mc_gov_sa · law · processed · 9 chunks
VISION d
230
الاملكه العربيه السعوديه
KINGDOM OF SAUDI ARABIA
وزاره التجاره
Ministry of Commerce
Law of Commercial Agencies
+966 11 294 4444 | Riyadh 11162
Kingdom of Saudi Arabia | المملكه العربيه السعوديه
YouTube | SaudiMCI
www.mci.gov.sa
[Non-Text]
وزاره التجاره
Ministry of Commerce
VISION d_jj
230
Komalka erebilel shwogdie
KINGDOM OF SAUDI ARABIA
Law of Commercial Agencies
In the Name of Allah the Most Compassionate, the Most Merciful
Royal Decree NO: 11
Passed on: 20/02/1382 AH
With the blessing of Allah
In the name of Faisal bin Abdul Aziz Al Saud
Deputy Crown Prince of Kingdom of Saudi Arabia
In accordance with article twenty (19) of the Law of Council of Ministers, enacted under the Royal Decree NO (38) on 22/10/1377 AH;
In accordance with the Ministerial Decree NO (89) on 13/02/1382 AH; and
In accordance with the Vice Prime Minister submissions to us,
Do hereby
First: Approve the Law of Commercial Agencies as per the draft annexed hereto.
Second: Assign the Vice Prime Minster and the Minister of Commerce and Industry to approve the present decree and act thereupon.
Ministerial Decree No (89) passed on 13/02/1382 AH
The Council of Ministers,
After reviewing the transaction received from the Prime Minister Diwan under number 431, dated 11/01/1382 AH, concerning the draft Law of Commercial Agencies submitted by the Minister of Commerce and Industry;
After reviewing the draft Commercial Agencies Law; and
In accordance with the Laws Committee recommendation NO (22) dated 30/01/1382AH
Does hereby resolve
1. Approve Law of Commercial Agencies as per the draft annexed hereto.
2. Regulate a Draft Royal Decree for the same, a copy of which is enclosed herewith.
Prime Minister
+966 11 294 4444 | Riyadh 11162
YouTube | SaudiMCI
2
Kingdom of Saudi Arabia | المملكه العربيه السعوديه
www.mci.gov.sa
[Non-Text]
وزاره التجاره
Ministry of Commerce
VISION d_jj
2-30
demolak erebilean
KINGDOM OF SAUDI ARABIA
Law of Commercial Agencies
Article (1):
A non-Saudi person, whether natural or legal, may not operate as a commercial agent in the Kingdom. Saudi companies operating as commercial agents must have a 100% Saudi capital, and the members of their boards of directors and authorized signatories shall be Saudis.
Article (2):
Commercial agents who are engaged in business on the date of issuance of this Law and who are not subject to the provisions of Article 1 of this Law do not apply shall be given a period of not more than two years from the date this law enters into force to liquidate and transfer their businesses to Saudi commercial agents. The Minister of Commerce shall specify such period for each agent separately, taking into consideration the time for liquidation, the nature of the business, and the above-mentioned period.
Article (3):
A person may not operate as a commercial agent unless his name is registered with the Ministry of Commerce and Industry in a register designated for this purpose; said register shall be established pursuant to a decision by the Minister of Commerce and Industry. The register shall include the name of merchant or company, type of goods, name of the authorizing company or establishment, date of authorization, and, if definite, term of authorization. Registration applications shall be submitted together with supporting documents to the Deputy Minister of Commerce and Industry. Such applications may not be rejected except for non-Saudis or for Saudis who are unqualified or barred from engaging in business. Rejected applicants may appeal before the Minister of Commerce and Industry.
Article (4): \( ^{1} \)
A person operating as a commercial agent in violation of this Law shall be subject to a fine of not less than 1000 riyals and not more than 5000 riyals. If the violation is committed by a foreigner or by a Saudi company with one or more non-Saudi partners, the fine shall be coupled with administrative liquidation of the commercial agency, and the violator may permanently or temporarily be barred from engaging in business. The Minister of Interior may, upon a recommendation by the Minister of Commerce and Industry, order the deportation of said foreigner.
