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01 Direct selling licence · Malaysia

AJL licence application in Malaysia, prepared properly the first time

The licence is not one form. It is a structure, a plan, a product list and a contract that must all agree with each other. We build that file with you.

Request a consultation Review our process

Are you ready to apply?

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Governing statute
Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500)
Authority
Direct Selling and Franchise Development Division, KPDN
Categories handled
MLM, SLM, mail order and combined SL/MO licences
Based in
George Town, Penang. Serving applicants nationwide

02 Our position

A licence application is a legal file, not a marketing exercise.

Most applications that stall were never weak in a single document. They were weak in the relationship between documents: a payout the margin could not fund, a price structure that did not reconcile with the plan, a contract naming a commission the plan never mentioned.

We build the file as one object. The marketing plan is modelled before it is written, the price structure is reconciled against it line by line, and the contract and buy-back policy are drafted to the same facts. Assessors read these together, so we prepare them together.

Where the structure as it stands will not succeed, we say so at the review stage, before you have spent anything on drafting.

03 Licence categories

Which category applies to you

How you pay your sellers decides which category KPDN assesses you under, and what your marketing plan has to prove.

Category MLM

Multi-level marketing

Sellers earn from their own sales and from a downline. The most scrutinised category.

What your plan must prove That income follows product sales, not recruitment.
MLM licensing in detail

04 Engagement process

How the application runs

Six stages. Most of the work sits in the first two.

  1. 1

    Structure and eligibility review

    We check your structure, shareholding and scope, and tell you plainly what has to change first.

  2. 2

    Marketing plan and price structure

    The plan is modelled so the payout is sustainable, and priced in the form KPDN expects.

  3. 3

    Document preparation

    Forms, contract, buy-back policy, company records and product list, prepared as one consistent file.

  4. 4

    Submission

    Filed with the Direct Selling and Franchise Development Division at KPDN, checklist complete.

  5. 5

    Queries and interview

    Applications attract questions. We draft the responses and prepare you for the interview.

  6. 6

    Licence and ongoing obligations

    Reporting, product approvals and renewal. You receive a compliance calendar on handover.

Full process detail

05 Submission contents

What we prepare for you

The submission is a defined set of forms. Here is what the file contains.

Borang AJL-1The application form itself.
Company information and performanceCorporate particulars, directors, shareholding and trading record.
Direct sales contractDrafted to contain what the Act requires, cooling-off included.
Buy-back policyYour undertaking on repurchasing unsold stock.
Price structure (Format A)Pricing line by line, consistent with the marketing plan.
Marketing plan and justificationThe compensation structure, documented and defended.

One file, internally consistent, ready for assessment

06 Standards of engagement

What you can hold us to

Four commitments, stated before you engage rather than discovered afterwards.

01

We will not guarantee approval

The decision belongs to the Ministry. Any firm promising an outcome is either misinformed or selling you something other than licensing work.

02

We tell you before you spend

If the structure as it stands will not succeed, you hear it at the review stage, not after the drafting invoice.

03

We model, not reassure

Where a compensation plan overpays against margin, you will see the numbers rather than an opinion about them.

04

We quote a fixed fee

Scope and fee are agreed after the structure review, so the cost is known before the work begins.

Lesen Jualan Langsung

Direct Selling Licence

Issued under
Act 500
Authority
KPDN
Category
MLM
Status
Granted
Approved ✓

Illustration, not a reproduction of an issued licence.

07 The deliverable

What the file is actually for

Every stage exists to produce one document. Once it is granted you can recruit, trade and pay commission legally, and your compliance obligations begin.

Begin your application See the requirements

Frequently asked

Common questions

What is an AJL licence?
AJL is Akta Jualan Langsung, the Direct Sales and Anti-Pyramid Scheme Act 1993. The licence it refers to is the direct selling licence (Lesen Jualan Langsung), issued by KPDN. Any company carrying on direct sales business in Malaysia needs one.
Do I need an AJL licence if I only sell online?
Possibly. The Act’s definition of a direct sale includes sales through electronic transaction, so selling online does not put you outside the regime. What matters is how sellers are compensated.
Is an AJL licence the same as SSM registration?
No. SSM incorporation creates the company; the AJL licence permits it to carry on direct sales. You need the company first, but incorporating gives you no right to start selling.
How long does the application take?
It depends on how complete the file is and how many queries the assessment raises. We give you a realistic range after the structure review.
Can you guarantee the licence will be approved?
No, and you should be cautious of anyone who says they can. The decision belongs to the Ministry. What we can do is make sure the application is complete, internally consistent and defensible, and tell you honestly before you spend money if we think the structure as it stands will not succeed.
What happens after the licence is granted?
Reporting, approval for new products before distribution, and renewal. Changes to the marketing plan need justification too.

Next step

Start with an honest assessment

Tell us what you are building and where you have got to. We will tell you what the licence requires and whether you are ready.

Request a consultation

An independent licensing consultancy. Not an agency of, nor affiliated with, KPDN.