Running a direct selling mlm company? Then you need more than just great products and a motivated team. You also need to keep your paperwork in order. And by paperwork, we mean important records—because the law says so.
Under the Direct Selling Rules, 2021, every direct selling mlm company in India must maintain proper records. These records help keep your business transparent, trustworthy, and legally safe.
Why Keeping Records Is So Important for direct selling mlm company
Imagine someone files a complaint or a government officer sends a notice. If your records are in place, you can show the facts and protect your direct selling mlm company. But if not? You could face fines, legal trouble, or worse shutting down. So keeping records isn’t just paperwork—it’s protection.
Key Records You Must Maintain Here are the most important records every direct selling mlm company must keep:
1. List of Active Direct Sellers
You need a proper list of all your current sellers. This should include:
- Full names
- ID numbers or codes
- When they joined & State
- If they’ve left, when and why
2. Direct Seller Agreements
Every direct seller should have a written agreement. Keep:
- A signed copy for each person
- Updated versions if terms change
- Digital or physical format—both are fine
3. Sales and Commissions Record
You must track:
- What was sold and to whom
- How much your seller earned
- How and when they were paid
- Any tax deducted (like TDS)
This helps during audits and tax filings.
4. Complaint Register
Set up a proper system to record:
- Consumer complaints
- Date and nature of complaint
- How and when it was resolved
You must solve complaints within 45 days. This is a legal rule.
5. Product Returns and Refunds
If a customer returns a product or asks for a refund:
- Record their name, date, and reason
- Keep track of refund status
- Note how quickly the issue was resolved
6. Training Materials
If you provide training to your sellers:
- Save the training content
- Keep attendance records
- Store feedback or certificates (if any)
This shows you’re educating your team properly.
7. Marketing and Ad Records
All ads must be truthful and legal. Keep:
- Copies of your advertisements
- Approval emails or notes
- Proof that claims made were correct
8. Compliance Certificates and Reports
You must submit yearly compliance reports. So, keep:
- Copies of certificates you file
- Notes from your legal team or consultants
- Proof of following all rules
How Long Should You Keep These Records?
It’s best to keep all records for at least 3 to 5 years. You can store them digitally (cloud or system) or physically—just make sure they are safe and easy to find.
Need Help Managing Your Records?
At Gavel Direct Selling MLM Consultant, we help companies:
- Set up proper record systems
- Draft compliant agreements and policies
- Handle legal notices and audits
- Stay updated with the latest legal rules
Contact us today: 7011520061
Visit: www.gavellawfirm.in