Article (5): \( ^{2} \)
Fees for registration in the Agencies Register shall be as follows:
- 500 riyals for an individual merchant or a company.
- Fees shall be paid once.
\( ^{1} \) This Article is amended in the Royal Decree No. (32/M) dated 10/08/1400AH. The former Article was as follows: "Anyone who acts as commercial agent and violates this law shall be fined a sum not exceeding SAR 5,000 and not less than SAR 1,000. If the violation is committed by a foreigner or by a Saudi company with one or more foreign partners, the penalty shall be, in addition to the fine quoted above, the administrative liquidation of the commercial agency business and the possibility of preventing the violator from practicing commerce either permanently or for a specific period. The Minister of Interior may, based upon a recommendation by the Minister of Commerce, order the deportation of the foreigner.
\( ^{2} \) This Article is amended in the Royal Decree No. (8/M) dated 30/03/1393 AH, ratified by Royal Decree No. (11), dated 20/02/1382AH. The former Article was as follows: "Registration fees are fixed as follows:
SAR 500 for the individual agent.
SAR 100 for the company. Fees shall be paid as a lump sum."
+966 11 294 4444 | Riyadh 11162
A Saudi MCI
3
Kingdom of Saudi Arabia | المملكه العربيه السعوديه www.mci.gov.sa
[Non-Text]
وزاره التجاره
Ministry of Commerce
VISION 3
230
komolak عربيه السعوديه
KINGDOM OF SAUDI ARABIA
Article (6): \( ^{3} \)
Article 6: This Article was amended pursuant to Royal Decree No. (M/5), dated 11/6/1389H, to read as follows:
1. A panel of three members shall be formed at the Ministry of Commerce and Industry pursuant to a decision by its Minister to impose the penalties provided for in the Law of Commercial Agencies and the Law of Calibration and Measurement.
2. Panel decisions may be appealed before the Minister of Commerce and Industry within 15 days from the date the aggrieved party or his representative is notified thereof; otherwise, such decisions shall become final upon the approval of the Minister of Commerce and Industry.
Article 1:
Without prejudice to other laws, the Law of Commercial Agencies, issued pursuant to Royal Decree No. 11, dated 20/2/1382H, and its amendments shall apply to any person who enters into an agreement with the producer or his representative in his country to engage in business, whether as an agent or a distributor, in any form of authorization or distribution.
Article 2:
Without prejudice to laws and decisions pertaining to the provision of spare parts and maintenance, the agent and distributor shall:
a) Make available continuous supply of highly demanded spare parts and make available other less demanded spare parts within a reasonable time, as stipulated by the Implementing Regulations; and
b) Provide necessary maintenance for the products, guarantee their manufacturing quality, and abide by the terms and conditions of the producers throughout the term of the agency agreement and the year following either the expiration of the agency agreement or the appointment of a new agent, whichever comes first, in accordance with the Implementing Regulations.
Article 3:
The Implementing Regulations of the Law of Commercial Agencies shall be issued by the Minister of Commerce and shall be published in the Official Gazette.
Article 4:
The Ministry of Commerce shall prepare model agreements for agents and distributors. The model agreements shall contain all necessary elements, including the parties to the agreement, subject matter, duration, territory, terms for renewal and termination, and the parties' obligations towards each other and towards consumers, especially with regards to the provision of maintenance and spare parts.
\( ^{3} \) The following Articles shall be added to the Commercial Agencies Law by virtue of Royal Decree No. (32/M), dated 10/8/1400 H.
+966 11 294 4444 | Riyadh 11162
YouTube SaudiMCI
4
Kingdom of Saudi Arabia | المملكه العربيه السعوديه www.mci.gov.sa