Unlock your options — consult with an expert today
Mirsatori helps companies navigate the legal landscape of direct selling, affiliate marketing, and MLM worldwide, with a particular focus on Asia and the Middle East.
With over 10 years of experience, our specialists proactively safeguard your business, operational freedom, and reputation by preventing issues before they escalate. Whether you are expanding into new markets, protecting your distributor network, or resolving disputes, our team ensures you remain fully compliant and on the right side of the law—applying tailored, sector-specific legal strategies for cryptocurrency, Forex, and iGaming.
Get a comprehensive legal guide to the regulatory requirements applicable to your MLM company or affiliate program
Owners of MLM companies expanding into new jurisdictions or operating across multiple countries simultaneously. You need to properly structure compensation plans to avoid classification as a pyramid scheme, obtain the required licenses, and ensure protection against regulatory enforcement.
Owners of affiliate programs operating in high-risk sectors. You need to ensure compliance with regulatory requirements in the UAE, Asia, Europe, and the United States, review marketing materials for misleading claims, and protect your business against regulatory enforcement related to culturally sensitive advertising.
Companies operating global distributor networks and facing tax complexities (VAT, GST), distributor or consumer claims, and regulatory requirements related to disclosures and training. You need legal protection in disputes and ongoing advisory support to remain compliant with evolving legislation.
Schedule a consultation. We will analyze your current structure, identify regulatory and legal risks, and provide a clear legal protection strategy for your MLM company or affiliate program.
Unlock your options — consult with an expert today
Business structuring and licensing
We design a robust legal operating model and secure the required licenses across multiple jurisdictions. We build a solid foundation for compliant operations, tailored to the specific characteristics of each market.
Regulatory compliance
We ensure end-to-end compliance and provide ongoing guidance to help you adapt to legislative and regulatory changes. We reduce legal exposure and strengthen your competitive position.
Contract drafting and review
From affiliate agreements to distributor contracts, we draft and review documentation that protects your interests, prevents disputes, and aligns with international standards.
Legal review of content and advertising
We assess marketing materials for legal and regulatory compliance and support cultural and jurisdiction-specific adaptation.
Dispute resolution and enforcement defence
We protect your business internationally against claims, regulatory actions, and distributor disputes. We apply advanced negotiation strategies and structured resolution tactics.
Tax and financial compliance
We guide you through the complexities of VAT, GST, and cross-border taxation. We ensure commission payments and financial flows are correctly structured, tax-compliant, and audit-ready.
Each jurisdiction represents a complex legal and regulatory framework, and failure to comply with even a single requirement may result in financial penalties, operational suspension, or criminal liability.
The UAE
Operating without the required commercial license or media regulator approval may trigger fines of up to AED 1,000,000. Non-compliant advertising can lead to content blocking and administrative sanctions. Concurrent oversight by multiple authorities increases compliance complexity.
Consequences:Business closure, visa cancellation, deportation of foreign owners, and freezing of bank accounts.
We secure the necessary licenses, conduct legal and cultural compliance reviews of marketing campaigns, and represent you in regulatory inquiries and investigations.
Malaysia
Direct selling companies require a government-issued license. Compensation structures that resemble pyramid schemes are subject to heightened scrutiny. Unsubstantiated income claims may trigger regulatory action and fines.
Consequences:Criminal prosecution, license revocation, and confiscation of distributor commissions.
We prepare and file licensing applications, structure compliant compensation plans, and draft distributor agreements aligned with local requirements.
Vietnam
MLM businesses must be registered with the Ministry of Industry and Trade (MOIT) and comply with strict capital and reporting requirements. Distributor training and a code of conduct are mandatory. Non-compliant commission structures can trigger regulatory enforcement.
Consequences:Business suspension, license revocation, significant fines, and potential criminal exposure.
We guide you through MOIT approvals, structure compliant distributor systems, and provide legal support during inspections and regulatory reviews.
India
Direct selling entities must register in accordance with the Consumer Protection (Direct Selling) Rules, 2021. Pyramid schemes are strictly prohibited. Misleading income claims may result in litigation, while incorrect GST classification of commissions can lead to tax disputes and regulatory action.
Consequences:Financial penalties, criminal charges, tax liabilities, and operational restrictions, including freezing of business activities.
We ensure full compliance with the Direct Selling Rules, prepare legally robust contracts, and manage GST compliance and tax structuring.
Indonesia
Strict regulatory oversight applies to misleading marketing and income claims. MLM companies are frequently investigated for potential pyramid scheme characteristics. Strong statutory protections for distributors increase the likelihood of disputes and regulatory scrutiny.
Consequences:License revocation, civil litigation, and potential criminal liability for directors and executives.
We design compliant MLM structures, prepare distributor agreements aligned with local law, and provide legal representation in disputes and regulatory proceedings.
