KATHMANDU: Himalayan News Service Kathmandu, March 10 Nepali network marketing companies seem reluctant to follow government rules and regulations. The Ministry of Commerce and Supply (MoCS) had directed the companies to deposit Rs 2.5 million with the Department of commerce (DoC) as security, giving them a 35-day deadline in January 31. Not one company has deposited the guarantee amount of Rs 2.5 million with the department or taken operating license within the deadline. “DoC is not satisfied with the response,” said Kamal Bahadur Thapa, an officer at the department. The department is considering legal action against those companies which fail the deadline. “DoC will not tolerate those disobeying the law,” he said. However, the department is hoping that responsible companies will follow the Network Marketing Business (NMB) directives 2010 and deposit the security money as soon as possible. “We are expecting the major network companies will come to us within a week,” he added. Network marketing is a business model based on a company distributing products and services through a network of independent contractors. It is also known as multi-level marketing. Around 15 companies have contacted DoC for the process. They have taken the application forms but have not submitted them yet, Thapa said. As per the NMB directives, network companies operating in Nepal must deposit the security amount within 35 days of the enforcement of the directive. However, DoC lacks adequate data on networking companies operating in Nepal. The department is preparing a list of networking companies to take further action. DoC has a separate mechanism — Networking Marketing Central Monitoring Committee — under the director general. Networking companies must also register with the company registrar office and revenue office before applying for operating licence from the department. Thereafter, the department will issue the license to networking companies under clause 6 of the directives. “The security deposit is a must to get operating licence,” he said. The globally renowned networking marketing companies are Amway, Shaklee, Mary Kay, Tupperware and Avon. Among them, consumer products manufacturer Amway has a strong presence in Nepal since many years. Several Nepali companies also have engaged in the business of late. Nepali network marketing companies seem reluctant to follow government rules and regulations. The Ministry of Commerce and Supply (MoCS) had directed the companies to deposit Rs 2.5 million with the Department of commerce (DoC) as security, giving them a 35-day deadline in January 31. Not one company has deposited the guarantee amount of Rs 2.5 million with the department or taken operating license within the deadline. “DoC is not satisfied with the response,” said Kamal Bahadur Thapa, an officer at the department. The department is considering legal action against those companies which fail the deadline. “DoC will not tolerate those disobeying the law,” he said. However, the department is hoping that responsible companies will follow the Network Marketing Business (NMB) directives 2010 and deposit the security money as soon as possible. “We are expecting the major network companies will come to us within a week,” he added. Network marketing is a business model based on a company distributing products and services through a network of independent contractors. It is also known as multi-level marketing. Around 15 companies have contacted DoC for the process. They have taken the application forms but have not submitted them yet, Thapa said. As per the NMB directives, network companies operating in Nepal must deposit the security amount within 35 days of the enforcement of the directive. However, DoC lacks adequate data on networking companies operating in Nepal. The department is preparing a list of networking companies to take further action. DoC has a separate mechanism — Networking Marketing Central Monitoring Committee — under the director general. Networking companies must also register with the company registrar office and revenue office before applying for operating licence from the department. Thereafter, the department will issue the license to networking companies under clause 6 of the directives. “The security deposit is a must to get operating licence,” he said. The globally renowned networking marketing companies are Amway, Shaklee, Mary Kay, Tupperware and Avon. Among them, consumer products manufacturer Amway has a strong presence in Nepal since many years. Several Nepali companies also have engaged in the business of late.