HomeReady-to-use templates and contractsFormation and governanceCapital Increase Resolution
Capital Increase Resolution: A Ready Template Certified by a Licensed Saudi Lawyer
- Category
- Formation and governance
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
A partners' resolution documenting the capital increase, how it is paid up, how it is allocated among partners, and the admission of a new partner where needed.
A capital increase leaves a permanent mark on the company's ownership, so a verbal agreement or a bank transfer is not enough. It must be documented by a partners' resolution stating the capital before and after, the amount of the increase, how it is paid up, how it is allocated among the partners, and whether a new partner joined them. Sighaty template F-07 is written within the framework of the Companies Law and covers these elements in one consistent resolution, in two parallel languages with the Arabic text prevailing on any difference, so you hold a document fit both for amending the articles of association and for the company file.
Get the Capital Increase Resolution TemplateF-07What this resolution is and when you need it
Companies increase capital for different reasons: injecting liquidity for expansion, converting a partner loan or retained profits into capital, contributing an asset in kind, or admitting a new investor. What they share is that ownership percentages may shift, and that the competent authority, the bank, and the auditor will ask for a written resolution setting out what happened. The template gives you that resolution in a form showing the capital before and after without ambiguity.
- Injecting new cash from the partners to fund expansion.
- Capitalizing retained profits or amounts due to a partner instead of distributing or repaying them.
- Contributing an asset in kind to capital instead of cash.
- A new partner subscribing to the increase and joining the company.
What the smart-fill asks and what you receive
The smart-fill asks for the company name in Arabic and English and its commercial register number, the partners' resolution number, then the current capital, the new capital after the increase, and the amount of the increase itself. It then asks how the increase is paid up, with four options: in cash, by capitalizing amounts due or profits, by a contribution in kind, or by a new partner's subscription.
It then asks how the increase is allocated: whether each partner subscribes pro rata to his current holding so the percentages stay unchanged, or per a table you set out so the percentages shift, with each subscriber's name and ID. If a new partner is involved it asks for his name, and whether to include the accession clause in which he acknowledges being bound by the articles of association and what applies to the partners.
Within minutes you receive a formatted bilingual Word document, ready to sign and editable before approval, with figures consistent between the capital before, the amount of the increase, and the capital after. You submit it when amending the articles of association and keep it in the company's resolutions record.
Why a lawyer-certified template beats a free download
Most rejected capital increase resolutions fail for a simple reason: inconsistent figures or a vague mode of payment. A resolution stating that capital rose without showing whether the increase is in cash, by capitalization, or in kind, and without setting out its effect on the partners' percentages, is incomplete in practice. The Sighaty template is certified by a licensed Saudi lawyer, separates the mode of payment from the allocation and links them in one text, and is updated as regulations change, so your resolution lands complete instead of going through repeated edits on a free draft.
Frequently asked questions
Do the partners' percentages necessarily change on a capital increase?
No. If every partner subscribes pro rata to his current holding, the percentages stay the same and only the capital rises, and that is one of the two options in the template. If some subscribe and others do not, or a new partner joins, the percentages shift, and you then include the allocation table with the subscribers' names so the new position appears clearly in the resolution itself.
Can the increase be paid up other than in cash?
Yes. The template offers three alternatives to cash: capitalizing amounts due or retained profits, a contribution in kind, or a new partner's subscription. You choose the mode during fill-in and the resolution is drafted to match. Each mode has its own procedural requirements before the competent authority, and a contribution in kind in particular may require a valuation, so check that before filing.
What is the new-partner accession clause and why include it?
It is an optional clause signed by the incoming partner acknowledging that he is bound by the articles of association and by what applies to the other partners. Without it, a new partner can enter the ownership without being expressly tied to what the partners agreed earlier, particularly where a shareholders agreement exists between them. Including it closes that gap from day one.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.