Published on · Moova Intelligence team
Commercial representation is a way to reach new clients without building your own team in every market. To work, it needs clear roles and a well-written agreement, especially when the representative and the represented company are in different countries.
What commercial representation is
Brazil’s Law 4,886/1965 defines the independent commercial representative as an individual or company that, with no employment relationship and on a regular basis, brokers commercial deals on behalf of one or more companies, taking offers or orders and passing them on to the represented companies (art. 1).
In practice, the representative does not buy the goods: it prospects, presents, negotiates within what has been authorized and earns a commission on deals closed. That sets it apart from a distributor, which buys and resells on its own account.
CORE registration
In Brazil, anyone working as a commercial representative must be registered with the Regional Council of Commercial Representatives (CORE) in their state (art. 2 of Law 4,886/1965). Representation companies register both the company and a technical officer. The Federal Council (Confere) and the regional councils publish the registration rules.
For the company hiring a representative, asking for the registration number is a simple and useful check.
What the agreement must include
The law lists mandatory elements of a representation agreement (art. 27), including:
- general conditions and requirements of the representation;
- the products covered;
- a fixed or indefinite term;
- the territory or territories and whether there is full or partial exclusivity;
- the compensation and when it is paid, depending on deals actually being closed;
- the cases that justify restricting an exclusive territory;
- the obligations and responsibilities of each party.
It is also worth defining targets, order approval, expenses, handling of defaults, ownership of the leads generated, confidentiality and use of the brand.
When representation is international
Some issues carry more weight when borders are involved:
- Governing law and jurisdiction. Define which law governs the agreement and where disputes will be settled, including whether by arbitration. Local rules protecting representatives may still apply.
- Currency and timing of commission. In which currency the commission is calculated and paid, and whether it is due on order, shipment or payment.
- Terms of sale. If the representative negotiates price and delivery, the agreement should state on what terms, for example with the agreed Incoterm® and place.
- Language. Which language version of the agreement prevails.
- Integrity. The Good Integrity Practices Guide for Brazilian Exporters (CGU and ApexBrasil, 2026) flags hiring intermediaries without due diligence and disproportionate commissions as risks. Anti-corruption clauses and a commission in line with the service protect both parties.
The final text should be reviewed by a lawyer experienced in commercial representation and international contracts.
In short
A good international representation combines a registered representative, well-defined roles and an agreement that clearly covers territory, exclusivity, commission, governing law and integrity. That prevents most conflicts before they arise.