After the commercial registration: the registrations that follow

Can you complete the registrations after the CR from outside Saudi Arabia?

Partly. Most of these registrations are made online, through each authority’s own portal. But many Saudi government portals sign users in with Nafath, the Saudi government’s login app. Nafath needs a Saudi digital identity, which is linked to an ID issued in Saudi Arabia.

So in practice, the company usually needs a manager or another authorised person in Saudi Arabia to hold these logins. Until then, a representative acting under a power of attorney may handle some steps. Banks and some offices set their own requirements, and some steps need someone there in person. We tell you which steps apply before anyone books a trip.

What does a new Saudi company usually register after the commercial registration?

The registrations that usually follow the CR fall into five groups. First, tax and zakat with the Zakat, Tax and Customs Authority (ZATCA). Second, the company’s National Address with Saudi Post. Third, a labour file on Qiwa, the labour ministry’s platform. Fourth, social insurance with GOSI once it employs staff. Fifth, any separate licence its activity needs. Which ones apply, and in what order, depends on what the company does and whether it hires. We check this for your company before you plan the first hires.

The commercial registration is the company’s entry in the commercial register kept by the Ministry of Commerce. The CR records the company and its business activities. The registrations above let it pay tax, receive official mail, employ people and operate legally in its activity.

Is the commercial registration the same as a trading license or an industrial license?

The commercial registration is often what people mean by a “trading licence” or “trade licence”. An industrial licence is different. It is a separate licence for manufacturing, issued by the ministry responsible for industry. The same applies to other regulated activities, which may need a licence from their own regulator.

Premises such as an office, shop or warehouse may also need a licence from the local municipality. Whether your activity needs any of these depends on what the company will do. The Ministry of Commerce and each regulator publish the current rules, and we check which ones apply to your plan.

Which tax registrations does a new Saudi company need?

Usually a registration with ZATCA for zakat or income tax, and sometimes for VAT. According to ZATCA, it administers zakat, income tax, VAT and customs in Saudi Arabia. Zakat is a charge similar to a tax. Whether a company pays zakat, income tax or both depends on who owns it, and we check this for your structure.

VAT (value added tax) registration depends on the company and its activity. ZATCA sets the rules and the figures that decide it, so we don’t repeat them here. ZATCA also runs e-invoicing for businesses, called Fatoora. If the company will issue invoices, plan for it early.

What labour and social insurance registrations come before the first hire?

A labour file on Qiwa and an employer registration with GOSI. Qiwa is the online platform of the Ministry of Human Resources and Social Development (HRSD). Employers use it for employment contracts, work permits and the Saudization rating, called Nitaqat.

GOSI, the General Organization for Social Insurance, collects social insurance contributions for employees. If the company will employ expatriate staff, it also uses Muqeem, the Ministry of Interior platform for residency and visas. The rules on who may be hired, and on Saudization, are set by the labour ministry. We check them against your hiring plan.

Does a Saudi company need a National Address?

Yes, usually. The National Address is the official address record run by Saudi Post. Government bodies and courts use it to reach the company. It may already be set up when the CR is issued; if not, it comes early in this list.

Keep it up to date. Official notices, including notices about claims, can be sent to it. A company that misses them may lose time to respond.

How do the registrations after the CR usually work, step by step?

These steps follow the CR. The order can change, and some run side by side.

1. Tell us what the company will do and whether it will hire. A few lines are enough. Don’t send documents yet.
2. Agree who will act for the company in Saudi Arabia. This is usually a manager with a Saudi ID, or a representative under a power of attorney. Where a lawyer helps: checking that the powers given match what each person needs to do.
3. Register with ZATCA. Register for zakat or income tax, and for VAT if it applies.
4. Confirm the National Address. Check that it is set up and correct.
5. Check whether the activity needs a separate licence. For example an industrial licence or a municipal licence for premises.
6. Open the labour file on Qiwa and register with GOSI. Do this before the first employment contract is signed. Where a lawyer helps: preparing employment contracts that fit Saudi rules.
7. Keep every registration up to date. Changes to the CR, owners, managers or activity usually need updates elsewhere too.

You sign and certify documents in your country, and we coordinate the applications in Saudi Arabia. See how we work with clients outside Saudi Arabia.

We are writing pages on what comes after these registrations:

• Employment contracts, work permits and social insurance for a new company.

  Hiring your first staff in Saudi ArabiaComing soon

• The filings and renewals a new company usually faces.

  The first year: keeping a Saudi company compliantComing soon

What to prepare before you contact a Saudi lawyer

A few facts are enough for a first message. Have them ready:

• The company’s CR number and its registered business activities, if the CR is already issued.
• What the company will actually do, and where it will operate from.
• Whether it will hire staff in Saudi Arabia, and roughly when.
• Who will manage it in Saudi Arabia, and whether that person has a Saudi ID.
• Who owns it, so the zakat and income tax position can be checked.

Please don’t send documents or passport copies until we agree to act for you.

Frequently asked questions

Related

• Business setup in Saudi Arabia from abroad: what can be done remotely
• Branch, subsidiary or regional headquarters: choosing a structure in Saudi Arabia
• Setting up a company in Saudi Arabia as a foreign business
• Foreign investment registration in Saudi Arabia: how it works now