Executive Rules: Establishment and Licensing Private Charitable Educational Institutions

​​Article 1:

Words and phrases wherever appear in these bylaws have the following meanings:

S No.WordDescription
1MinisterMinister of Education
2MinistryMinistry of Education
3CollegePrivate College
4EstablishmentPrivate Charity established for educational purposes (above secondary level)​

​Article 2:

The establishment is a private corporate entity established with aim to provide educational services, above secondary level, without making any profit. Its establishment and growth depends on continuous private self-funding.

Article 3:

Individual or group of individuals, or person, or legal persons can create a charity establishment.

Article 4:

Creation of charity establishment is conditional on following:

  • License applicant or applicants must be Saudi nationals.
  • License applicant or applicants must be well qualified.
  • An applicant or applicants for license must draft the statute of their institutions.

Article 5:

License applicant should fill in the application form and submit it to ministry along with following documents:

  • Copy of identity card of a person or persons or copy of license or commercial registration if applicant is legal person.
  • Copy of organization statute.
  • Details about establishment, especially finances and endowments that support in realization of objectives.

Article 6:

Establishment statute should include the following:

  1. Name of establishment its main premises and its address.
  2. Name or names of founders and their ages, occupations, residence addresses and signatures.
  3. Membership conditions, if there are any classifications, member rights and duties.
  4. Related administrative and representing rules, and identification of established organizations, their affairs and specializations (competencies).
  5. Their resources and its order and ways of expenditure.
  6. Mention of financial year start and end and type of financial monitoring of its finances.
  7. How to change system and how to merge, with others and create its branches.
  8. How to solve and settle accounts of the company and how to identify the recipient parties.

Article 7:

The institution license is as follows:

First:

After issuance of minister's decision for initial approval on formation of establishment, the establishment should do the following:

  • Choose administrative council according to article eight of these rules.
  • Provide the ministry with the member names of administrative council, and what council has decided related to tasks of chairman, deputy chairman, secretary general, treasury secretary and decide which bank or banks, it wants to deal with.

Second:

Issuance of minister's decision about final license of the institution, after submission of related documents, especially the financial and endowment documents in favor of institution according to article five, and submission of accurate institution budget audited by the licensed public accountant, and thus the institution becomes a legal entity.

Article 8:

The institution's administrative council must have five members selected by founder of the institution, minister should approve them, and statute must mention administrative council member's tenure, which is a maximum of four year renewable term.

Article 9:

If circumstances entail, minister may appoint temporary administrative council, in institutions interest and its objectives.

Article 10:

Institution must notify ministry with copy of MOM of every meeting of administrative council, and what decisions are made in last 20 days from the date of approval, and the ministry has rights to take objections on these decisions in 20 days from the date of its registration in the ministry.

Article 11:

Ministry will supervise institution's work and will monitor implementation of these guidelines and these rules issued, and in this regard has access to institution's books, documents, records. With the copy of financial list for the financial year, reviewed by licensed public accountant maximum four months from the end of financial year. In addition, a copy of forecast of new budget two months before the start of new financial year, for the new year signed by chairman of the administrative council, and institution should also submit other information required by the ministry.

Article 12:

Subject to the decision of council of ministers' no. 127 and dated 30-09-1998, in cases where there is no regulations stipulated herein, the company shall be governed by bylaws and regulations of charitable societies and foundations bylaws issued by the council of ministers' resolution no. 107 dated 23-01-1990.

Article 13:

Subject to the provisions and procedures about endowments for private institutions, it is not possible for the institution to spend from this endowment without prior approval from the minister.

Article 14:

Ministry of Education has the rights to interpret these rules.

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