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Is Network Marketing Legal in Nepal?

Written by Roshan Bhattarai · 2 min read >

Hello readers, hope you are doing well. We all are hearing words such as Multi-level Marketing, Direct Selling, or Network marketing in Nepal. And one question” Is Network marketing, legal in Nepal? “Confuses us all. This question is buzzing debate all over Nepal more, right after the Nepal government passed the Direct sales Networking bill. Today, in this article we are here with the answer to the question “Is Network marketing legal in Nepal?

Is Network Marketing Legal in Nepal?
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Network Marketing-Introduction

Network marketing is a business model that depends on person-to-person sales by independent representatives. A network marketing business may require you to recruit other people to work for the company. Network marketing is also called Multi-Level Marketing (MLM), cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, and home-based business franchising.

Network marketers work independently. Recruiters train, motivate and manage the people they recruit. Recruiters motivate one they recruit, to recruit more person under them.

Is Network Marketing Legal in Nepal?

No, Network marketing (MLM) is not legal in Nepal. Nepal government takes action against anybody engaged in network marketing or Pyramid scheme/MLM business. But, Direct selling business is legal in Nepal.

In Nepal direct selling of the products door to door is legal. But, recruiting others for the commission is strictly illegal. Many fraud cases, scams in history, made Network marketing or MLM business illegal in Nepal.

However, many companies in Nepal with permission in Direct selling business are running Network marketing businesses. While these two words always come together and may give the same meaning for most people. So, now let us understand the differences between Direct Selling and Network marketing.

Network Marketing (MLM) Vs. Direct Selling

Direct selling is the business in which distributors sell a company’s products and/or services directly to consumers. There is no fixed office for direct selling. Distributors might sell often products door to door, internet, or home.

Network marketing (MLM) runs with the same business model as direct selling companies work. The only difference is that in Network marketing, the independent contractors also make money from recruiting others to work for the company. Many companies registered in the name of direct selling, work as MLM companies in Nepal.

Direct Selling Companies in Nepal

Iboss Global International, Chahabil is the first registered direct selling company in Nepal. Here below are the registered direct selling companies in Nepal.

Iboss Global International, Chahabil
Healthy Living Nepal, Battisputali
Care Matters International, Chahabil
Nature Herbs International, Kumaripati
New Bibek Enterprises, Ekantakuna
Uturn International, Tokha
Global orients Nepal, Balaju

These are the registered direct selling companies in Nepal. For now, let us discuss the pros and cons of joining Direct Selling companies.

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Pros of Joining a Direct Selling Companies

Personality Development
Increase in Knowledge, ideas, and skills
Be your own boss
Build communication skills
Increase in income
Increase in Public relations

Cons of Joining a Direct Selling Companies

You can’t get your time back if you are not successful
Low income at the initial phase
All the decisions of the company will directly affect your strategy and business
Some direct selling companies require high startup costs to join
Lack of job security and regular payment

These are the pros and cons of joining a Direct Selling company in Nepal. All the direct selling companies registered may not be the right one for you. Thus, before joining any Direct Selling company, it is wise to read all the terms and conditions of the company.

Along with that, it is necessary to remember that, it is strictly prohibited by law to run and engage in a Multi-level Network Marketing business in Nepal. This is all about the Network marketing business in Nepal.

Thank you for reading. I hope after reading this article, you got clear about your doubt ” Is Network marketing, legal in Nepal?” If you find this article helpful, please like and share this article. Stay safe.