How to Check if an MLM Company Is Licensed by KPDN
Updated: 12 June 2026
Before you join any multi-level marketing or direct selling company in Malaysia, the most important check is whether it holds a valid KPDN license. This guide explains how to check if an MLM company is licensed by KPDN, what each license status means, and what to do when a company cannot be verified.
What a KPDN direct selling license is
KPDN (Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup), formerly KPDNHEP, regulates direct selling under the Direct Sales and Anti-Pyramid Scheme Act 1993. Any company that sells products or recruits members through a direct selling or MLM model must hold a valid direct selling license, usually shown as an AJL number.
A license is not a promise that a company is a good opportunity. It only confirms the business is registered and legally permitted to run direct selling. Operating without one is a criminal offence.
Step 1: Search the official KPDN register
KPDN publishes a public list of companies that hold an active direct selling license. You can view it on the official KPDN direct selling list. Search for the registered company name, not the brand name, because licenses are issued to the legal entity (for example, the name ending in Sdn. Bhd.).
If the company appears with an active status, it is currently licensed. If it is missing, expired, or cancelled, treat that as a serious warning sign.
Step 2: Verify the company on CheckMLM
CheckMLM mirrors the KPDN register and adds context the official list does not show. Search the company in our company directory to see its live license status, an AI safety score, community reports, and product registration details in one place.
We also keep a running list of blacklisted, revoked, and expired companies so you can quickly see whether a company has lost its license or been flagged for serious concerns.
What each license status means
- Licensed: the company holds an active KPDN direct selling license and is legally permitted to operate.
- Expired: the license has lapsed and is not currently active. The company may renew it, but until then it is not licensed.
- Revoked: KPDN has cancelled the license. The company is no longer permitted to run direct selling.
- Unlicensed: no valid license was found. Running direct selling without one is an offence under the 1993 Act.
What to do if a company is not licensed
If a company has no valid license and is still recruiting members or selling through a distributor network, do not pay any joining fee. You can report it to KPDN through the hotline 1-800-886-800 or the e-Aduan portal, and file a community report on CheckMLM to warn others.
Frequently asked questions
Is it illegal to join an unlicensed MLM in Malaysia?
Running a direct selling business without a KPDN license is an offence under the Direct Sales and Anti-Pyramid Scheme Act 1993. Members of an unlicensed scheme risk losing their money and may be taking part in an illegal pyramid scheme.
What is an AJL number?
AJL (Akta Jualan Langsung) is the reference for a company's direct selling license issued by KPDN. A legitimate direct selling company should be able to show a valid AJL license number.
Does a KPDN license mean the company is safe?
No. A license only confirms the company is legally registered for direct selling. It does not mean the opportunity is profitable or low risk. Always review the compensation plan and CheckMLM's safety score before joining.
How often is the KPDN list updated?
KPDN updates its register periodically. CheckMLM re-checks license statuses on a regular schedule, but always confirm the latest status on the official KPDN list before making a decision.
Can a company be licensed but still risky?
Yes. Some licensed companies still carry high risk because of expensive joining costs, aggressive recruitment, or thin product value. Being licensed and being a safe opportunity are two different things.
Useful links
These guides are for educational purposes only and are not legal or financial advice. Always verify a company on the official KPDN register before making any decision.