Pyramid-style plans are prohibited
Plans that pay mainly for joining fees or recruitment fall foul of the law, yet many off-the-shelf MLM scripts are built exactly that way.
In Nepal, selling goods directly needs a licence and pyramid-based business is outlawed, so the software behind a distributor network has to show that every rupee earned traces back to goods sold. Sysfo writes direct selling, dealer and distributor systems for firms in Kathmandu, Pokhara, Biratnagar and the rest of Nepal, working online from India.
The reality in Nepal
Nepal has seen networking companies collapse and the public is wary of anything that looks like a chain scheme. Honest operators need systems that make their sales visible and their payouts explainable.
Plans that pay mainly for joining fees or recruitment fall foul of the law, yet many off-the-shelf MLM scripts are built exactly that way.
After well-publicised scheme failures, buyers in Kathmandu and the Terai want proof that a distributor sells real goods.
Sales are billed in one system and incentives worked out in a spreadsheet, so nobody can reconcile them at year end.
Field staff in hill districts work on patchy mobile data, and heavy apps simply fail to load an order form.
Dealers pay by QR or wallet, and accounts staff key every eSewa or bank receipt into the system by hand.
Business runs on Bikram Sambat months and a fiscal year beginning in Shrawan, but imported software only knows the Gregorian calendar.
What we build for Nepal
Choosing an MLM software company in Nepal starts with one question: what will it refuse to build? We do not build recruitment-fee or pyramid-style schemes that Nepal's law prohibits. We build tools for licensed direct sellers, manufacturers with dealer and retailer schemes, and distributors who pay incentives on goods actually sold.
Onboarding, documents, territories and approvals for distributors, dealers and retailers.
Read more about Distributor and dealer managementNPR prices, configurable VAT on bills, wallet balances and payouts reconciled in one ledger.
Read more about NPR billing and financeCommissions and targets calculated only from billed, delivered and unreturned goods.
Read more about Sales-linked incentivesNepali and English screens, with Bikram Sambat dates offered as a customisation.
Read more about Nepali website and appVolume slabs, loyalty points and scheme payouts for manufacturers selling through traders.
Read more about Dealer and retailer scheme automationRewards built on repeat orders of consumable goods, never on sign-up fees.
Read more about Repurchase plan software
Licence-ready distributor records
Under Nepal's Direct Sales of Goods (Management and Regulation) Act, 2074 (2017), direct selling needs a licence from the Department of Commerce, Supplies and Consumer Protection, and pyramid-based business is prohibited. Software cannot grant or protect a licence, but it can keep your records in order. Each distributor or dealer has verified identity documents, an agreement on file, a sponsor or territory, and a complete history of orders and payments.
Nepali rupee, VAT and payments
Every price, bill, wallet balance and payout is held in Nepali rupees, and VAT is added at whatever rate you configure, with your PAN or VAT number printed on each bill. Reports can follow Nepal's fiscal year, which starts in mid-July. Payment rails such as eSewa, Khalti, Fonepay QR or ConnectIPS are examples of what can be integrated through providers that offer merchant APIs, alongside ordinary bank transfers.
Commissions tied to goods sold
Nepal's law singles out arrangements such as compulsory paid subscriptions and forced package purchases as pyramid-based, so we design incentive engines around goods actually sold. Each commission line points to a billed order, and returns reverse the commission they generated. Joining fees, mandatory starter kits and income for recruitment alone are not features we build for Nepal; a written plan review flags them before any code is written.
Nepali language and low-bandwidth use
Head office can have the public site, product pages and distributor area turned into Nepali as a customisation, while English stays available for export partners. Dates can be shown in Bikram Sambat beside the Gregorian calendar. Pages stay light, images are compressed and the order form copes with slow mobile data, because a field agent near Pokhara or in the eastern hills should not need city broadband to book a sale.
What you get
Plan rules, NPR settings, Nepali text and payment options are agreed in writing, then tested with a sample network before any real distributor joins.
Monthly checks
Launch plan
How remote delivery works
Sysfo has no office in Nepal. Kathmandu is just fifteen minutes ahead of India, so our working days line up almost exactly, and support hours are agreed in the contract.
Before any demo we read your incentive plan and ask about your Department of Commerce licence, and we decline work that relies on recruitment income.
After a video walkthrough we settle NPR pricing, VAT, Nepali wording and wallet or QR rails, then send a written specification with a fixed quote.
