What a power of attorney can and cannot do in a Saudi company setup, how foreign powers are made valid, and the misunderstandings that stall filings.
Most foreign investors set up a Saudi company through an attorney, such as a consultant, lawyer or future manager, acting under a power of attorney. A power issued abroad must be notarised and authenticated so the Saudi authorities accept it, and powers issued inside the Kingdom are typically created through the Ministry of Justice Najiz platform. The myths below come from treating any signed authorisation as enough.
How to test a claim like this
For any claim about what an attorney can do, ask whether the specific act is written into the power, whether the power is in a form the receiving authority accepts, and whether it is still valid. If the answer to any of these is unclear, the attorney may be turned away at the counter.
Myth 1: A general power of attorney covers everything.
Reality: Authorities and banks often want the specific acts listed, such as signing articles, opening accounts or dealing with MISA. A general wording can be rejected for particular steps.
How to check it yourself: Ask your adviser for the list of acts each authority expects to see.
Myth 2: A power signed abroad can be used in Saudi Arabia as it is.
Reality: Foreign powers usually need notarisation, then an apostille or legalisation route accepted for your country, and a certified Arabic translation.
How to check it yourself: Confirm the accepted authentication route with your adviser before signing.
Myth 3: One power of attorney works for every authority.
Reality: Different bodies can have different requirements on wording, form and recency. A power accepted by one may need supplementing for another.
How to check it yourself: Show the draft to the adviser who will use it at each authority.
Myth 4: Banks accept a power of attorney instead of meeting the signatories.
Reality: Banks have their own KYC rules, and many insist on meeting authorised signatories in person regardless of any power.
How to check it yourself: Ask the bank what it accepts before relying on an attorney for account opening.
Myth 5: The power lasts until it is used.
Reality: Powers can have stated expiry dates, and authorities may reject older documents even without an expiry. Changes in the grantor, such as a new board, can also affect validity.
How to check it yourself: Note the expiry and plan to use the power promptly.
Myth 6: Granting a power is risk-free because the attorney works for you.
Reality: An attorney with broad powers can bind the company or the grantor in ways you did not intend. Revoking a power also needs formal steps.
How to check it yourself: Limit the powers to what setup requires and record how to revoke them.
Myth 7: Najiz is only for Saudi citizens.
Reality: Najiz serves users in the Kingdom broadly, including residents and companies, for many notarial acts such as powers of attorney. Eligibility for specific services depends on the user and the act.
How to check it yourself: Check the current Najiz service for the kind of power you need.
What this changes in your decision
- List the specific acts the attorney must perform and write them into the power.
- Confirm the authentication route for foreign powers before signing.
- Check bank requirements separately from government requirements.
- Use powers promptly and track expiry dates.
- Keep powers narrow and know how to revoke them.
Domira works with foreign investors on the property side of entering Saudi Arabia: finding land or premises, due diligence, design, construction and asset management. For licensing, tax and legal steps, work with a licensed adviser; we coordinate with yours so the property decision fits the structure you choose.
Frequently Asked Questions
Can someone set up my Saudi company for me with a power of attorney?
Yes. Many foreign investors appoint a consultant, lawyer or future manager as attorney to handle registrations. The power must list the acts needed, be authenticated in a form the authorities accept and be translated into Arabic where issued abroad. Some steps, particularly at banks, may still need signatories in person.
How do I make a foreign power of attorney valid in Saudi Arabia?
Typically it is signed before a notary in the issuing country, then authenticated by apostille or by legalisation through the foreign ministry and the Saudi embassy or consulate, depending on the country and document, and translated into Arabic by a certified translator. Confirm the route for your country with your adviser before signing.
Can a Najiz power of attorney be used to register a Saudi company?
Najiz, the Ministry of Justice electronic platform, issues and revokes powers of attorney within the Kingdom, and such powers are widely used for company matters once the grantor has the needed access. Whether a particular authority or bank accepts it for a given setup step depends on the wording and the acts listed. Check the current services on the platform and confirm acceptance with the receiving body.
How do I revoke a power of attorney given for Saudi company setup?
Revocation follows a formal process, usually through the notary or platform where the power was created, such as Najiz for powers issued in the Kingdom. Tell the attorney and the authorities and banks that relied on it. Record the revocation date in your company records.
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