Royal Decree No. 77/26 concerning “Commercial Powers of Attorney”

Royal Decree No. 77/26
Concerning Commercial Powers of Attorney

We, Qaboos bin Said, Sultan of Oman,
After reviewing the Law on the Organization of the Administrative Apparatus of the State of 1975,
the Commercial Registration Law No. 3 of 1974,
the Commercial Companies Law No. 4 of 1974,
the Law on the Protection of Emerging Industries No. 6 of 1974,
and based on the proposal of the Minister of Commerce and Industry,
and after the approval of the Royal Court,
hereby issue the following decisions by virtue of this Decree:

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General Provisions

Article 1
Under this Law, a “Commercial Power of Attorney” refers to any agreement under which a foreign producer or supplier appoints in Oman a trader or commercial company to sell, promote, distribute goods, or provide services as an agent, representative, or intermediary for the main producer or supplier who has no legal presence in Oman, in return for profit or commission.
In all cases, the commercial agent shall perform his duties independently and organize his own commercial activities.

Article 2
Carrying out commercial agency activities in Oman or importing goods shall only be permitted if the conditions stipulated in Article 3 of this Law are met, unless the goods are imported for personal consumption without involvement in trade.

Article 3
The conditions required for individuals and companies to carry out commercial agency activities or imports are as follows:
a. The individual must be an Omani national and have his principal residence in Oman.
b. The individual must not be under 18 years of age.
c. The individual must be registered in the Commercial Register and a member of the Oman Chamber of Commerce and Industry.
d. The individual must not have been declared bankrupt or convicted of a criminal offense affecting his credibility, unless his credibility has been restored according to law.

Article 4
Individuals and companies engaged in commercial agency activities at the time of issuance of this Law shall have one year from its effective date to regularize their activities. Persons who do not meet the conditions of Article 3 may apply for temporary registration of a commercial agency.

Article 5
Any trader or company may import goods under an agency agreement from the original foreign producer or supplier, provided this is in accordance with the provisions of this Law.

Article 6
Commercial agency contracts must include the following conditions:
a. The name and nationality of each party to the contract (agent and principal).
b. The goods or services covered by the agency and the trademark, if any.
c. The duration of the agency and the geographical area of the agent’s activities.
d. The contract must be registered in the Commercial Register.

Article 7
This Article was repealed by Royal Decree No. 34/2014.

Article 8
The principal shall be obliged to reimburse the agent’s expenses and discharge any liabilities incurred in the execution of the agency contract.

Article 9
Commercial agents shall in all cases provide the following services to consumers:
a. The goods and services covered by the agency, including after-sales services.
b. Spare parts for vehicles, machinery, electrical appliances, and other mechanical equipment.

Article 10
This Article was repealed by Royal Decree No. 34/2014.

Article 11
A special register for “Commercial Registration and Commercial Agencies” shall be prepared in the Ministry and maintained by the Minister or his delegates, and the necessary procedures, forms, and instructions for issuance and maintenance shall be prescribed.

Article 12
Anyone wishing to carry out commercial agency activities must first register his agency in the relevant register at the Ministry before commencing any commercial activity.

Article 13
If a commercial agency registration application is submitted within 5 days from the date of its entry at the Ministry, the Ministry shall be responsible for confirming the application, and registration shall be effected on the specified working day.

Article 14
If control or dominance over certain goods or services negatively affects supply and demand and leads to unjustified price increases, the Council of Ministers may restrict the number of agencies permitted for each agent and their type, based on the recommendation of the competent authorities.

Article 15
The Ministry shall cancel the registration of commercial agencies if it is proven that registration was based on incorrect data or for any other reason specified by law.

Article 16
Any person whose registration or cancellation of agency registration is affected may request the Ministry to submit an objection to the Minister if the registration or cancellation was not carried out in accordance with the law. The Minister’s decision in this matter shall be final.

Article 17
If an agent or representative dies during the agency activities, or if the agency contract is terminated or expires, the Ministry must be notified. Otherwise, the Ministry shall automatically delete the agency from the register.

Article 18
A special committee shall be formed to hear commercial disputes between principals and agents, tasked with resolving disputes and determining compensation. This committee shall act in accordance with commercial principles and local justice unless the parties opt for arbitration.

Article 19
Any person who violates the provisions of Articles 3 or 4, or fails to comply with obligations under the agency contract, or provides incorrect data in registration, shall be fined between OMR 500 and OMR 10,000. In case of repeat violations, the commercial shop or part thereof may be closed, and the agency registration may be removed from the commercial register.

Article 20
The Minister may authorize certain Ministry employees to access documents related to any commercial agency to verify registrations and the performance of duties in accordance with the provisions of this Law.

Article 21
The Minister of Commerce and Industry shall be responsible for implementing this Law and issuing the necessary instructions for its application, including procedures for monitoring and recording agency-related data and information.

Article 22
This Law shall come into effect from the date of its publication in the Official Gazette.