Each Friday the Kathmandu or Lalitpur team gets new screens to try on a staging site and leaves comments there.
Payout dry runs, return and refund cases, tests on slow hill-district connections, and recorded lessons for accounts staff.
Go-live on hosting you approve, extra attention during the first incentive cycles, then help by phone, email and WhatsApp within contracted hours.
Engagement models
Nepali clients begin with a no-cost review of their incentive plan, and any build is then priced line by line before work starts.
Free
An honest look at whether your plan is product-based.
Fixed price
MLM.ERP set up with rupee billing, Nepali screens and your incentive rules.
From a quote
Built from scratch for dealer schemes or an unusual sales model.
Monthly retainer
Ongoing care for a distributor system already running in Nepal.
Why Sysfo
Our developers work from Lucknow and Mumbai, and a Belgian office looks after Europe. Nepal sits next door in distance and on the clock, and we are open about which plans we refuse.
If a plan pays for recruitment rather than sales, we tell you, and we do not build it for Nepal.
A fifteen-minute time difference means calls, fixes and payout days happen in shared hours.
We also build scheme software for manufacturers selling through dealers and retailers, not just direct sellers.
Apps and pages are designed for slower connections common outside the Kathmandu valley.
Your incentive plan stays private under an NDA if you ask, and a custom system's code becomes your property.
Our MLM.ERP base already runs distributor records, ledgers and reports, so budget goes on Nepali text, NPR and licence records.
Plans & locations
Explore each compensation plan in detail, or MLM software for your city in India and your country abroad.
FAQ
No, there is no Sysfo office in Nepal; the people building your system work from our Indian offices or our Belgian one. Nepali companies work with us online: screen-shared demos, scoping calls, a private test site for checking progress, installation over the internet and recorded tutorials, with phone, email and WhatsApp help in contracted hours. Directors who want an in-person meeting are welcome at our Lucknow office in Uttar Pradesh, a state that shares a border with Nepal.
Not in the sense the word usually carries. Nepal's Direct Sales of Goods (Management and Regulation) Act, 2074 (2017) permits direct selling of goods only with a licence from the Department of Commerce, Supplies and Consumer Protection, and it prohibits pyramid-based business, such as compulsory paid membership or recruitment for a fee. Penalties include fines and imprisonment. Treat this as a general summary rather than legal advice, and consult a Nepali lawyer.
We build systems where income comes from goods actually sold: retail margins, sales-volume incentives, repurchase rewards, and dealer or retailer schemes for manufacturers. We will not build joining-fee income, compulsory package purchases or recruitment bonuses for Nepal. Any MLM software company in Nepal should be willing to turn work down, and we would rather lose a project than build something the law prohibits.
Law-firm guidance on Nepal's direct selling rules reports that foreign investment is not permitted in the sector in practice, and that licensees must be companies registered in Nepal with minimum capital and a guarantee. Rules and practice change, so confirm ownership, capital and licence conditions with a Nepali lawyer before you commission any software.
eSewa, Khalti, Fonepay QR and ConnectIPS are examples of Nepali rails we could connect, as long as your company signs the merchant agreements and the provider gives API access for your use case. Bank transfer files remain the fallback. The final list is fixed during scoping, and each rail is tested on staging before distributors use it.
No. Nepal Rastra Bank has declared cryptocurrency transactions illegal in Nepal, so we do not offer crypto deposits, payouts or token plans to clients operating there. Your platform will run entirely on NPR, licensed wallets and bank transfers.
Distributor files contain citizenship documents, PAN numbers and bank details, which Nepal's Privacy Act, 2075 (2018) expects you to handle carefully. Only staff with the right role can open them, admin logins need a second factor, every view or change is logged, and on request we export or wipe that person's data. Retention and consent policies come from your legal adviser; the system enforces them.
The price follows your incentive rules, panel count, Nepali translation scope, wallet integrations and apps. Once we have reviewed your plan online at no charge, you receive a fixed quote broken down item by item, so nothing is uncertain before coding starts. Hosting and support carry separate quotes. If you also sell across the border in Bihar or Uttar Pradesh, our Patna and Lucknow pages describe that work.
Talk to us about Nepal
Share the goods you sell, how your distributors or dealers are rewarded now and which Department of Commerce licence you hold. Someone from our MLM team will write back within a working day to set up a video call on Nepal time.