300.1.4 Residents Investing Under Foreign Investment Law
No: 65681/67 Date(g): 3/7/2019 | Date(h): 1/11/1440 Status: In-Force This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.The bank may open accounts for entities wholly owned by a foreign investor or jointly owned by a foreign investor and a Saudi investor upon receiving the following:
300.1.4.1 Joint-Venture Entities Owned by a Saudi Investor and a Foreign Investor
This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.• Joint-venture entity owned by a foreign investor (natural or juristic) and a Saudi investor (natural or juristic):
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the memorandum of association or the articles of association and its annexes.
4. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that a copy of the Iqama is submitted (90) days after opening the account.
5. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the memorandum of association, the articles of association, or a decision from the board of directors or partners – or their equivalent. If the authorized person for the account is an agent acting on behalf of the principal, a copy of the power of attorney issued by a notary public or a notary in Saudi Arabia must be provided, or the power of attorney must be authenticated by the Saudi embassy or with an Apostille Authentication if issued outside Saudi Arabia.
6. Understanding the ownership structure and identifying the partners whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
300.1.4.2 Entities Wholly Owned by a Foreign Investor
This rule has been respectively amended according to the circular No. (41029537), dated 27/04/1441H, corresponding to 24/12/2019G ,and circular No. (44082632), dated 28/10/1444H, corresponding to 18/05/2023G,please refer to the Arabic version of this rule to read the last updated version.• Branches of foreign corporations or companies:
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
4. A copy of the commercial register or professional license, as well as the memorandum of association or the articles of association of the entity in the home country, certified by the Saudi embassy or with an Apostille Authentication.
5. Copies of the IDs of persons authorized to operate and manage the account, along with verification of their authorization by identifying them in a mandate from the main office of the company or corporation in the home country. The authorization must name the persons authorized to sign on behalf of the company in Saudi Arabia regarding the bank accounts.
6. Understanding the ownership structure and identifying the partners of the entity in the home country, whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
• An entity owned by a foreign investor or jointly owned by more than one foreign investor:
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license, or a copy of the professional license of the entity if the entity is a service provider.
3. A copy of the memorandum of association or the articles of association and its annexes.
4. A copy of the ID of the manager in charge in the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
5. Copies of the IDs of persons authorized to operate and manage the account, and verification of their authorization by identifying them in the memorandum of association, the articles of association, or a decision from the board of directors or partners – or their equivalent. If the authorized person for the account is an agent acting on behalf of the principal, a copy of the power of attorney issued by a notary public or a notary in Saudi Arabia must be provided, or the power of attorney must be authenticated by the Saudi embassy or with an Apostille Authentication if issued outside outside Saudi Arabia.
6. Understanding the ownership structure and identifying the partners whose names are mentioned in the memorandum of association or the articles of association, and verifying them using documents, data, or information from a reliable and independent source. -In cases where money laundering risks are lower-, the verification process can be completed later, after the account is opened, provided that it is done as quickly as possible. Any delay in identity verification must be necessary to avoid disrupting normal business procedures, and appropriate and effective measures should be applied to control money laundering risks.
• Foreign individual investor (Sole proprietorships):
1. A copy of the license issued by the Ministry of Investment.
2. A copy of the commercial register without the need to acquire the business license.
3. A copy of the Iqama for the manager in charge and the investor, owner of the entity. A copy of the passport can be sufficient, provided that the Iqama is submitted (90) days after opening the account.
4. The full address of the investor in his/her home country.
5. Copies of the IDs of persons authorized to operate and manage the account, as identified in a power of attorney certified by a notary public or a notary if issued inside Saudi Arabia and by the Saudi embassy or Apostille Authentication if issued outside Saudi Arabia, in the case of an agent or authorized person other than the owner of the entity.