What kind of company is Sansheng Group? Is it legal?

Sansheng Group is a pyramid scheme company, which is illegal. According to the French Open, Sansheng Company has a direct selling license, but its essence is pyramid selling, which is illegal. The establishment of a limited liability company by law shall meet the following conditions according to Article 23 of the Company Law of People's Republic of China (PRC): the number of shareholders shall meet the quorum; The capital contribution subscribed by all shareholders in accordance with the Articles of Association; Shareholders jointly formulate the Articles of Association; Having a company name and establishing an organization meeting the requirements of a limited liability company; There is a company residence. MLM refers to the behavior that organizers and developers illegally acquire wealth through developers or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the pioneers.