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Terms and Procedures of Registering Direct Selling Company in Indonesia

Registering Direct Selling Company in Indonesia – Direct sales are a process of marketing products directly to consumers. This process usually occurs in the homes of prospective buyers, other people’s homes, at work, and other places outside the retailers’ permanent locations. This direct sale is usually also equipped with explanation or demonstration of products by a seller directly. Direct Seller is a person who is a member of the distribution system of a direct selling company.

A direct seller may be an independent commercial agent, an independent contractor, an independent dealer or distributor, a deputy employed by a company or an independent, a franchise holder or the like. In Indonesia there is an association for direct sellers called the Direct Selling Association of Indonesia, which is a national association of direct selling companies representing the interests of the direct selling industry in Indonesia. Every company that runs direct sales must be registering direct selling company in Indonesia.

The code of conduct governing direct sales is a worldwide code of ethics issued by the World Federation of Direct Selling Associations, for members of the national direct sales association incorporated in the WFDSA. This code of ethics concerns the relationship between direct sales companies and direct sellers on the one hand. Another code of ethics is between the consumer and also between the direct selling company with independent members and independent candidates.

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In addition, it is also the direct selling company itself. This Code of Conduct aims to provide satisfaction and protection to all interested parties to promote healthy competition within the framework of a free enterprise system. Another goal is to improve the general image of direct sales activities.

This code of ethics becomes a self-regulating tool in the direct selling industry. However, this code of ethics is not a law, and obligations are levied and demand a degree of ethical behavior that goes beyond the demands of applicable legal requirements. Not obeying does not incur liability in the face of civil law.

However, with the termination of its membership from the Direct Selling Association of Indonesia, the company is no longer bound by this code of ethics, but its provisions will still apply to events or transactions that occurred during the company as a member of the Direct Selling Association of Indonesia. This code contains ethical standards of conduct for direct sales companies and direct sellers. APLI may change this standard provided that the substance of the code of conduct is maintained or maintained as required by national law.

In the process of direct selling, sales involve contacting potential customers to offer and demonstrate products, receive orders and deliver or deliver goods and collect payments. Then, there is also the term order form i.e. various things included in printed or written orders, receipts and letters of agreement. There is also a recruitment activity that is an activity conducted with the aim of inviting someone to become a direct seller. Every company in direct sales that operate must follow the procedure for registering direct selling company in Indonesia.

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This type of direct selling company must have a business license. In accordance with the provisions of article six in the law applicable in Indonesia, the direct sales company must have SIUPL and apply throughout the territory of the Republic of Indonesia. SIUPL validity period for new Companies conducting trading business activities with Direct Selling system is provided for one year. For the next SIUPL validity period of five years and may be renewed each time for the same period, if the performance evaluation result of the Company is considered good.

The SIUPL extension is filed within two months before the SIUPL term expires. The Minister has the authority to regulate trading business activities with direct selling system. In addition, the Minister delegate authority to SIUPL to the Director General of Domestic Trade as Acting Publisher SIUPL.

Request for registering direct selling company in Indonesia will gain SIUPL submitted to the Officer Publisher SIUPL through the Director of Business Development and Corporate Registration by filling out the Application Form Direct Sales Business License “SIUPL” Model A. The company that has SIUPL obliged to register the company in list of companies as referred to in Act Number 3 of 1982 concerning Obligation of Company Register.

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SP-SIUPL must be signed on the seal sufficiently by the Owner or President Director or Corporate Responsible Person. For the maintenance of the SP-SIUPL conducted by a third party power of attorney must be attached sufficiently stamped and signed by the owner or Managing Director or Corporate Responsibility. In the preparation of SP-SIUPL need to be attached documents as follows:

  1. Copy of Deed of Establishment and Decision Letter of Legal Entity.
  2. Copy of Registration License and Technical Permit from the Authorized Agencies on goods or services sold.
  3. Copy of Industrial Business License if the company doubles as a producer.
  4. Copy of Contract of Cooperation or Appointment if the company obtains goods or services from producers or suppliers.
  5. Copy of Identity Card of the Company’s Board of Directors and Commissioners.
  6. Brochures, leaflets or catalogs of goods or services used.
  7. List prices of goods or services.
  8. Marketing Plan.
  9. Code of Ethics and Company Regulations.
  10. Agreement Plan or Registration Form of Direct Sales Company Membership.
  11. Photo Owner or Managing Director or Corporate Responsibility 4×6 cm size of 2 sheets. All requirements are required for registering direct selling company in Indonesia.

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