In force Last amended 10/8/1400 AH
Saudi Commercial Agencies Law
نظام الوكالات التجارية
The law limits commercial agencies to Saudis, requires Saudi agents to be entered in a special register at the Ministry of Commerce and Industry, sets penalties for violations, and sets the registration fees.
- Articles
- 6
- In force
- 6
- Amended
- 3
- Issued
- 1/1/1382 AH
Issued by: مرسوم ملكي رقم 11 بتاريخ 20 / 2 / 1382 · قرار مجلس الوزراء رقم 89 بتاريخ 13 / 2 / 1382
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
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Articles of the Saudi Commercial Agencies Law
- Article 1The Article limits commercial agency in the Kingdom to Saudis, and requires an agent company to have wholly Saudi capital and Saudi board members and authorized signatories.
- Article 2The Article gives commercial agents existing when the Law was issued, to whom Article 1 does not apply, a period of no more than two years to wind up their business and transfer it to Saudi agents.
- Article 3The Article bars carrying on the business of a commercial agent before registering in the agencies register at the Ministry of Commerce and Industry, and sets its data, the cases for refusing registration and the right to appeal to the Minister.
- Article 4The Article punishes violating the Commercial Agencies Law with a fine of SAR 5,000 to 50,000 and publication of the penalty, with harsher penalties if the violation is attributed to a foreigner or a company with a non-Saudi partner.Amended M/32
- Article 5The Article sets the fee for registration in the commercial agencies register at SAR 500 for an individual merchant and a company, paid once.Amended
- Article 6The Article provides that the Commercial Agencies Law takes effect three months after its publication.Amended M/32