UAE Agent

• The UAE Commercial Agencies Law regulates the appointment of commercial agents, sales representatives, and distributors within the UAE
• A commercial agent is appointed to distribute, sell, offer, or provide goods or services within the UAE for commission or profit
• For some service companies, a local service agent must be appointed. A local service agent generally assists with administrative tasks such as i) handling government bureaucracy including visas or ii) helping our Client navigate through the upper echelons of the Ministries
• Commercial or service agents must be UAE nationals or companies owned entirely by UAE nationals
• The Ministry of Commerce and Industry has published standard forms of agency and distributorship contracts
• Before contracting a local agent or distributor, CLA Consultants recommends i) visiting the UAE for a face-to-face meeting with the agent; ii) obtaining detailed due diligence from the agent including passport copy, resume, professional reference letters, etc. and iii) engaging a local lawyer or accountant to review legal agreement, if the standard template provided by the Government is not used
• The agency contract must clearly stipulate i) the agent will not interfere with the company’s management or activities and ii) he/she will be paid a lump sum and/or a percentage of profits or turnover