Authorised Signatory Letter Template for Saudi Arabia

An Authorised Signatory Letter is a formal corporate document that grants specific individuals the legal authority to sign documents and conduct business on behalf of your company in Saudi Arabia. This document creates a clear legal framework for delegation of authority while protecting your company's interests and ensuring compliance with Saudi commercial regulations.

When do you need this document?

You need an Authorised Signatory Letter when your company requires designated individuals to handle specific business transactions or ongoing operations. This document is essential when opening corporate bank accounts, as Saudi banks require clear evidence of who can sign on behalf of the company. You'll also need it when entering into contracts with government entities, as the Ministry of Commerce and other authorities require proof of authorized representation. International businesses operating in Saudi Arabia commonly use this document to authorize local managers or representatives to handle day-to-day operations, regulatory filings, and commercial transactions. The letter is also crucial when your company needs to delegate authority for specific projects, acquisitions, or ongoing business relationships while maintaining proper corporate governance.

Key legal considerations

The scope of authority must be clearly defined to prevent unauthorized actions that could bind your company beyond intended limits. You should specify whether the authorization covers general business operations or is limited to specific transactions, amounts, or time periods. Consider including provisions that require multiple signatures for high-value transactions or sensitive business decisions. The document should clearly state any restrictions or limitations on the authorized person's power to ensure they cannot exceed their designated authority. It's important to include provisions for revocation of authority and specify how such revocation will be communicated to relevant parties. You should also consider requiring the authorized signatory to provide regular reports on their activities and maintain proper documentation of all transactions conducted under this authority.

Legal requirements in Saudi Arabia

Under Saudi Companies Law (Royal Decree No. M/3), companies must properly document the delegation of signatory authority through formal board resolutions and authorized letters. The document must include the company's full legal name, commercial registration number, and registered address as recorded with the Ministry of Commerce. The authorized person's details must include their full name, nationality, Saudi ID or Iqama number, and official position within the company. According to Ministry of Commerce Resolution 1071, certain authorizations may need to be registered with the Ministry of Commerce, particularly for ongoing commercial activities. The letter typically requires notarization under the Law of Public Notarization, especially when used for government dealings or significant commercial transactions. Corporate Governance Regulations require that the authorization be properly approved by the board of directors and documented in company records. Banks and government entities may require Arabic translations of the document, and some transactions may need additional attestation by the Chamber of Commerce.