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Business Authorization Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Business Authorization Letter

"I need a Business Authorization Letter for our Saudi-based manufacturing company to authorize our Regional Sales Director to represent us in contract negotiations and sign distribution agreements across the GCC region from January 2025 to December 2025, with a maximum transaction value of 500,000 SAR per agreement."

Document background
The Business Authorization Letter is a crucial document in Saudi Arabian business operations, used when a company or individual needs to delegate specific powers or authorities to another party. It is particularly important in situations requiring formal representation before government authorities, banks, or business partners. The document must comply with Saudi Arabia's Commercial Agency Law, authentication requirements, and Shariah principles. It typically includes detailed specifications of granted powers, temporal limitations, and specific contexts in which the authority can be exercised. This type of authorization is commonly used for various business activities such as government transactions, banking operations, contract negotiations, or operational management. The document's format and content must meet strict legal requirements to ensure its validity and enforceability within the Saudi legal system.
Suggested Sections

1. Letter Header: Full legal name and address of the authorizing entity, including commercial registration number

2. Date and Reference: Current date and any reference numbers in both Gregorian and Hijri calendars

3. Recipient Details: Full name and details of the authorized person/entity

4. Subject Line: Clear indication that this is a Business Authorization Letter

5. Authorization Statement: Clear statement of the authority being granted and the capacity in which the authorized person may act

6. Scope of Authority: Detailed description of specific powers and activities being authorized

7. Duration: Validity period of the authorization, including start and end dates

8. Execution Block: Signature block with name, title, and company stamp of the authorizing party

Optional Sections

1. Limitations and Restrictions: Specific limitations on the authorized person's powers, used when the authority needs to be restricted

2. Revocation Clause: Terms for revoking the authorization, included when the authority might need to be terminated before the end date

3. Delegation Rights: Whether the authorized person can delegate their authority to others, included when sub-delegation might be necessary

4. Governing Law Statement: Explicit reference to Saudi law governance, included for international business relationships

5. Arabic Translation: Parallel Arabic text, required if the letter will be used with government authorities or courts

Suggested Schedules

1. Specimen Signature: Sample signature of the authorized person for verification purposes

2. Identity Documents: Copies of relevant identification documents of both parties

3. Commercial Registration: Copy of the company's commercial registration certificate

4. Board Resolution: If applicable, copy of the board resolution approving the authorization

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























Clauses


















Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Construction

Import/Export

Retail and Distribution

Professional Services

Healthcare

Technology and Communications

Energy and Utilities

Transportation and Logistics

Education

Hospitality

Relevant Teams

Legal

Compliance

Executive Leadership

Operations

Administration

Corporate Governance

Finance

Human Resources

Business Development

Corporate Affairs

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Legal Counsel

Compliance Officer

Operations Manager

Finance Director

Business Development Manager

Human Resources Director

Company Secretary

Regional Manager

Country Manager

Board Member

Commercial Director

Administrative Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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