Representation Agreement

If you believe it’s time to expand your business, you’ve probably considered branching out to another country. When your company becomes successful, it’s difficult not to saturate the market in your original location with your products or services. Therefore, moving to a foreign location is beneficial in that residents probably have never even heard of your company. Many businesses are opening branches in Brazil for this and other investment reasons.

Brazil is amongst the best options for business expansion right now. It is still cheap to invest in property there, so buying a storefront or office would not be an issue. People are also spending a considerable amount of money because inflation is down and businesses are still stable. However, you might be concerned that you will be required to travel frequently to make business deals. If your business is headquartered in the United States, you’ll need to travel quite a ways every time you need to make a decision on behalf of your Brazilian location. Fortunately, you have the option to hire a commercial representative.

Experience the Benefits of a Commercial Representative

A commercial representative is essentially a trade agent who can make decisions and commercial agreements on behalf of your company. In this case, you would hire a Brazilian commercial representative who can speak with other Brazilians to make deals. Having a Brazilian representative for a Brazilian-based business is not only beneficial for travel purposes, but it can also garner more business as people will be more willing to speak with someone from their native country.

To appoint a commercial representative for your business, both of you’ll need to sign a commercial representation agreement. The agreement empowers your representative to make decisions for your company while binding your company to any agreements he or she makes. For that reason, it is vital that you trust your representative. If your commercial representative or trade agent signs a contract that you’re not comfortable with, you are bound to that contract as if you personally signed it.

In addition to feeling a sense of trust for your commercial representative, you should also make sure he or she is clear on his or her duties and the intent of the company. Your agent should know exactly what your company’s intentions are and what each business transaction should entail.

Agreeing to the Details of Representation

After outlining the purpose of the representation for your company, you should also reach an agreement with your commercial agent about compensation and contract terms. You’ll need to decide how long your commercial representation agreement will last for. If such a timeline is not clearly established, you are putting your company at risk. Your commercial agent could continue making deals on your behalf after the intended time period has ended, and you could be spending more money than you had anticipated. You’ll also need to decide how your agent will be paid. You could pay him a pre-determined amount of money, or you could pay him a commission for the number of clients he brings in. This should depend mostly on the type of products or services your company offers.

If you’re thinking about hiring a commercial agent in Brazil for your business overseas, a Brazilian attorney can help you draw up a precise and comprehensive commercial representation agreement in Brazil.

Phone: 214-432-8100

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