Networking Business Chain System
Bharat Arora
(Querist) 03 November 2009
This query is : Resolved
Dear All
Myself Bharat Arora a Law student in sriganagar & woking in Insurance Sector I want to start a networking comapny-Chain system for which I need some guidelines as I have not experience for the same.
What are the legal aspects where I have to work so that can approve my company.
1. Need to register a company which department
2. Need a PAN No./TAN no./Service Tax No any condition to follow
3. It can be a prop. or a partnership firm
4. How can I approve my growth/income plans from govt authories or which department
5. Any expert advice or material which provide the basics for networking channel how it works step by step
regards
Bharat Arora 09914905678
A V Vishal
(Expert) 03 November 2009
Prize Chits and Money Circulation Schemes (Banning) Act
In the instant case Apple FMCG Marketing (Pvt.) Limited, the High Court said: "This scheme creates a chain of customers and the long and unbroken chain ensures a larger amount of easy money. The shorter and missed links in the chain result in earning lesser commission. Secondly, the person concerned does not get the value of money he pays. Thirdly, the companies collect service charges on the sale of goods. No service charge can be collected while the goods are sold. Apart from that, the MLM results in exploitation of personal influence of each and every distributor or his close relative. If a superior officer or his ward is involved in MLM, the subordinates are forced to become members in the chain."
As of now networking, chain system etc... by whatever name called is illegal in India.
Raj Kumar Makkad
(Expert) 03 November 2009
Mr. Bharat! First you complete your LLB and then decide in which side you want to go for your future. This is not the proper stage wherein you should require all the answers of the aforesaid quarried. Even if you have decided to start your business then you decide whether you want partnership or sole proprietorship firm. partnership should be registered with Registrar of Firms and Societies. IT department shall issue PAN. You take the services of any CA who shall get all the work done on your behalf.
Kiran Kumar
(Expert) 03 November 2009
i agree with Vishal ji,
but unfortunately various such type of firms/ companies are operating in India.
most of them are on FMCG side and few are selling drugs even for cancer treatment.
like a very popular one AMWAY.
Kiran Kumar
(Expert) 03 November 2009
i agree with Vishal ji,
but unfortunately various such type of firms/ companies are operating in India.
most of them are on FMCG side and few are selling drugs even for cancer treatment.
like a very popular one AMWAY.
Sachin Bhatia
(Expert) 03 November 2009
I also agree with Mr.Vishal
Bharat Arora
(Querist) 05 November 2009
thanks for the views & guidelines & definition of the Act I will concentrate on Law first