Brazil
Distributor claims related to unfair contractual terms or non-payment of commissions. Regulatory exposure arising from misleading advertising. Complex tax obligations associated with MLM and affiliate commission payments.
Consequences:Significant fines imposed by consumer protection authorities, operational suspension, freezing of bank accounts, and costly litigation.
We localize contracts under Brazilian law, structure compliant compensation models, and provide guidance on tax compliance and reporting requirements.
Japan
Aggressive recruitment practices are prohibited under consumer protection laws. Misleading claims regarding products or income are strictly regulated. Mandatory cooling-off rights for consumers must be properly implemented and respected.
Consequences:Cease-and-desist orders, administrative fines for unlawful recruitment practices, and consumer class action litigation.
We draft contracts compliant with Japanese law, review marketing and recruitment practices, and implement legally compliant disclosure and consumer protection protocols.
China
Only government-approved companies are permitted to conduct direct selling activities. MLM compensation plans are closely scrutinized for pyramid scheme characteristics. Foreign companies face significant licensing barriers and strict data localization requirements.
Consequences:Immediate shutdown of unlicensed operations, asset confiscation, blacklisting within Chinese markets, and potential criminal liability for executives.
We assist in navigating licensing requirements, adapt MLM structures to comply with Chinese regulations, and ensure advertising and operational compliance.
Germany
Aggressive distributor recruitment may be classified as unfair competition. Misleading income claims are strictly prohibited. Stringent GDPR requirements apply to the collection, processing, and storage of personal data.
Consequences:Cease-and-desist orders from competition authorities, substantial GDPR fines, and civil litigation.
We implement compliant recruitment practices, review marketing materials for EU regulatory compliance, and develop GDPR-compliant privacy and data protection frameworks.
The United States
MLM and affiliate companies may be classified by regulators as unlawful pyramid schemes. Class action lawsuits from distributors or consumers are common. Misleading income claims may trigger enforcement actions by federal and state regulatory authorities, including the Federal Trade Commission (FTC).
Consequences:FTC enforcement actions resulting in business shutdowns (as in the AdvoCare case), multibillion-dollar settlements and consumer restitution orders, and permanent injunctions restricting or prohibiting business operations.
We design FTC-compliant MLM and affiliate structures, review marketing and income representations for regulatory compliance, provide defence in class action litigation, and ensure multi-state regulatory compliance.
Mirsatori's team examines the reasons behind the rush of European HNWIs to Dubai, from low taxes, safety, business opportunities, and more. Below, we explore 5 of the most important and compelling...
According to Andris Kaushelis, General Manager of the international law firm Mirsatori, modern legal mechanisms allow you to build an asset ownership structure that only shares information with...
Spain is one of the few countries where the government has officially defined the term “innovation” and incorporated it into Law 28/2022, “On the Development of the Startup Ecosystem.”
We operate across 10 key jurisdictions worldwide, with a primary focus on Asia and the Middle East: United Arab Emirates, Malaysia, Vietnam, India, Indonesia, Brazil, Japan, China, Germany, and United States. Our specialists have more than 10 years of experience and possess a deep understanding of local legislation and regulatory practice in each of these jurisdictions.
We provide business structuring and licensing, regulatory compliance support and ongoing legal advisory, preparation of affiliate and distributor agreements, legal review of content and marketing materials, representation in litigation and dispute resolution, and tax advisory services (including VAT, GST, and cross-border taxation).
The consequences depend on the jurisdiction. In the United Arab Emirates, penalties may include fines of up to AED 1,000,000, visa cancellation, and deportation. In Malaysia, companies may face criminal prosecution and license revocation. In Vietnam and China, authorities may impose immediate business suspension and asset confiscation. In the United States, the Federal Trade Commission may issue shutdown orders accompanied by multibillion-dollar settlements.
MLM compensation structures must comply with the legal requirements of each jurisdiction. In the United States, models are evaluated by the Federal Trade Commission. In Malaysia, they are regulated under the Direct Sales and Anti-Pyramid Scheme Act. In China, regulators assess whether compensation models exhibit characteristics of prohibited pyramid activity. We design compensation structures in accordance with applicable regulatory standards and prepare supporting documentation to ensure compliance during regulatory reviews.
Regulatory authorities typically do not provide advance warning before initiating enforcement actions. Most MLM and affiliate marketing companies become aware of potential violations only after receiving formal regulatory notices, legal claims, or bank account restrictions. Each day of delay increases the risk of financial penalties, operational suspension, or legal liability.
Schedule a meeting with our specialists, in-office or online, and receive a tailored case analysis, a clear cost estimate, and the best solution to achieve your goals.
Fill out the form to schedule a meeting in the office or online
Unlock your options — consult with an expert today
+34 69 060 46 73
+382 69 704 986
+971 52 96 46 823