Commercial Agencies


Agencies are principally regulated by Law 120 of 1982 (as amended), and the subsequent Commercial Code of 1999. In addition, a number of provisions of the Civil Code apply more generally to the relationship between a principal and his agent, unless specifically regulated by the provisions of the Commercial Code.

Egyptian laws recognize several types of agents. The main distinction lies between commission agents, who undertake dealings in their own name but for the account of the principals and commercial or contracts agents who conclude contracts in the name, and for the account of, the principal.

Commercial agents must be either a person of Egyptian nationality or an Egyptian legal entity. Agents must be registered at the Registry of Commercial Agents.

While agencies are widely used by foreign companies as a vehicle for undertaking business in Egypt, the termination of unlimited period agencies has proved to be challenging if the termination is made without prior notice or at an inconvenient time. If no choice of law is expressly agreed in the contract, the principal and the agent will be deemed to have chosen Egyptian Law. Moreover, a number of Egyptian law provisions are mandatory and may not be derogated from.

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