Herbalife Ltd. said over the weekend that it has secured a direct-selling license from China’s Ministry of Commerce.

The license is a big step for the Los Angeles-based supplement maker, because the newly granted license allows Herbalife distributors to conduct business outside of the existing 42 stores Herbalife operates in China. There are less than 20 companies, including Avon Products Inc. and Nu Skin Enterprises Inc., that have licenses to sell products outside of a retail location in China, Herbalife said.

Herbalife sells more than 30 products in China and operates a manufacturing facility in Suzhou. It reported $38.2 million in sales in the country during the fourth quarter of 2006.

Shares in Herbalife were up 14 cents to $39.74 in afternoon trading Monday on the New York Stock Exchange.