Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.

Using an Agent

The IDB Group itself has no specific rules on foreign firms working through a local office in order to participate in IDB funded projects.

Given the high percentage of contracts that are awarded to companies registered in the country where the project is located, it is often advisable for American firms to identify a local agent to support a proposal or bid for IDB-financed work.

Agents and consultants can also be used to support engagement with the IDB more broadly. Specialized firms, many in the Washington D.C. area offer support to firms looking to pursue business in the multilateral development banks as well as USG development agencies.

Each country has its own laws governing participation of foreign firms in its market: some countries have no requirements to establish or operate through a local entity; others require use of a local entity in order to sell to the government but not to the private sector; still others require use of a local entity for all commercial activities. Laws defining forms of local entity (agent, representative, partner, distributor, etc.), what constitutes that entity, what constitutes a contract or agreement, obligations of parties to the agreement to one another, exposure to local taxation and labor laws, and other elements of doing business also vary country to country. Firms wishing to enter into any agreement should consult with competent host nation legal counsel to ensure that the agreement is in accordance with host nation laws and requirements.

To learn about requirements in countries of interest to your firm see the “Using and Agent to Sell U.S. Products and Services” section of each country’s Country Commercial Guide.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.