The provisions of UAE Commercial AgencyLaw allow a foreign company to carry out its marketing and selling activities in the country without having a physical presence here. The UAE Commercial Agencies Law regulates the appointment of commercial agents, sales representatives, and distributors in the UAE.
Article 3 of the Federal Law No.18 of 1981-Commercial Agencies It is not permissible to practice any Commercial Agency work in the State unless for the one whose name registered in the Register of Commercial Agency prepared for that purpose in the Ministry and any lawsuit shall not be heard for Commercial Agency not registered in the Register.
Article 6 of the Federal Law No.18 of 1981 – Commercial Agencies. Contract of the Commercial Agency shall be considered for the joint interest of the contracting parties and the State’s Court shall be concerned with viewing any dispute that results from its implementation between the principal and the agent and any other contrary agreement shall not be considered.
Our Commercial Agency and related disputes practice excels at navigating contracts to derive maximum benefit for the client. We also specialize in resolving any disputes arising from such arrangements.
The Registered Commercial Agency is given substantial protection under the UAE law. Although transaction disputes arising from unregistered agency contracts cannot be enforced through the courts, the claims can be heard under the UAE Civil or Commercial Law or the foreign entity can secure the method of payment through Letter of Credit or enter into a separate side agreement specifying the method of payment. Thus it is advisable to seek competent legal counsel while drafting Commercial Agency Agreement and appointing a distributor or agent.