The importance of company registration consultants for a new direct selling venture
Direct selling has come a long way toward becoming a preferred business model. Currently, the direct selling industry as a whole generates approximately 450 billion dollars in sales revenue per year. The revenue is expected to double by the year 2035. In India, the direct selling industry clocks a sales revenue of around 3.5 billion dollars a year, and there is significant room for growth for the Indian direct selling industry. Direct-selling business models have a lot of potentials, not just in India but worldwide.
Company registration consultants and their services
Even though the industry is huge, the majority of the market share is controlled by a handful of companies. Getting into that elite club is a long and rigorous journey, and only a few companies will ever make it there. The very first step in running a successful direct-selling business is to register the company according to the laws and regulations. Acquiring all the necessary licenses and documents can be a hassle for anyone. This is where direct-selling company registration consultants come in. They assist the company in obtaining all necessary licenses and paperwork so that it can focus on the things that truly matter.
Direct-selling companies in India must abide by the rules and regulations set by the Indian government. Let's discuss these in detail.
The compensation plan and a list of the products the direct selling company is willing to sell should be submitted to register.
According to government regulations, an MLM or direct selling organisation must have an income tax ID, TDS ID, GST ID, and any other necessary licenses.
They ought to open a bank account at a nationalised institution.
The business should state what kind of business it is.
Every registered direct-selling business is required to have a consumer complaints department. Within seven days, they must respond to consumer complaints.
It is strictly forbidden to pay commission that isn't related to sales volume.
The distribution of faulty or outdated items is forbidden.
The multi-level marketing business needs to be a distinct legal organization that is registered as a company or a limited liability partnership under the Companies Act of 2013 or the Limited Liability Partnership Act of 2008.
Additionally, they should seek membership in the Indian Direct Selling Association (IDSA).
Following registration, the MLM company shall keep the following records at the corporate headquarters:
certificate of registration from the Registrar of Companies.
Copies of the taxpayer identification number, director identification number, and permanent account number
Copies of the IT return and the GST certificate were submitted to the relevant authority.
a copy of the profit and loss statement and balance sheets
Other services provided by the consultants
Company registration consultants not only provide support for the registration process but also have multiple services that help a direct-selling company become successful. Some of the most common services provided by company registration consultants are product development support, sourcing support, and leadership crash courses. Let's briefly discuss these three most popular services provided by direct-selling consultants.
To have a successful product, the product lifecycle should be managed effectively. A lot of new direct-selling companies have little or no experience in developing and managing a product's life cycle. Direct-selling consultants assist a company in moving through the most critical stage of the product cycle and developing a worthy product with a higher chance of market success.
Product sourcing and increasing margins
Most direct-selling companies do not have manufacturing facilities. They prefer to source their products from OEM companies. These OEM companies specialize in manufacturing all kinds of products. The major problem smaller direct-selling companies face is non-existent profit margins. They can neither increase the retail cost of their products nor get discounts from the OEM companies. This is where the direct-selling consultants come in. They help the companies find favorable deals from the OEM companies, which in turn helps the company improve its overall profit margins.
Leadership crash course
Only a capable leader can run a successful company. Managers and CEOs of a company are required to make quick and accurate decisions. They also have to motivate the employees and bring the best out of them. It is much easier said than done.
Direct-selling companies offer a simple crash course on the most important topics of leadership and management. The leadership and management crash course offered by direct selling company registration consultants helps in learning the techniques required to be a good and efficient leader.