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Letter of Authority
"I need a letter of authority to authorize my financial advisor to manage my bank accounts, including transactions up to $10,000, for a period of 12 months starting November 1, 2025."
What is a Letter of Authority?
A Letter of Authority empowers someone to act on behalf of another person or organization in Saudi Arabia. It's similar to a power of attorney but typically more limited in scope and duration. Companies often use these letters to delegate specific tasks like signing contracts, handling customs clearance, or managing government transactions.
Under Saudi law, these letters must clearly state the authorized person's powers, responsibilities, and any time limits. Banks, government agencies, and businesses across the Kingdom recognize Letters of Authority when properly notarized by authorized entities like the Chamber of Commerce or Ministry of Justice. The document needs to be in Arabic, though bilingual versions are common for international dealings.
When should you use a Letter of Authority?
Use a Letter of Authority when you need to delegate specific business tasks in Saudi Arabia but can't handle them personally. Common situations include authorizing someone to process visa applications, complete customs clearance, sign specific contracts, or represent your company at government offices like the Ministry of Commerce or Jawazat.
This document proves especially valuable during time-sensitive business operations where physical presence isn't possible. For example, when your company needs quick customs clearance for incoming shipments, or when multiple branch locations require simultaneous document processing at different government departments. Getting it notarized early prevents operational delays and keeps business running smoothly.
What are the different types of Letter of Authority?
- Authorisation Letter To Act On Behalf: Broadest form giving general representation rights for multiple transactions
- Authorization Letter For Cheque Collection: Specific to banking transactions and cheque handling
- Authorization Letter For Collecting Money: Focused on cash transactions and financial collections
- Authorization Letter To Claim: Used for claiming documents, packages, or other items
- Authorization Letter For Claiming My Salary: Specifically for salary collection from employers
Who should typically use a Letter of Authority?
- Business Owners: Issue Letters of Authority to delegate tasks during absences or for multiple location management
- Corporate Representatives: Draft and validate these letters for company transactions with government entities
- Authorized Agents: Receive authority to handle specific tasks like customs clearance or document processing
- Government Departments: Accept and verify these letters for official transactions, especially Ministry of Commerce and Jawazat
- Banks and Financial Institutions: Process Letters of Authority for financial transactions and account management
- Legal Representatives: Review and notarize these documents to ensure compliance with Saudi regulations
How do you write a Letter of Authority?
- Basic Details: Gather full legal names, ID numbers, and contact information for both authorizer and authorized person
- Scope Definition: List specific tasks, transactions, or powers being delegated with clear start and end dates
- Documentation: Prepare copies of commercial registration, national IDs, and any relevant business licenses
- Language Requirements: Draft in Arabic, with English translation if needed for international use
- Format Compliance: Use our platform to generate a legally-sound template that meets Saudi requirements
- Authentication Plan: Identify which authority will notarize the letter (Chamber of Commerce or Ministry of Justice)
- Validation Check: Review all details against official IDs and ensure proper formatting before submission
What should be included in a Letter of Authority?
- Header Information: Full legal names, ID numbers, and addresses of both parties in Arabic script
- Authorization Statement: Clear declaration of authority being granted, using standard Arabic legal terminology
- Scope Details: Precise list of permitted actions, transactions, or responsibilities being delegated
- Time Framework: Explicit start and end dates for the authorization period
- Geographic Jurisdiction: Where the authority can be exercised within Saudi Arabia
- Legal References: Citations of relevant Saudi laws governing the delegation of authority
- Authentication Block: Space for official stamps, notary endorsements, and witness signatures
- Signature Section: Designated areas for both parties' signatures with date fields
What's the difference between a Letter of Authority and a Certificate of Authority?
A Letter of Authority differs significantly from a Certificate of Authority in several key ways, though both documents deal with organizational powers. Understanding these differences helps you choose the right document for your situation in Saudi Arabia.
- Duration and Scope: Letters of Authority typically cover specific, time-limited tasks, while Certificates of Authority establish permanent operational rights
- Legal Purpose: Letters delegate specific powers to individuals for particular transactions, while Certificates prove a company's legal right to conduct business in the Kingdom
- Issuing Authority: Letters can be issued by any authorized person within an organization, while Certificates must come from government regulators
- Verification Process: Letters require notarization for each use, while Certificates undergo one-time government validation and remain valid until revoked
- Usage Context: Letters work for individual transactions like customs clearance or document collection, while Certificates demonstrate broader corporate legitimacy
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