What is the difference between a distributor, an agent and an importer of record?
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A distributor buys your goods and resells them for its own account; an agent sells for your account and earns a commission; an importer of record clears goods through customs in its own name but does not necessarily sell them. In Egypt the difference is legal, not just commercial: agents must be registered and wholly Egyptian-owned and gain termination compensation that cannot be waived, a dependent agent can create a taxable presence for you (corporate tax 22.5%), and only a licensed Egyptian importer can clear medical devices.
How do the four models compare?
| Question | Distributor | Commercial agent | Importer of record (service) | Sell-through distributor (UltraTeb Market Access) |
|---|---|---|---|---|
| Who owns the goods in Egypt? | The distributor, after buying | You, until sold | You — the IoR only clears them | We import in our name under a documentary collection |
| Who sets the resale price? | The distributor | Usually you | Not applicable — no selling | We do; you receive the agreed price per unit sold |
| Who carries the stock risk? | The distributor | You | You | Shared: you supply the goods, we fund landing, storage and selling |
| How is it paid? | Its resale margin | A commission | A fee per shipment | Its resale margin — only when your goods sell |
| Who invoices the hospital? | The distributor | You, or the agent in its own name for your account | Nobody — it doesn't sell | We do |
| Who files the EDA registration? | Usually the distributor | The agent or a scientific office | Sometimes, as a separate service | We handle it end to end; the agreement states how it is held |
| What happens on termination in Egypt? | Whatever the contract says | Statutory compensation that cannot be waived | Whatever the contract says | Whatever the agreement says — set out before you ship |
| Tax risk for you in Egypt | Generally low | Dependent-agent permanent establishment risk | Generally low for importing; you still need a seller | Generally low: we buy and resell in our own name — take your own tax advice |
Which Egyptian rules sit behind the comparison?
| Fact | Value | Source | As of |
|---|---|---|---|
| Who is a commercial agent | Anyone who usually concludes sales or purchases on behalf of producers, merchants or distributors — including in their own name for the principal's account | goeic.gov.eg | 1982 |
| Agent registration | Agency work is reserved to persons on the Commercial Agents Register; companies must be wholly Egyptian-owned; acting unregistered is a criminal offence | goeic.gov.eg | 1982 |
| Agent termination | Compensation on termination or non-renewal of an agency cannot be excluded by contract (Commercial Code Arts. 188–189) | foxwilliams.com | 2025 |
| Tax deducted by Egyptian payers | 1% advance tax on supplies, 3% on services, 5% on commissions (above EGP 300) | taxsummaries.pwc.com | |
| Corporate income tax | 22.5% on net taxable profit | taxsummaries.pwc.com | |
| Permanent establishment rule | Since Law 30 of 2023, a person who habitually concludes contracts that transfer ownership of the foreign enterprise's property can create a permanent establishment, unless an independent agent | eg.andersen.com | |
| Importer of record for medical devices | EDA import approvals and the customs filing are in the name of the licensed Egyptian importer listed on EDA's importer register | edaegypt.gov.eg | |
| Search demand we measured | 'importer of record' 3,600 searches a month; 'distributor vs agent' 170, worldwide (Google Keyword Planner, UltraTeb measurement) | ads.google.com |
The tax treatment depends on your country's treaty with Egypt. Take tax advice for your situation. Last verified 2026-09-25.
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When is a distributor the right model?
When your product has proven demand and a partner is willing to buy stock and carry the risk. You give up control of resale prices in exchange for predictable cash.
When is an agent the right model?
When you want to sell to large buyers in your own name and keep price control — and you accept the agency-law protection the agent receives and the tax questions a dependent agent can raise. In Egypt the agent must be on the Commercial Agents Register before it acts.
When is an importer of record enough?
When you already have a buyer — a tender award, a hospital order — and only need the goods cleared. An importer of record does not find customers, and for medical devices it must also hold the EDA importer licence listing your factory.
Where does a sell-through distributor fit?
It combines the distributor's clean legal position (we buy and resell in our own name) with consignment-style economics: we fund registration, import, duty and VAT, storage, marketing and selling, and you are paid when your goods sell. See sell-through, explained.
“Pick the model on what you want to control — price, risk or paperwork — then make sure the documents say the same thing as the handshake.” — Mohamed Dabees, founder, UltraTeb
UltraTeb Market Access is a zero-upfront-fee route into Egypt's medical market: UltraTeb registers, imports, markets, stores and sells your product, shares the risk, and pays you when it sells.
What does UltraTeb Market Access take on in this model?
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Importer of record
Every Egyptian filing — EDA, NAFEZA, customs — in our name.
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Distributor
We resell in our own name to private hospitals, lab chains, clinics and tenders.
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Registration
Handled end to end, with the terms in writing.
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Consignment-style payment
No upfront fees; you're paid when your goods sell.
Frequently asked questions
What is the difference between a distributor and an agent?
A distributor buys and resells for its own account; an agent sells for your account and earns a commission. In Egypt agents must be registered and receive non-waivable termination compensation.
What is an importer of record?
The party that clears goods through customs in its own name and is liable for duty and VAT. It does not have to sell the goods.
Can a foreign company be the importer of record in Egypt?
Not directly for medical devices: EDA import approvals and the customs filing are in the name of a licensed Egyptian importer. A foreign-owned Egyptian company can now join the Importers Register for up to 10 years.
Does using an agent create tax obligations for me in Egypt?
It can. Since 2023 a dependent agent who habitually concludes sales of your goods can create a permanent establishment, taxed at 22.5% corporate tax. Take tax advice.
How is an agent's commission taxed in Egypt?
Egyptian payers withhold 5% advance tax on commissions, against 1% on supplies.
Which model is UltraTeb Market Access?
A sell-through distributor: we import and resell in our own name, fund everything upfront, and you are paid when your goods sell.
Importer, distributor and sales team in one — with zero upfront fees.
We handle registration, import, duties, warehousing and selling. You're paid when we sell.