Czech Republic

CZECH REPUBLIC

CZECH REPUBLIC

COMPANY DETAILS

Amway Ceska Republika, s.r.o.

Nad Kazankou 29
171 00 Praha 7
Czech Republic

Phone: +-420-283017120
Fax: +-420-283017125

www.amway.cz (Public & Distributor Website/MultiLingual)

cz_obchodni@amway.com (Email)

Opened March 1994

 

Plan Basics

Overview

Purchasing Products
All Amway Business Owners, Member Plus and Members may purchase products directly from Amway.

Bonus Payments
Bonuses will be paid directly to all Amway Business Owners who have earned the bonus. Bonus payments will be paid by a bank transfer or to the Amway Business Owner’s Amway account.

PV/BV Transfers
PV/BV transfers are not available.

Rebate
Members Plus can receive a rebate, up to a total maximum of 50% based on his personal net purchase.

Consolidated Line of Sponsorship (CLOS)
Twelve Eastern European Amway markets: Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia, Turkey and Ukraine, are combined into a Consolidated Line of Sponsorship (CLOS) Region. This will allow all current and new ABOs and Members Plus to personally sponsor within and into each of these countries. Option of international sponsoring between the countries within CLOS Region is discontinued. (All businesses established before August 31, 2003 will continue to count according to international sponsoring rules.) International sponsoring from outside the CLOS Region continues to be available. If an ABO has no business in any of the countries that make up the CLOS Region, he will be allowed to establish one new business in the CLOS Region. An ABO or Member Plus who already has at least one business in the CLOS region will not be allowed to establish another one.

Performance Schedule

PV Performance Bonus
10000             21%
7000               18%
4000               15%
2400               12%
1200                9%
600                  6%
200                  3%

PV/BV Ratio
The average PV/BV ratio for Amway products as of March 2015 is 42.663

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30%.

Starter Kit Purchasing
Amway Business Owner/Member Plus may purchase a Opportunity Kit directly from Amway Business Owners or Member Plus. They must complete and sign an Amway Application form. The form is sent to Amway Czech Republic for processing. The Starter Kit price is automatically added to their first purchase.

An online sponsorship is available on www.amway.cz site. This function gives an opportunity for ABO’s and Member Plus´s to offer their friends and acquaintances to become an Member Plus through online registration. Online registration process can be initiated by Sponsor or by New Applicant.

Online registration by Sponsor
New applicants may register via internet using an email invitation sent by ABO or Member Plus. Completed online form is sent to Amway. Amway sends back on his/her e-mail address via online Member Plus contract number and PIN. The new Member Plus is registered at that moment and she/he can buy products online via internet. The Starter Kit will be automatically included in the first order. The Application Form must be printed and signed by the applicants (applicant and co-applicant – if is available) and submitted to Amway Czech Republic within the first 30 days. If the new applicant forgets to send it in, she/he will receive a reminder so that she/he can follow up.

Online self-registration
Potential New Applicant may start the process without ABO/Member Plus participation. He/she needs to know Sponsor’s ABO/Member Plus number and the Last name. Then he/she completes the online form. Completed online form is sent to Amway. Amway sends back on his/her e-mail address Member Plus contract number and PIN. The new Member Plus is registered at that moment and she/he can buy products online via internet. The Starter Kit will be automatically included in the first order. The Application Form must be printed and signed the applicants (applicant and co-applicant – if is available) and submitted to Amway Czech Republic within the first 30 days. If the new applicant forgets to send it in, she/he will receive a reminder so that she/he can follow up.

A new Member Plus can purchase Amway products through any convenient sales channel after his registration is confirmed in Amway database.
The Amway Starter Kit will be added to the first order automatically.

Please note! With online registration it is not necessary to buy the Opportunity Kit.

Cost of Starter Kit

- Starter Kit:
739.00 Czech Republic Koruna (CZK) (including VAT)

Sponsoring
Personal (local business)/International and Foster:

All new applicants are introduced to Amway business by a Sponsor. Foreign applicants (except countries within CLOS) may Internationally Sponsor and must have a local (Foster) Sponsor. If the new applicant and his International Sponsor do not know any potential local (Foster) Sponsors, they are advised to contact the local affiliate (Amway Czech Republic) for assistance.

