Commercial agent

Commercial agent

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 usually a natural person; however, this profession may be exercised by a company. 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.

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 and they may recruit their own staff without having to obtain authorisation. They also 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.

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.

However, since the commercial agent must perform such activities on a regular basis, the Monegasque Government excludes seasonal workers and those exhibiting at trade fairs.

The benefit is that 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 the parties' joint interests. This concept of joint interests is twofold –  the continuous nature and duration of the collaboration inter-parties 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.

Monaco in Key Figures

km²
Surface area
Inhabitants
Entreprises
Jobs
GDP per capita (2021)
.3 bn
Nominal GDP (2021)

Source: IMSEE