2021, it is required that:<\/p>\n<ul style=\"text-align: justify\">\n<li>Business Entity in the form of Limited Company; and<\/li>\n<li>Employ at least 1 Indonesian citizen as a member of the Board of Directors and 1 Indonesian citizen as a member of the Board of Commissioners.<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>MLM LICENSE<\/strong><\/p>\n<p style=\"text-align: justify\">Business licensing requirements<\/p>\n<ol style=\"text-align: justify\">\n<li>Business entity in the form of Limited Company<\/li>\n<li>Meet the criteria:<br \/>\n(1) Has exclusive distribution rights for goods to be distributed through direct sales.<br \/>\n(2) Have a marketing program (marketing plan);<br \/>\n(3) Have a code of ethics;<br \/>\n(4) Recruiting direct sellers through a network system;<br \/>\n(5) Selling goods directly to consumers through a marketing network developed by direct sellers;<br \/>\n(6) Employ at least 1 Indonesian citizen as a member of the board of directors and 1 Indonesian citizen as a member of the board of commissioners.<\/li>\n<\/ol>\n<p style=\"text-align: justify\">Business licensing obligations<\/p>\n<ol style=\"text-align: justify\">\n<li>The company provides information orally and in writing to prospective direct sellers at least regarding:<br \/>\n(1) Company identity;<br \/>\n(2) Quality and specifications of goods;<br \/>\n(3) the condition and guarantee of the goods and provide an explanation of their use, repair, and maintenance;<br \/>\n(4) Marketing program (marketing plan);<br \/>\n(5) Code of ethics.<\/li>\n<li>Companies that have recruited direct sellers must:<br \/>\n(1) Provide sales aids (starter kit) to each direct seller which at least contains information on goods, marketing plan, and code of ethics;<br \/>\n(2) Ensuring that the activities carried out by direct sellers are in accordance with the marketing plan and code of ethics;<br \/>\n(3) Attaching a label on the goods and\/or packaging containing at least the name of the company and a statement that the goods are sold using a direct selling system;<br \/>\n(4) Determine the price of goods sold in rupiah currency and applies to direct sellers and consumers;<br \/>\n(5) Providing commissions and\/or bonuses based on the results of goods sales activities carried out by the direct seller and his network in accordance with the agreement;<br \/>\n(6) Giving a grace period to the consumer to return the goods within a period of 7 (seven) working days from the receipt of the goods, if it turns out that the goods are not in accordance with the agreement;<br \/>\n(7) Provide compensation, compensation, and\/or compensation for losses caused by the use, use, and utilization of traded goods;<br \/>\n(8) Carry out coaching and training to improve the ability and knowledge of direct sellers, so that they act correctly, honestly, and responsibly at least once in 1 (one) year;<br \/>\n(9) Providing equal opportunities to all direct sellers to excel in marketing goods;<br \/>\n(10) Have a list of direct sellers who are members of their marketing network which is equipped with the identity data of the said direct sellers;<br \/>\n(11) Selling goods that already have a distribution permit or have complied with the provisions of quality standards in accordance with the provisions of laws and regulations;<br \/>\n(12) Ensure direct sellers do not sell goods through indirect distribution channels and\/or online marketplaces.<\/li>\n<li>The Company submits a report on the Company&#8217;s business activities to the Central Government.<\/li>\n<\/ol>\n<p style=\"text-align: justify\"><strong>CERTIFICATION OF SUPPLEMENTS AND COSMETICS<\/strong><\/p>\n<ul style=\"text-align: justify\">\n<li>Registration of Supplements and Cosmetics (minister\/head of the agency)<\/li>\n<li>Distribution Permit for Supplements and Cosmetics (minister\/head of the agency)<\/li>\n<li>Approval of Supplements and Cosmetics Advertisement (minister\/head of the agency)<\/li>\n<li>Clinical Trial of Supplements and Cosmetics (minister\/head of the agency)<\/li>\n<li>Importer recommendation (minister\/head of the agency)<\/li>\n<li>Recommendation as an applicant for Notification of Supplements and Cosmetics (minister\/head of the agency)<\/li>\n<li>Supplement and Cosmetic Notification Standard Certificate (minister\/head of the agency)<\/li>\n<li>Domestic Electronic System Operator Registration Certificate (TD PSE) (minister\/head of the agency)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>COMPANY ESTABLISHMENT Retail trading business group of goods by selling them includes trading activities through direct sales or special distribution 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