Regulatory Alerts2018-03-22
Acceptance of Company Electronic Contracts
SAMA mandates that banks accept electronically documented incorporation contracts for limited liability companies established by Saudi partners or residents. These electronic agreements remain legally valid without traditional notarization stamps, provided they display the Ministry of Commerce and Investment seal. Financial institutions must verify contract details through existing banking platforms or the "My Business" portal using the embedded verification link.
Translated Document
In reference to the Ministry of Commerce and Investment telegram No. 30417 dated 05/06/1439 H regarding some amendments to the documentation of incorporation contracts, allowing these contracts to be documented electronically for limited liability companies established by Saudi partners (not minors) or a Saudi individual or resident registered with a residency number. SAMA emphasizes that banks must accept incorporation contracts for limited liability companies that have been documented electronically and do not contain notarization stamps but only the stamp of the Ministry of Commerce and Investment. Verification of the incorporation contract data should be conducted using the currently applicable service used by banks or through the "My Business" portal via the link provided in the incorporation contracts (attached is a sample incorporation contract for reference ).
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