The company’s regular representative in Saudi Arabia

The company’s regular representative in Saudi Arabia

The company is considered a legal entity with independent financial liability, as the company is held accountable in the Saudi system separately from the founding partners. 

The implementation system specified the persons responsible for the company’s funds and its legal actions towards third parties, including the company’s regular representative, as the system clarified the powers, tasks, and implementation procedures of the regular representative.

Who is the company’s regular representative?

Article 71 of the Executive Regulations of the Implementation System defines what is meant by the regular representative of a private legal person as the one authorized by the establishment’s system or its founding contract to have the authority to dispose of the matter in question, such as the Chairman of the Board of Directors, the Executive Director, the liquidator, or the judicial guardian.

The regular representative is considered the legal face of the company before third parties and has the official powers to act on its behalf in accordance with the company’s articles of association.

What are the duties of a regular representative?

• Representing the company before all parties and courts.
• Protect the company’s interests when making any decision.
• Financial and banking account management.
• Signing legal documents on behalf of the company, such as contracts and agreements.
• Ensure the company adheres to rules and regulations.
• Communicate with government agencies, submit the required papers and documents, and ensure their accuracy.
• Educating company employees about the laws to avoid violating them.

What are the conditions for a regular representative?

The following conditions are required to obtain a regular representative license for the company:

• To be an employee of the company.
• He holds a bachelor’s degree in Sharia or regulations.
• The existence of a legitimate agency issued by the company representative (manager), provided that:
  • The duration of the agency shall not be less than one year.
  • To include the unified national number of the facility or company.
  • The agency must include the following items:
    • Claim.
    • File a lawsuit.
    • Pleading.
    • The defender.
• Attach a certificate stating the terms and wages issued by the General Organization for Social Insurance.
• Attach a copy of the employment contract.
• Having a statement that the employee works in the company’s legal department.
• Attach official data and information about the company.
• Attach copies of the company’s articles of association and commercial register.

What is the difference between a regular representative and a legitimate agent?

The difference between a regular representative and a legal agent is that the regular representative is stipulated in the company’s incorporation contract and is an employee in the company’s legal department.

A legitimate agent is an agent who acts on behalf of an individual or company under a power of attorney contract between the two parties.

The regular representative is responsible for pleading all company cases only, while the agent can represent several clients simultaneously.

When will it be implemented on the regular representative?

It is the responsibility of the company’s regular representative to disclose to the enforcement court the funds sufficient to pay the value of the company’s financial claim. 

However, if the regular representative refrains from disclosing, implementation will be carried out on the company’s regular representative if he is the one responsible for obstructing implementation.

The enforcement judge has the right to prevent the regular representative from traveling for reasons of disclosure in accordance with Article 17 of the Executive Regulations of the Enforcement System.

How do I add a regular representative to the company?

You can add a regular representative to plead company cases through the Najiz platform of the Ministry of Justice by following the following steps:

• Log in to the Najiz platform with the unified national access account.
• From electronic services, choose “judiciary”
• Log in to the service “Add a representative”
• Click on the icon “Submit a new request”
• Determine the required case.
• Click on the “New Order” icon from the Orders icon.
• Select a request “add a representative”
• Fill in the required data.
• Submit the request.

Whether you’re a startup owner or an established organization, having a skilled attorney who specializes in business cases makes a real difference. 

Through the office of Lawyer Abdul Majeed Al Rashid, you can communicate directly with certified commercial lawyers, to obtain accurate legal solutions in contracts, commercial disputes, and the powers of the regular representative.