INTRODUCTION:

The Minister of Economy in the United Arab Emirates (“UAE“) has issued a couple of decrees regulating agencies’ activities and framework in the UAE. These are Decree No. (214) of 2023 on Registration of Data in the Commercial Agencies Register (“Decree No. 214 of 2023“), Decree No. (215) of 2023 on the Controls, and Standards for Assessment of the Volume of the Agent’s Investments in the Commercial Agency (“Decree No. 215 of 2023“), and Decree No. (216) of 2023 on Regulating the Terms and Conditions for the Entry of Goods or Services Bound by Commercial Agencies for a Temporary Period During the Duration of the Dispute Between the Agent and the Principal (“Decree No. 216 of 2023“).

We are set to launch a series of articles focusing on each of the aforementioned topics. This initial article marks the beginning of the series, delving into the discussion of Decree No. 214 of 2023, which repeals the executive regulations No. (47) of 1989 of the Law regulating Commercial Agencies No. (18) of 1981. The provisions of this Decree include the following:

REGISTRATION IN THE COMMERCIAL AGENCIES REGISTER:

According to Decree No. 214 of 2023, the agency registration shall be done electronically on the portal designated for this purpose. The Decree also specifies the details and data related to the commercial agency, its parties, its subject including goods or services, the agency area, and the duration of the agencies. The registration of the commercial agency shall follow these timelines:

• Within 10 business days, the ministry shall review the registration request and issue its decision.
• Once the Ministry approves the registration request, it shall inform the agent and provide a 90-day grace period to pay the fees required to issue a certificate of registration of the commercial agency.
• After paying the above-mentioned fees, the ministry shall notify the competent authority and the federal and local authorities concerned with customs affairs regarding the registration of the commercial agency in the commercial agencies register within 5 business days.

The registration request might be rejected. In this case, the ministry will inform the agent through direct service, email, the electronic services platform, or by text message on the mobile phone registered with the application, within 3 working days from the date of the rejection decision.

OBTAINING DOCUMENTS AND DATA FROM THE COMMERCIAL AGENCIES REGISTER:

Through the electronic service platform, the agent can obtain a circular letter or a “to whom it may concern” certificate for the registered commercial agency, upon payment of the requisite fee. Additionally, both the agent and the principal have the option to acquire electronic copies of commercial agency documents from the commercial agencies register through the same platform, following payment of the prescribed fee. Furthermore, any concerned party can request an inquiry application or an extract of the registration sheet from the ministry regarding the commercial agencies register and can also obtain a certificate of non-registration via the electronic service platform upon payment of the stipulated fee.

RENEWAL OF COMMERCIAL AGENCY REGISTRATION:

The ministry shall notify the agent of the expiration of the commercial agency registration no less than 15 days before the end of the registration period. In this case, the agent shall submit a renewal request along with the required documents through the electronic service platform. The Ministry shall review the renewal request and issue its decision within 3 business days. The agent shall be notified of the ministry’s decision regarding the registration renewal application and shall also be informed of the request to pay the prescribed fee within 30 days if the application for issuing the commercial agency registration renewal certificate is accepted. After paying the prescribed fee, the ministry shall issue a certificate of renewal of the commercial agency registration, valid for a year from the date of the expiration of the registration certificate or the previous renewal certificate, as applicable.

The renewal request might be rejected. In this case, the ministry will inform the agent through direct service, email, the electronic services platform, or by text message on the mobile phone registered with the application, within 3 working days from the date of the rejection decision.

MODIFICATION OF THE COMMERCIAL AGENCY’S REGISTRATION:

The agent, the legal representative, or the heirs in case of the agent’s demise shall notify the ministry of every change or amendment that occurs to the registration application data, or the attached documents. The notification shall be based on an annotation application submitted via the electronic service platform, along with supporting documents, within 60 days after learning of the change or amendment and after paying the prescribed fee. The applicant shall receive a certificate of amendment to the registration data.

The modification request might be rejected. In this scenario, the ministry will inform the agent through direct service, email, the electronic services platform, or by text message on the mobile phone registered with the application, within 3 working days from the date of the rejection decision.

WRITING OFF A REGISTRATION FROM THE COMMERCIAL AGENCIES REGISTER UPON THE AGENT’S REQUEST:

If the agent intends to remove the registration of the commercial agency from the commercial agencies register, they must submit an application through the ministry’s electronic service platform, stating the reason for the removal. This application should include the requested documents verifying the accuracy of the provided data. The ministry will evaluate the application within 3 working days upon meeting the requirements and make a decision. Upon approval, a certificate of removal will be issued. Additionally, within 5 working days, the ministry will notify the competent authority and relevant federal and local customs authorities of the decision.

Authors: Yousef Al Amly – Partner and Habiba Wahdan – Associate