Opening a Corporate Bank Account in Saudi Arabia: Documents, Steps and Common Delays for New Companies

Opening a Corporate Bank Account in Saudi Arabia: Documents, Steps and Common Delays for New Companies

A corporate bank account in Saudi Arabia is usually the last registration step before a new company can trade properly, and it is often the step that takes longest to close. The bank opens it only after the commercial registration exists and every document, signatory and owner has been checked under the Saudi Central Bank (SAMA) account opening rules. For a foreign-owned company, that file also includes attested documents from abroad and a clear picture of the group's ownership.

This guide is written for founders and finance leads of new Saudi companies, including LLCs with foreign shareholders and branches of foreign companies. It covers the setup sequence, SAMA's document rules, signatories, capital and the issues that most often cause delays. If you are still choosing a structure, read our overview of business setup in KSA first, and see how Sokrab Saudi Arabia supports foreign company setup in Saudi Arabia.

Table of Contents

• Where the corporate bank account fits in the setup sequence
• Documents for a corporate bank account in Saudi Arabia
• Foreign shareholders, managers and remote opening
• Authorised signatories and KYC expectations
• Capital deposit and the founders' account
• Common causes of delay and how to avoid them
• Practical checklist and how Sokrab Saudi Arabia can help

Where the corporate bank account fits in the setup sequence

Banks open accounts for an entity that already exists in the commercial register. SAMA's account opening rules for resident companies start with a copy of the commercial registration (CR) and the company's constitutional documents, so the bank account comes after incorporation, not before it. The one exception is a founders' account for depositing capital before registration, covered below.

For a foreign-owned company, the practical order is generally:

1. Investor registration with MISA. Foreign investors obtain registration with the Ministry of Investment before the commercial registration is issued. Our guide to the MISA licence in Saudi Arabia explains this stage.
2. Articles of association and CR. The articles are authenticated and the CR is issued through the Ministry of Commerce platform. See our article on commercial registration for Saudi business expansion.
3. Post-registration files. The Ministry of Commerce start-your-project guidance lists opening a file with the Ministry of Human Resources and Social Development, registering with ZATCA for Zakat, registering with GOSI, registering the national address through Saudi Post (SPL) and registering with the Chamber of Commerce for your location.
4. Bank account. The same Ministry guidance lists, among its market rules for operating entities, opening a bank account for the entity and not using personal accounts for business transactions.
5. VAT registration where it applies. VAT registration depends on the value of taxable supplies, so it may come before or after the account is opened. Our guide to VAT registration in Saudi Arabia covers the test.

Completing the post-registration files first usually avoids a second round of bank requests.

Documents for a corporate bank account in Saudi Arabia

SAMA's account opening rules for juristic persons set the minimum each bank must collect. The list depends on who owns the company. Individual banks can, and often do, ask for more.

On top of this regulatory minimum, the multinational-company page of Al Rajhi Bank lists an account opening form, the CR of the parent company as well as the Saudi entity, the national address, FATCA documentation, signatory IDs and a power of attorney where applicable. Ask your chosen bank for its current checklist before collecting documents abroad.

Foreign shareholders, managers and remote opening

Foreign ownership changes three things in the file: the documents that come from abroad, the identity documents of the manager, and the depth of the ownership checks.

• Documents issued abroad. For a branch, the head office's registration and constitutional documents must be attested by the Saudi embassy or carry an apostille. Where an agent signs under a power of attorney issued outside the Kingdom, Rule 300.1.4.1 also calls for embassy attestation or an apostille; a power of attorney issued in Saudi Arabia goes through a Saudi notary.
• Manager without an iqama yet. For foreign-invested entities, the rules allow a passport copy for the manager in charge, provided an iqama copy is submitted within 90 days of account opening.
• Remote opening. SAMA added rules for remote opening of bank accounts for foreign companies in February 2022. They apply to foreign companies established under the Foreign Investment Law and holding a MISA licence. The bank verifies the company and its general director from reliable, independent sources, and serves only the general director whose name and powers, including opening and managing bank accounts, appear in the memorandum of association. The general director may operate the account with a passport if the iqama is presented within 90 days.
• Ownership checks. Banks must understand the ownership structure and verify the named partners. Where money laundering risk is lower, the rules allow that verification to be completed after the account is opened, as quickly as possible, but this is the bank's decision.

