Before applying for MDDA membership, a direct selling license must be obtained from the Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) by following the steps below:
1. Before engaging in direct selling, a business need to have a clear understanding of the Direct Selling Act 1993 (DSA93).
2. Choose the Marketing Plan type.
3. Get incorporated under the Companies Act 1965 with specific Paid Up Capital for the related plan.
4. Submit all the documents certified by Suruhanjaya Syarikat Malaysia (SSM) required to KPDNKK. The documents are listed as follows:
- AJL-1 Form (Typed)
- Memorandum and articles of Association verified by statutory declaration made by a Director
- The latest certified Forms 24 & 49
- Background of all members of the Board of Director and shareholders of the company
- Complete explanation on the company’s marketing plan
- Buy-back policy sample (for multi-level plans only)
- Format A – Price structure form
- Format B – Justification on amended marketing plan form
- Direct selling details and performance form
- Brochure/leaflet/print materials and suppliers’ invoices of the products/services
- A sales contract sample (for single level and multi level)
- A mail order advertisement sample (for mail order)
- For companies which provide services, documents or written agreement from all service providers, where relevant
Note: Forms can be downloaded at www.kpdnkk.gov.my