Feb 03, 2026 • AlbaTech Admin

Is MLM Legal in India? 2025 Guidelines & Compliance Guide

Is MLM Legal in India? 2025 Guidelines & Compliance Guide

Operating a Legal MLM Business in India

The Government of India has strict guidelines for Direct Selling. As a responsible MLM Software Company, AlbaTech ensures your software complies with all legal requirements to protect you from legal troubles.

Mandatory Software Features for Compliance

  1. KYC Management: Mandatory Aadhar/PAN card upload for all distributors.
  2. GST Invoicing: Automated GST bills for every product purchase.
  3. TDS Deduction: Automatic deduction of TDS on commission payouts, with reports for filing returns.
  4. Grievance Redressal: A dedicated support ticket system for distributor complaints.

Money Circulation vs. Product Sales

Schemes that only circulate money are illegal Ponzi schemes. A legal MLM must involve the sale of goods or services. Our E-commerce MLM Software integrates a full shopping cart, ensuring real product movement and legal compliance.

Stay safe and grow big with AlbaTech's legally compliant architecture.

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