Business Type
In relation to the IMC (Amway Business Owner, Member, Client) model, these new classifications are available (implemented in June 2000):

Amway Business Owner
In the position of an Amway Business Owner, you can use the many benefits and opportunities to earn income. At the same time, you are entitled to register new Amway Business Owners and Members Plus and supply products to Clients.

Member Plus (M+)
This status offers significant benefits to anyone who wishes to know more about the Amway business and products. A Member Plus purchases products for their own consumption at the same price as an Amway Business Owner, and is involved in a Discount program.

Member
This status can, after paying a small annual fee, buy products at Amway Sales prices and gain other benefits.

Client
These are customers who purchase products on an ongoing basis.

Marketing Advisor
A status which allows European Amway Business Owners to sponsor and purchase products for personal consumption in other Marketing Advisor Markets (MAM) without maintaining a formal, legal presence there while maintaining the same benefits of the Sales and Marketing plan as a multiple business. It does not provide for combining volumes between markets for purposes of bonus calculations.

Eligibility:
Platinum Pin and above in any of the markets listed below. Diamond Pin in any existing Amway market that has multiple businesses in any of the markets participating in the program.

Participating Markets:
If you have a traditional Amway Business Owner business and local address in one of the below countries (home market) you can have businesses in the remaining countries (marketing advisor countries) as a Marketing Advisor.

Austria, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany, United Kingdom, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Benefits:
- Receive individual MAM commission checks in your home country in home currency
- Minimal business and tax registration and reporting requirements
- Maintain and develop lines of sponsorship within each market
- Renewing distributorship in the home country will automatically renew your Marketing Advisor Businesses, although an annual Amagram subscription fee will be charged for each market
- Amagrams, LOS information, bonus statements will be mailed directly to your home market address
- You will continue to be recognised in the Marketing Advisor Markets for your achievements

Activities Allowed as a Marketing Advisor:
- Sponsoring & Demonstration of Sales and Marketing Plan
- Speaking Engagements
- Product purchase for personal use only (not allowed in Germany, Switzerland, Italy, France, Portugal or Spain)

Activities not permitted as a Marketing Advisor:
- Retailing product
- Travel to the market more than 8 out of 90 days

Establish a Second Business

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

Amway Business Owners may establish a second business in the Czech Republic. The most common form of ownerships of independent businesses are: Sole Proprietorship, Partnership and Limited Liability Company. You should consult with a local attorney to obtain the best business entity to accomplish your business goals.

Visa Requirements
Any foreigner intending to do business in the Czech Republic as a Sole Proprietorship is required to obtain a long-term Residency Permit (Completion time: Three to Four months, Fee: 2,500 CZK) before the trade authorities issue a trade certificate.

For foreigners who intend to utilize the Partnership business entity, a long-term Residency Permit must be obtained for the partner who is registered in the commercial register. A Work Permit would only be required for a foreign employee working in the Czech Republic for the Partnership. However, a partner may work in the Partnership as a co-owner and not be required to obtain a Work Permit.

For foreigners who intend to utilize the Limited Liability Company business entity, a long-term Residency Permit must be obtained for the Executive Directors who are foreigners, but is not needed for owners (owner of business interest) of the company. Work Permits are only needed for foreign employees of the Limited Liability Company, but not for the owners (owner of the business interest) of the company working in the Czech Republic. The Consulate for the Czech Republic in your country of residence should be contacted in advance to obtain a general idea of the appropriate immigration requirements for your business purposes.

Laws relating to visa requirements are constantly changing. Amway Business Owners must consult experts in the country to obtain advice on appropriate immigration requirements. Consulting an expert is also important, if you do not intend to reside there.

