Legislation Overview
- Title: Federal Law Concerning Regulating Commercial Agencies - Type: Federal Law - Issued Date: 13 Dec 2022 - Effective Date: 15 Jun 2023 - Sector: Economy and Business - Number of Articles: 71 - Current Status: Active
Summary
This federal law regulates commercial agency activities in the United Arab Emirates. It defines the requirements and procedures for registering commercial agencies, outlines the rights and obligations of agents and principals, and specifies the penalties for non-compliance. The law aims to provide a legal framework for commercial agency relationships and protect the interests of both parties. (Federal Law Concerning Regulating Commercial Agencies, 2022) The law also includes provisions on the termination and non-renewal of commercial agency contracts, as well as the settlement of disputes through the Commercial Agencies Committee and the courts. (Federal Law Concerning Regulating Commercial Agencies, 2022)
What is the scope and purpose of this law?
The purpose of this law is to regulate the practice of commercial agency activities in the United Arab Emirates. It applies to the representation of a principal by an agent under a contract of agency, distribution, sale, offer, or concession, as well as the provision of goods or services inside the UAE in exchange for a commission or profit. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1)
What are the key definitions?
The law provides the following key definitions: - The State (UAE): The United Arab Emirates. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Ministry: The Ministry of Economy. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Minister: The Minister of Economy. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Competent Authority: The local authority in the emirate concerned. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Committee: The Commercial Agencies Committee. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - Commercial Agency: The representation of a Principal by an Agent under a contract of agency, distribution, sale, offer or concession, or the provision of goods or services inside the State in exchange for a commission or profit. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - Commercial Agencies Register: A database to be established in the Ministry, in which the data of Commercial Agencies in the State are recorded. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Principal: The producer or manufacturer that owns the goods or services inside or outside the State. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1) - The Agent: The natural or legal person for whom the representation of the Principal is established under the Commercial Agency Contract. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this law include: - The practice of commercial agency activity in the UAE is limited to individual citizens and companies/establishments wholly owned by UAE nationals or certain public legal persons. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 2) - Commercial agencies must be registered in the Commercial Agencies Register maintained by the Ministry of Economy. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 3) - Commercial agency contracts must be in writing, notarized, and between the original principal and the agent. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 4) - Agents are entitled to receive commissions for transactions concluded by the principal, even if not through the agent's efforts. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 8)
What are the rights and protections?
The law provides the following key rights and protections: - The commercial agency contract is deemed to be in the common interest of the contracting parties, and the courts of the UAE have jurisdiction over any disputes. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 5) - If the commercial agency contract is terminated or not renewed, the agent may be entitled to compensation for any damage sustained. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 11) - Agents have the right to challenge the termination of a commercial agency contract before the Commercial Agencies Committee. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 10)
What are the penalties for non-compliance?
This legislation does not include specific provisions on penalties for non-compliance.
How does this law interact with other UAE legislation?
The law references and interacts with several other UAE federal laws, including: - Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers - Federal Law No. (18) of 1981 Regulating Commercial Agencies - Federal Law No. (11) of 1992 Promulgating the Civil Procedure Code - Federal Law No. (18) of 1993 Promulgating the Commercial Transactions Law - Federal Law No. (14) of 2016 on Administrative Violations and Penalties in the Federal Government - Federal Law No. (6) of 2018 on Arbitration - Federal Decree-Law No. (32) of 2021 on Commercial Companies - Federal Decree-Law No. (36) of 2021 on Trademarks - Federal Decree-Law No. (37) of 2021 on the Commercial Register (Federal Law Concerning Regulating Commercial Agencies, 2022)
When did this law come into effect and what are the transitional provisions?
This federal law concerning regulating commercial agencies was issued on 13 December 2022 and will come into effect on 15 June 2023. (Federal Law Concerning Regulating Commercial Agencies, 2022, Art. 31) The legislation does not include specific transitional provisions.
Source Documents
This article analyses Federal Law Concerning Regulating Commercial Agencies for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.