MLM companies in India must navigate a complex regulatory landscape. The Prize Chits and Money Circulation Schemes (Banning) Act 1978 prohibits pyramid schemes, so legitimate MLM must focus on product sales rather than recruitment fees.
Ensure your company has proper registration, clear compensation plans that reward product sales, and transparent terms. Avoid exaggerated income claims, which can attract regulatory action. Consulting with legal experts familiar with direct selling regulations is essential.