Commercial agent

INFORMATION
STARTING AND MANAGING A BUSINESS
Last updated: 05/04/2023

Features

A commercial agent is a proxy who, as a self-employed worker on a regular basis, negotiates and may conclude purchases, sales, rentals or provide services, in the name and on behalf of producers, industrial clients or traders.

The commercial agent is a proxy
Their activities are non-commercial and of a non-trading nature.
The commercial agent is usually a natural person; however this profession may be exercised by a company.


The commercial agent  is self-employed
The commercial agent is not a subordinate of their principal(s). This distinguishes the commercial agent from a salaried representative.
The commercial agent is free to organise their own business:

  • They have the initiative in developing the marketing of the products for which they are responsible. They do not have to comply with instructions from the principal
  • They may recruit their own staff without having to obtain authorisation

The commercial agent is free to choose their activities - they may act on behalf of several principals subject to compliance with a non-compete obligation. They may perform other professional activities on their own behalf, in particular those of a commercial nature, insofar as they do not compete with their principals' activities.

The commercial agent must perform such activities on a regular basis.
This excludes seasonal workers and those exhibiting at trade fairs.

Status

The commercial agent has a "legal status" that has been put in place to protect them.

The law thus states that the undertakings binding commercial agents and their principals are entered into in the parties' joint interests.

This concept of joint interests is twofold - the continuous nature and duration of the collaboration inter partes and the forming of a joint clientele.

Since the mandate has a twofold interest, it may only be revoked by mutual consent or for legitimate reasons.

If the mandate is terminated by the principal without the latter being able to provide justification of misconduct on the part of their proxy, the agent is entitled to pecuniary compensation for the prejudice suffered.

Main features of the commercial agent agreement

  • The written form is not mandatory
    The law states that the agent and their principals make an undertaking in the form and under the conditions laid down in Article 1824 of the Civil Code which provides that "the mandate may also be granted orally"
  • The agreement may be fixed-term or permanent
  • The agreement may bestow sole agency rights

 

Formalities

Any foreign national who wishes to operate as a commercial agent either under their own name or through a company must apply for a permit.

Commercial agents who hold Monegasque nationality should submit a declaration of intent.

Documents needed for the application process (for both Monaco and foreign nationals) are available on this webpage.

Agents should supply a certificate from at least one of their principals confirming that they have a relationship under the provisions of 

Only after getting the business permit (for foreign nationals) or the receipt of application (for Monaco nationals), commercial agents must get listed on the special register of commercial agents held by the Trade and Industry Registry.

Any change which “relates either to an aspect of the commercial agent’s identity or to the declaration or administrative approval which authorises the agent to operate, must be reported via a request to modify or remove the register entry” in accordance with Article 5 of

 


 

 

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