Amway Business Owner Registration Requirements
There are various registration requirements for a Business Owner in the Czech Republic, which include a local address, local bank account and the following:

1) Trade Register (registration fee – 1,000 CZK, Amendment - registration fee - 500 CZK). Completion time: 5 business days

2) Commercial Register (registration fee 5,000 CZK. Other changes are subject to a fee of 1000 CZK. Completion time: 5 business days

3) Financial Office (no fee required). Completion time: Within 30 days after obtaining the trade license or commencement of the business activities

4) VAT Registration (no fee required). Completion time: Within 15 days after the end of the month when the limit of turnover was exceeded

5) Social Security (no fee required). Completion time: By the 8th day of the calendar month following the month during which the business activities were commenced

6) Health Insurance Registration (no fee required). Completion time: Within 8 days after commencement of business activities

Ordering

Mail: Amway Ceska republika, s.r.o.
Nad Kazankou 29
171 00 Praha 7
Czech Republic

Fax:
+420 283017125
Monday through Thursday
8:00 to 16:00
Friday
8:00 to 13:00
For mail and fax orders completed ordering forms are required:
- SKU 104695 for individual order
- SKU 0012 for combined order

E-mail: cz_objednavky@amway.com
Complete e-mail order form is required. Amway Czech Republic can provide Amway Business Owners with e-mail order forms based on the Amway Business Owner’s request.

Amway online - Electronic business and shopping opportunity
www.amway.cz

No Product Selection Centers are available. Delivery of the Amway products is through the mail home delivery system only.

Payment Methods

- Bank transfer
- Postal draft
- Direct debit
- Positive balance in the distributor’s accounts receivable account with Amway Czech Republic
- Cash on delivery
- Credit Card

If the distributor does not use direct debit or cash-on-delivery, a document of payment has to be attached.

Bank account/postal draft:

CITIBANK  account No. 2063350103/2600

Returns/Refunds

Starter Kit returns will be accepted 180 days from date of purchase.

Products may be returned under the Customer Satisfaction Guarantee policy. 100% Satisfaction Guarantee is unlimited for every products with PV/BV except for durable products (cookware, eSpring) and Starter Kit- Tier 2 (180 days from date of registration). 100% Satisfaction Guarantee is not provided for products with no PV/BV. An original copy of the purchase invoice of the Amway Business Owner, Members Plus or Member is required. In case of the non-Amway enduser (customer), a customer receipt is required.

Access Information

- Phone: +420 283017120
- Fax: +420 283017125
Monday through Thursday
8:00 to 17:00
Friday
8:00 to 14:30
Saturday and Sunday closed
- LOS map: upon request, for Platinum automatically
- Amway online - Electonic business and shopping opportunity, www.amway.cz
24 hours a day
7 days a week

Receive Bonus Payment
Amway Czech Republic transfers bonus payments to the Amway Business Owner’s bank account designated on the application or to their accounts receivable account.

Renew
Please note: Renewal is only necessary in one market for CLOS (Croatia, Slovenia, Slovakia, Czech Republic, Turkey, Poland (Estonia, Lativa, and Lithuania), Romania, Hungary, Ukraine)

Cost/Timing:

Regular renewal for ABO/Member+
Cost: 680,00 Czech Koruna (CZK)
Timing: September 1 - December 31

Late renewal for ABO/Member+
Cost: 850,00 Czech Koruna (CZK)
Timing: January 1 - August 31

Renewal for Member (M)
Cost: 240,00 Czech Koruna (CZK) or minimum purchases in amount
(CZK) 5 500,00 within calendar year
Timing: until December 31

Renewal Methods:
- Together with product order or separately (not available for orders which are paid with payment method cash on delivery)
- Mail:
Amway Ceska republika, s.r.o.
Nad Kazankou 29
171 00 Praha 7
Czech Republic
- Fax: +420 283017125
- E-mail: cz_objednavky@amway.com
- Amway online: www.amway.cz

Payment Methods:
- Check
- Bank transfer
- Postal draft
- Positive balance in the ABO's accounts receivable with Amway Czech Republic.

We always require a copy of payment where number and name of distributorship are indicated. The copy of payment should be faxed or mailed to Czech headquarter.