AJL License

Home

{“title”:””,”content”:”\r\n\r\n
\r\n\r\n\r\n\r\n
\r\n
\r\n\r\n
\r\n

01 Direct selling licence · Malaysia

\r\n

AJL licence application in Malaysia, prepared properly the first time

\r\n

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.

\r\n\r\n
\r\n Request a consultation\r\n Review our process\r\n
\r\n
\r\n\r\n \r\n
\r\n
\r\n

Are you ready to apply?

\r\n 1 of 5\r\n
\r\n
\r\n\r\n
\r\n
\r\n

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

02 Our position

\r\n

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

\r\n
\r\n
\r\n

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.

\r\n

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.

\r\n

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

\r\n
\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n
\r\n

03 Licence categories

\r\n

Which category applies to you

\r\n

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

\r\n
\r\n\r\n
\r\n \r\n \r\n \r\n \r\n
\r\n\r\n
\r\n Category MLM\r\n

Multi-level marketing

\r\n

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

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

04 Engagement process

\r\n

How the application runs

\r\n

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

\r\n
\r\n\r\n
    \r\n
  1. 1
    \r\n

    Structure and eligibility review

    \r\n

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

    2. \r\n
  2. 2
    \r\n

    Marketing plan and price structure

    \r\n

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

    3. \r\n
  3. 3
    \r\n

    Document preparation

    \r\n

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

    4. \r\n
  4. 4
    \r\n

    Submission

    \r\n

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

    5. \r\n
  5. 5
    \r\n

    Queries and interview

    \r\n

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

    6. \r\n
  6. 6
    \r\n

    Licence and ongoing obligations

    \r\n

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

    7. \r\n
\r\n\r\n
\r\n Full process detail\r\n
\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n
\r\n

05 Submission contents

\r\n

What we prepare for you

\r\n

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

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

One file, internally consistent, ready for assessment

\r\n
\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n
\r\n

06 Standards of engagement

\r\n

What you can hold us to

\r\n

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

\r\n
\r\n\r\n
\r\n
\r\n 01\r\n

We will not guarantee approval

\r\n

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

\r\n
\r\n
\r\n 02\r\n

We tell you before you spend

\r\n

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

\r\n
\r\n
\r\n 03\r\n

We model, not reassure

\r\n

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

\r\n
\r\n
\r\n 04\r\n

We quote a fixed fee

\r\n

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

\r\n
\r\n
\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n\r\n
\r\n
\r\n \r\n \r\n \r\n \r\n \r\n

Lesen Jualan Langsung

\r\n

Direct Selling Licence

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

Illustration, not a reproduction of an issued licence.

\r\n
\r\n\r\n
\r\n

07 The deliverable

\r\n

What the file is actually for

\r\n

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

\r\n
\r\n Begin your application\r\n See the requirements\r\n
\r\n
\r\n\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n
\r\n

Frequently asked

\r\n

Common questions

\r\n
\r\n\r\n
\r\n
\r\n What is an AJL licence?\r\n
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.
\r\n
\r\n
\r\n Do I need an AJL licence if I only sell online?\r\n
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.
\r\n
\r\n
\r\n Is an AJL licence the same as SSM registration?\r\n
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.
\r\n
\r\n
\r\n How long does the application take?\r\n
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.
\r\n
\r\n
\r\n Can you guarantee the licence will be approved?\r\n
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.
\r\n
\r\n
\r\n What happens after the licence is granted?\r\n
Reporting, approval for new products before distribution, and renewal. Changes to the marketing plan need justification too.
\r\n
\r\n
\r\n
\r\n
\r\n\r\n\r\n
\r\n
\r\n

Next step

\r\n

Start with an honest assessment

\r\n

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.

\r\n Request a consultation\r\n

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

\r\n
\r\n
\r\n\r\n\r\n\r\n\r\n
“}