Your direct selling licence, approved the first time.
Recruiting members or paying commission in Malaysia means a licence from KPDN. We prepare the company, the documents and the marketing plan, then carry the application through to the certificate.
- ● Paid-up capital verified against declared model
- ● Marketing plan rebalanced — recruitment weighting cleared
- ● Sales kit and code of ethics attached
- ● Submitted via BLESS 2.0 — pack complete
- ● Licence issued — AJL number on all material
The first real question
How much paid-up capital will KPDN expect?
Two things decide it: what you sell through, and who owns the company.
Choose a model and a shareholding. The figure counts up here, and the marker shows where you land against every other category.
- Governing law
- Direct Sales and Anti-Pyramid Scheme Act 1993
- Regulator
- KPDN, Ministry of Domestic Trade and Cost of Living
- Submitted through
- BLESS 2.0, with Form AJL-1
What the licence actually covers
If you recruit members or pay commission, you need one.
The Act does not care what you call the business. A plan that rewards recruitment, a distributor network, a sales kit — any of these put you inside the direct selling regime.
Company and capital
A locally incorporated company with the paid-up capital actually in place and evidenced. This is the most common reason an application stalls before it is even read.
Marketing plan
The compensation plan is read, not skimmed. Plans leaning on recruitment income rather than product sales invite questions, and questions cost months.
Sales kit and code of ethics
Every participant must receive a sales kit containing the marketing plan and the company’s code of ethics. Drafted as part of the application, not retrofitted after approval.
Company profile
Director and shareholder backgrounds, identity documents, the organisation chart and the current EPF statement. Thin profiles get queried.
The sequence
From incorporation to an AJL number
The order matters. Doing step three before step one is how applications come back.
Incorporate and fund the company
A Malaysian company with paid-up capital at the level your model requires, properly recorded rather than nominally stated.
Build the company profile
Director and shareholder backgrounds, identity documents, organisation chart and the latest EPF statement, as one coherent pack.
Draft the marketing plan and sales kit
The compensation plan, the code of ethics and the buy-back terms, written to survive a reading by the Controller rather than to impress a recruit.
Complete Form AJL-1
Typed, sealed, and consistent with everything else in the pack. Capital structure, equity participation and nature of business all have to agree with your filings.
Submit through BLESS 2.0
The application goes in as a complete set. Incomplete submissions are not queued for consideration, they simply wait.
Answer the Controller, then collect
Queries carry short response windows. On approval, collection is done by the managing director or senior management in person.
After approval
The licence comes with conditions attached
Worth reading before you apply, because they shape the compensation plan and the refund policy you are about to commit to.
- Buy-back obligationMarketable goods sold to a participant must be bought back on request within the period the regulations set, at not less than ninety per cent of what was paid.
- Sales kit for every participantContaining the marketing plan and the company’s code of ethics, issued to each person who joins.
- Display the licenceThe original licence is displayed at the company’s premises, and the AJL number appears on company material.
- Respond to the ControllerInformation requested by the Direct Sales Controller carries a fixed deadline from the date of the letter.
- Price everythingGoods on display and services offered are priced, and only company-issued material may be circulated.
- Renew on timeThe licence runs for a fixed term and must be renewed before it lapses, with reporting kept current.
Questions we get before the first meeting
What does AJL stand for?
It comes from Akta Jualan Langsung, the Malay name of the Direct Sales and Anti-Pyramid Scheme Act 1993. In practice people use “AJL” to mean the licence itself and the number printed on it.
How much paid-up capital do I need?
It depends on your selling model and your shareholding. Multi-level marketing sits at the top of the range, single-level and mail order lower, and any foreign shareholding raises the bar considerably. The checker above gives your figure.
Can a foreign-owned company apply?
Yes, but the capital requirement is materially higher than for a Malaysian-owned company, and the shareholding structure is examined closely. Model this before incorporation.
How long does approval take?
It depends almost entirely on whether the submission is complete. A clean, consistent pack moves; one that generates queries restarts the clock each time.
Do I need the licence before I start recruiting?
Yes. Carrying on a direct selling business without a valid licence is an offence under the Act, and collecting joining fees ahead of approval is exactly what the legislation targets.
Will you review a compensation plan we already have?
That is usually where we start. Most plans written for launch excitement need rebalancing before submission, and it is far cheaper to change them now than to explain them later.
Find out where you stand before you spend anything
Tell us your intended model and your shareholding. We will tell you what the licence will require of you, and what has to change first.