Article 3 of the Saudi Commercial Agencies Law
المادة 3 من نظام الوكالات التجارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز أن يقوم بعمل الوكيل التجاري إلا من كان مقيدًا في السجل المعد لهذا الغرض في وزارة التجارة والصناعة، ويصدر وزير التجارة والصناعة قرارًا بإنشاء هذا السجل، وتشتمل بيانات السجل المذكور على اسم التاجر أو الشركة، ونوع البضاعة الموكل فيها، والشركة والمؤسسة الموكلة، وتاريخ التوكيل، ومدته إن كانت الوكالة محددة بأجل. وتقدم طلبات القيد بهذا السجل مع المستندات المسوغة للقيد إلى وكيل وزارة التجارة والصناعة، ولا يجوز رفض القيد إلا لغير السعودي أو لمن كان سعوديًّا ممنوعًا من مزاولة التجارة وغير أهل لممارستها، ويجوز لمن رفض قيده أن يتظلم إلى وزير التجارة والصناعة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 3 explained in plain English
This Article requires registration in the commercial agencies register before carrying on the business of a commercial agent: no one may work as a commercial agent unless registered in the register prepared for this purpose at the Ministry of Commerce and Industry, and the Minister issues a decision establishing this register.
The register's data:
- The name of the merchant or company.
- The type of goods the agency covers.
- The principal company or establishment.
- The date of the agency appointment.
- The duration of the agency, if it is limited to a term.
Submitting the application: registration applications are submitted with the documents justifying registration to the Deputy Minister of Commerce and Industry.
When is registration refused? The text limits the cases of refusal: registration may not be refused except for a non-Saudi, or for a Saudi who is prohibited from practicing trade and is not fit to practice it. This is consistent with Article 1, which limited commercial agency to Saudis.
Appeal: a person whose registration is refused may appeal to the Minister of Commerce and Industry.
Article 4 sets a fine penalty for anyone who violates the provisions of this Law, and Article 5 sets the fees for registration in the register. Someone whose application is refused or who wishes to appeal can consult a lawyer specialized in commercial cases and agencies.
Practical example
Khaled, a Saudi merchant in Riyadh, signed an agency contract with a foreign tire factory. Before he starts selling as an agent, he must submit the registration application in the agencies register with the agency documents, and his name, the type of goods, the principal factory, the date of the appointment and its duration if limited are entered in the register.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 3 of the Saudi Commercial Agencies Law
Can a commercial agency be carried on before it is registered?
No. The Article provides that no one may carry on the business of a commercial agent unless registered in the register prepared for this at the Ministry of Commerce and Industry.
What data does the commercial agencies register contain?
The name of the merchant or company, the type of goods the agency covers, the principal company or establishment, the date of the appointment, and its duration if the agency is limited to a term.
When can registration of a commercial agency be refused?
Only for a non-Saudi, or for a Saudi who is prohibited from practicing trade and is not fit to practice it.
What do I do if registration of my agency is refused?
A person whose registration is refused may appeal to the Minister of Commerce and Industry.
More articles on Registering a Commercial Agency
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.