17 networking firms register with DoC
KATHMANDU: Seventeen networking business companies (NBCs) have applied to the Department of Commerce (DoC) for operating license and each has deposited the security amount of Rs 2.5 million. The Ministry of Commerce and Supply (MoCS) had directed the companies to register themselves under Network Marketing Business (NMB) directives 2010 on January 31.
The country’s networking market is estimated to be around Rs 20-22 billion. All top three companies — Unity Life International Ltd, Best World Business Link (BWBL) and DXN International Nepal — have business over Rs 2 billion. NBCs have networks in towns and villages throughout the county.
“It is an encouraging response,” said Kamal Bahadur Thapa, inspection officer. “DoC will take legal action those violating or not obeying the directives.” Twenty NBCs had taken registration forms and only 17 companies have applied for operation license within the deadline — 45 days after enforcement of the directives.
Three networking companies — Gano Excel Pvt Ltd, Sahara World Net Pvt Ltd and Sahayog and Bikas Nepal — have
still not applied for operation license despite taking application forms. DoC is exploring the market to determine the actual status of NBCs for further action, according to Thapa. As per the NMB directives, NBCs operating in Nepal must deposit the security amount within 35 days and complete operation license process over the next ten days. Networking companies must also register with the company registrar office and revenue office before applying to the department for operating licence. Network marketing is a business model based on a company distributing products and services through a network of independent contractors.