Direct reporting network Beijing March 27th (author: Ouyang Wenzhang) enterprises do direct marketing must apply for direct business license, which is the direct selling regulations. But some companies implement the "first on the bus, after the replacement ticket" strategy, in did not obtain direct selling license began to direct. Direct selling enterprises do "shotgun"? I believe that this approach is certainly not enough, must be severely punished by the industry and commerce, the public security organs.

Why? The reason is very simple, because the direct marketing business is the license system. The direct selling business license system is a series of links and systems about the implementation of the direct selling license, the implementation of the program, and so on. Direct selling license system is of great significance in combating illegal pyramid schemes, regulating direct selling behavior, preventing fraud, protecting the legitimate rights and interests of consumers and the public interest. It is the only symbol to identify the legitimate direct selling behavior. Only by law to obtain a business license, in order to engage in direct sales activities; did not obtain the direct business license, are illegal or illegal behavior.

Direct selling license system provides a specific legal basis for direct selling enterprises to engage in direct marketing activities and regulatory activities of the relevant departments. The system detailed provisions of the access to the specific scope and requirements of the direct selling license of the conditions, methods, procedures, and to engage in direct sales activities, to the relevant enterprises direct behavior provide a concrete basis for, at the same time, also for commerce, industry and commerce administrative department in charge of implementation of appropriate behavior for supervision and inspection to provide specific basis. The system is an important means to prevent fraud, protect the legitimate rights and interests of consumers and the public interest. It through strict examination of the enterprise to have the conditions, and the direct selling activities necessary supervision, excluding the risk may bring to the society, individual, the effective protection of the consumer and the social public interest.

  Therefore, enterprises "direct" shotgun "which is illegal or illegal act is a feasible way. So, companies want to do direct sales, you must start the application process of direct selling license. Here, we may wish to learn about the relevant laws and regulations:

According to the provisions of Article 7, Article 10 of "direct management Ordinance", to apply for direct selling enterprises and direct selling enterprises to apply for the establishment of branch offices shall fill in the application form and submit the following application documents and materials: (1) the investor has a good business reputation, before the application is filed in continuous 5 years no records of major illegal operation; foreign investors should also be 3 years above in outside China engaged in direct selling activities experience; (2) paid registered capital of not less than 80 million yuan; (3) in accordance with the law in the designated bank full payment of the deposit; (4) in accordance with the provisions of the construction set up information filing and disclosure system.

According to the "direct management Ordinance," the provisions of Article 8, apply to become a direct selling enterprise shall fill in the application form and submit the following application documents and materials: (1) enterprise qualify as a proof of the application condition of direct selling enterprises. Foreign investors apply for undertaking direct selling operation, shall be submitted to the in foreign enterprise registration registration certificate, the legal representative (to the shareholders' meeting or the meeting of the board of directors awarded the plenipotentiary companies in foreign activities of person) to prove that, accounting / auditing agency certification list of balance sheet and income in the past three years, the certificate shall be the foreign investors to the country or region where a notarization institution shall be notarized, issued by the notary documents (and provide Chinese translation). Foreign investors should also be issued by the overseas for more than 3 years engaged in direct selling activities experience written statement; (2) the articles of association of the enterprise, which belongs to the Sino foreign joint ventures, cooperative enterprises, shall also be provided in the contract of the joint venture or cooperation enterprises; (3) market report, including, in accordance with the provisions of the "direct management Ordinance" proposed by local at or above the county level people's Government approved engaged in direct sales activities in the area of the plan of service network. Plan of service network as the region where the district / county (including County, the same below) for more than a business departments, according to the relevant provisions of the "direct management Ordinance" and the Ministry of Commerce on the plan of service network verification, to be approved, issue a written certification letter to the competent departments of commerce at the provincial level. The administrative department of commerce at the provincial level to the Ministry of Commerce turn enterprise application materials, shall be issued at the same time to plan of service network with "direct management Ordinance" and the relevant provisions of the confirmation letter; (4) conforms to the national standards of product description; (5) quasi signed with the salespeople to sell the contract sample; (6) issued by the accounting firm capital verification report; (7) enterprises and designated banks to reach the agreed to in accordance with the "direct selling regulations" provisions of the margin agreement.

Above, the basic requirement is to apply for direct selling licenses. If they can not achieve the requirements of the enterprises to give up direct suggestions. In accordance with the above requirements, enterprises can start procedures to apply for direct selling license, obtain direct selling license to do direct sales, do not "first on the bus, after the replacement ticket". 3

(Department of Chinese market society direct core expert committee of experts)

Editor: small Shen

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