In short
- Register with the Zakat, Tax and Customs Authority, and for VAT once taxable supplies pass the mandatory threshold.
- Open the company's files on the HR platforms and with social insurance before the first hire.
- Draft the first contracts under Saudi law, and notarize the documents that need it.
Why this stage matters
Most investors focus on registering with the Ministry of Investment and obtaining the commercial registration, then find that running the company needs a chain of further registrations that depend on each other. Doing them in the right order saves time and avoids fines.
1. National address and bank account
A national address is required for most government services. The company bank account is needed to deposit capital where required and to pay salaries. Banks usually ask for the commercial registration, the articles of association and the IDs of authorised signatories.
2. Zakat and tax
The company registers with the Zakat, Tax and Customs Authority. The foreign shareholder's share is subject to income tax and the Saudi shareholder's share to zakat. VAT registration is mandatory once taxable supplies exceed SAR 375,000 a year, and registered businesses must meet the e-invoicing requirements.
3. Employees
Before the first hire, the company needs a file on the Qiwa platform to document employment contracts, registration with the General Organization for Social Insurance, and a link to the Mudad wage protection platform. Saudization quotas depend on the activity and size of the company under the Nitaqat programme, so plan them before recruiting from abroad.
4. Operating licences
Some activities need a sector licence from the competent authority, and most premises need a municipal licence through the Balady platform. Check that the premises can be licensed before signing a long lease.
5. The first contracts
- Office lease: term, early termination and who pays for fit-out.
- Employment contracts: documented on Qiwa. Arabic is the language of the contract; where another language is used alongside it, the Arabic text prevails (Labour Law, Art. 9).
- Supply and distribution contracts: governing law, dispute resolution, and whether arbitration suits you.
- The manager's powers: set out clearly in the articles of association or in a notarized power of attorney.
Mistakes we see often
- Hiring before the company file is complete, which delays residence permits and visas.
- Signing a long lease for premises that cannot obtain a municipal licence.
- Using template contracts from the parent company's country without adapting them to the Civil Transactions Law.
- Forgetting to update authorised signatories with the bank and authorities after a change of manager.
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Requirements change and vary by activity and city. This is a general checklist to order your steps, not a substitute for reviewing your case.
Content on this website is provided for general information only and does not constitute legal advice. Contact us for advice on your specific situation.