Network Marketing (MLM)
Recruiting distributors who earn commissions from sales and downline activity.
An AJL license (Lesen Jualan Langsung) is the official direct selling licence Malaysia requires
under the Direct Sales and Anti-Pyramid Scheme Act 1993, issued by the Ministry of Domestic Trade and Cost of Living (KPDN).
If you're planning to start a direct selling or MLM business in Malaysia, you're legally
required to obtain this AJL license before you launch — operating without one is a criminal offence.
Legal Requirement
Operating a direct selling or network marketing business in Malaysia without a valid AJL licence is a criminal offence under the Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500). Don't risk it — get licensed first.
AJL stands for Lesen Jualan Langsung (Direct Selling License) issued under the Direct Sales and Anti-Pyramid Scheme Act 1993 (Akta 500). It is the mandatory operating licence for any company conducting direct selling, network marketing, or MLM activities in Malaysia, regulated by KPDN.
RM 34.4B
Malaysia Direct Selling Industry Revenue (2024)
If your business model involves any of the following, you are required by law to hold a valid AJL license:
Recruiting distributors who earn commissions from sales and downline activity.
Selling products or services directly to consumers outside a fixed retail premises.
Home demonstration or group sales events with structured product presentations.
Online direct sales with distributor referral commissions tied to transactions.
Binary, Unilevel, Matrix, or Hybrid compensation plans of any configuration.
Any company operating structured direct distributor networks in Malaysia.
Navigating KPDN approval requires strict adherence to legal compliance, financial minimums, and documentation standards. Here is how the process works:
Your business must be incorporated as a Sdn Bhd (Private Limited Company) in Malaysia before applying.
Company registration certificates, director particulars, business plan, product information, and your full compensation plan.
KPDN scrutinises your MLM compensation plan to ensure income is primarily derived from genuine product sales — not recruitment fees.
Via the MyKPDN portal or in person at KPDN offices. A processing fee is payable at submission.
KPDN officers review your submission and may call your directors for an interview or clarification session.
Upon successful review, your AJL direct selling license Malaysia is issued — typically valid for 1 year, renewable annually.
Prepare the following document categories before submitting your application to KPDN. Incomplete submissions will delay processing.
Transparent breakdown of official government fees, renewal deadlines, and expected processing timelines.
Key Differences
From initial pre-application advisory to system integration and annual renewal, we manage the entire licensing journey.
Assess your business model for AJL eligibility
Design a KPDN-compliant MLM plan from day one
Prepare and organise your full application package
Verify product registrations and approvals
Submit on your behalf via MyKPDN portal
Manage all follow-up queries and interview preparation
Ensure your system is ready to go live upon licence approval
Never miss a renewal deadline
Everything you need to know about AJL licensing in Malaysia.