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Amendment of Rules (300-1-3) and (300-1-3-1) of Account Opening Rules

No: 44061480 Date(g): 18/2/2023 | Date(h): 28/7/1444 Status: In-Force

Translated Document

In reference to Rule (300-1-3) concerning resident companies and Rule (300-1-3-1) concerning joint-stock companies, both of which are part of the Account Opening Rules communicated under SAMA Circular No. (67/65681) dated 01/11/1440H, as well as to the Companies Law issued by Royal Decree No. (M/123) dated 01/12/1443H.

We inform you of the amendment of the two rules mentioned above as outlined in the attached document

For your information and action accordingly as of this date.

Amendments to the requirements for opening and managing bank accounts for resident companies as outlined in Rule (300-1-3), and joint-stock companies as outlined in Rule (300-1-3-1)

First: Amendment of paragraph (2) of Rule (300-1-3) related to resident companies to state as follows: "2. Obtaining a copy of the memorandum of association or the articles of association and their annexes".

Second: Amendment of Rule (300-1-3-1) related to joint-stock companies as follows:
 

  • Amend the title of the rule to state as follows: "Joint-Stock and Simplified Joint-Stock Companies".
     
  • Amend the (first article) of the rule to state as follows:
     

The bank accounts for depositing and retaining the capital of these companies under formation shall be opened as follows:
 

1.A letter from the founders, including at a minimum: a request to open the account stating its purpose as "Depositing the capital of the company (…name of the company) Under Formation," the names of the founders, and the ownership percentage of each founder in the company's capital.
 
2.The name of the account shall be as follows :"Founders Account of the Company (name of the company) "
 
3.Verifying the identity of the company's founders.
 
4.Payment from the account shall only be allowed by the company's board of directors after its registration in the commercial register and the bank's completion of the required documents in accordance with the requirements of Rule (300-1-3) related to resident companies. In the event the company's formation is not completed, the bank must return the amounts to each founder according to their share of the capital.
 
  • Amend the title of the (second article) of the rule to state as follows: "Licensed Companies".