• Commercial agencies that are in relation to the implementation of the Commercial Agencies Law and its amendments refer to anyone who contracts with a manufacturer or his representative in his country to conduct business as agent or distributor, in any form of agency or distribution for profit, commission or facilities of any nature, including agencies for maritime, air or land transportation or any other agencies that would be decided by the Minister of Commerce.

• The agent or distributor may contract with sub-distributors within the territory of the agency, provided that the original agent or distributor remains liable for the legally established obligations towards the consumer. As for the service agencies mentioned in the law on relationship between the foreign contractor and his Saudi agent, all provisions included in the aforementioned law, issued by Royal Decree No. (M/2) dated 20/01/1398 H, shall be applied in this regard.

• 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.

The Agent and the Distributor are obligated to provide spare parts and offer necessary maintenance, ensuring the quality of manufacture and the conditions typically set by the producers in accordance with the provisions for providing maintenance and supplying spare parts and ensuring the quality of manufacture accompanying the executive regulation of the Commercial Agencies System, and these provisions shall be part of the regulation.

• The commercial agent or distributor shall ensure that all papers, contracts, advertisements -that are related to the agency- and official invoices bear his name and address, type and territory of the agency, and the registration number recorded in the commercial agencies register and the commercial register.

• The commercial agent and distributor shall commit to facilitate the tasks of the competent control officers by cooperating with them and responding to their requests within the scope of the provisions of these Regulations.

• No one may act as commercial agent or distributor unless he is registered in the register designated for this purpose at the Ministry of Commerce. Registration applications and the supporting documents shall be submitted to the deputy of the Ministry of Commerce or a branches thereof within three months from the date the agreement came into effect. Upon receiving the applications, the Ministry’s branches shall send them directly to the deputy to consider the validity of the contract and its supporting documents.

• A person who is not Saudi or whose registration documents are inconsistent with the Agencies Law and its Implementing Regulations may not be allowed to register. An applicant whose registration has been rejected may appeal to the Minister of Commerce within one month from the date of notifying him with the reasons for rejection, then his application shall be reconsidered based on the justifications given in his appeal. The decision of the Minister of Commerce is final in this regard.

• The registration application of the commercial or distribution agency shall include the following data:

  •  Name of the commercial agent or distributor, whether an individual or a company.

  •  Number of the main or secondary commercial registration that gives the applicant the right to practice agency business.

  •  Address of the agent or distributor.

  • Name of the person authorized to manage the store or sign on its behalf.

  •  Types and names of the goods and services included in the contract.

  •  Name of the principal and his nationality.

  • Address of the principal’s headquarters.

  •  Address of the industrial or agricultural center of the produced goods encompassed by the contract.

  • Territory of the agency and distribution and its term