Banks are not obliged to offer remote opening, so confirm first. Our article on LLC formation in Saudi Arabia explains how manager powers are set in the articles.

Authorised signatories and KYC expectations

The bank checks each signatory against the source of their authority, and gaps between the articles and the intended mandate cause most signatory delays.

• Source of authority. Signing powers must trace back to the articles of association, a partners' decision or a board decision, or to a notarised power of attorney. For a branch, the head-office mandate must name the persons authorised to sign.
• Identity documents. The bank needs copies of the IDs of the manager in charge and every person authorised to operate the account.
• Owners and board. The owners shown in the latest update of the articles, and board members, are identity-checked. If shares changed hands after the CR was issued, update the articles before applying.
• Purpose of the account. SAMA's 2019 amendments require banks to verify that accounts are used only for purposes consistent with the licensed activity, so expect questions about expected transactions, customers and counterparties.

These checks form part of the bank's anti-money laundering programme. A clear ownership chart with supporting documents answers many questions early.

Capital deposit and the founders' account

SAMA's Rule 300.1.3.1 allows a founders' account for a company under formation. The founders submit a letter asking for an account to deposit the company's capital, naming each founder and stating each founder's ownership percentage. The account is titled as the founders' account of the named company, and the bank verifies each founder's identity.

• Withdrawals. Payments from the account can only be made by the company's board after it is registered in the commercial register, and only once the bank has completed the full company documentation.
• Failed formation. If the company is not formed, the bank returns the funds to each founder in proportion to their share.

Whether a prior capital deposit is needed depends on the entity type. A 2017 SAMA circular relaying Ministry of Commerce procedures told banks to stop issuing capital deposit certificates for LLCs, because the deposit was no longer required before registration, while joint-stock companies and branches of foreign and Gulf companies were still listed as needing a prior deposit. Company law and Ministry procedures have changed since then, so confirm the current capital requirement for your structure with the Ministry of Commerce, MISA or a qualified adviser before you transfer funds.

Common causes of delay and how to avoid them

SAMA's 2019 amendments to the account opening rules set service levels: banks should open the account within one working day once requirements are complete, or within two working days where special approvals are needed, and they must tell the applicant in writing straight away about any missing items. The clock only starts once the file is complete. Common gaps:

• Unattested or untranslated foreign documents. Collect home-country documents in attested or apostilled form, with translations where the bank asks for Arabic, before the CR is issued.
• Manager powers that do not cover banking. If the articles or head-office mandate do not give the manager power to open and operate bank accounts, the bank will ask for a new resolution or power of attorney.
• Out-of-date ownership records. The bank checks owners against the latest version of the articles. Register any share transfer first.
• Name mismatches. Differences in the spelling of company or individual names between the CR, articles, passports and translations lead to queries. Agree one transliteration and use it everywhere.
• Missing national address or Chamber registration. Complete these files first.
• Signatory ID gaps. If the manager has no iqama yet, confirm that the bank accepts a passport under the 90-day rule and diarise the deadline.

Practical checklist and how Sokrab Saudi Arabia can help

Before applying, check that you have:

1. CR issued and the articles of association reflect the current owners and manager.
2. MISA licence or registration copy (foreign-owned companies and branches).
3. Head-office CR and constitutional documents, attested or apostilled (branches), and parent company CR where the bank asks for it.
4. Partners' or board resolution, or head-office mandate, naming signatories and their limits.
5. Notarised or attested power of attorney for any agent.
6. IDs, passports and iqamas for the manager, signatories, board members and owners.
7. Ownership chart down to the individuals who ultimately own or control the company.
8. National address, Chamber of Commerce, ZATCA and GOSI registrations.
9. FATCA forms and the bank's own account opening form.
10. A short note on activity and expected transactions.

Sokrab Saudi Arabia supports foreign investors with MISA licence applications, legal translation and notarisation of foreign documents, drafting articles of association, Chamber of Commerce registration and ZATCA registration, which together form much of the file a bank reviews. Through our regulatory compliance services for new businesses, we also offer pre-registration consultations and post-registration compliance reviews, and a serviced office in Riyadh may be discussed where a company needs a business address. After the account is open, our team can help with accounting and bookkeeping for foreign companies. Bank requirements and SAMA rules are updated from time to time, so confirm the current position with your bank, the relevant authority or a qualified adviser before you act.

Frequently Asked Questions

Preparing the document file for your new company's bank account? Contact Sokrab Saudi Arabia today.