300.1.4.1 Joint-Venture Entities Owned by a Saudi Investor and a Foreign Investor

No: 65681/67

Date(g): 3/7/2019 | Date(h): 1/11/1440

Status: In-Force

Effective from Jan 01 2024 - Dec 31 2023
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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.