After the commercial registration (CR) is issued, the first thing to finish is your ZATCA file, followed by VAT registration in Saudi Arabia once revenue reaches the threshold, then GOSI, Qiwa and Mudad with your first employee. The business receives a unique ZATCA number automatically; the owner then logs in to the ZATCA portal and completes the zakat or income tax registration form.
Issuing the CR through the Saudi Business Center opens files for the business with the Ministry of Human Resources, ZATCA, GOSI, the national address service and the Chamber of Commerce. Those files still need to be completed and activated, and each body has deadlines that lead to fines or suspended services if missed.
This is an ordered checklist of the registrations due in your first weeks: what each body needs, when, and what must be ready in your accounting and payroll systems so the data agrees across platforms.
Why the Order of Registrations After the CR Matters
Each registration depends on the one before it. Mudad reads employee data from GOSI, GOSI data is tied to contracts on Qiwa, and an e-invoice needs a VAT number issued by ZATCA.
| Order | Body or platform | What you do | When |
|---|---|---|---|
| 1 | ZATCA | Complete zakat or income tax registration | Right after the CR is issued |
| 2 | ZATCA (VAT) | Mandatory or voluntary VAT registration | Within 30 days of the end of the month revenue crossed the mandatory threshold |
| 3 | Qiwa | Activate the business file and document employment contracts | Before or with the first hire |
| 4 | GOSI | Register employees and pay contributions | On hiring; payment within 15 days of the following month |
| 5 | Mudad | Upload the wage file under wage protection | Monthly, after salaries are paid |
| 6 | E-invoicing | Issue e-invoices, then integrate with Fatoora | From the first invoice after VAT registration; integration by wave |
ZATCA: Registrations for a New Business
A new business deals with ZATCA on three files: zakat or income tax, VAT, and e-invoicing. The first starts with the CR, the second depends on revenue, and the third follows VAT registration.
Zakat Registration
The ZATCA zakat journey explains that a business receives a unique taxpayer number once registered with the Ministry of Commerce. The taxpayer then logs in to the e-portal and completes the zakat or income tax registration form, using a national ID, an email address, the CR and, for companies, the articles of association.
ZATCA treats any activity intended to earn from capital or labour as subject to zakat. The zakat return must be filed and the amount paid within 120 days of the end of the zakat year, so first-year books need to be organised from the start, not in the final month.
The VAT Registration Threshold in Saudi Arabia
VAT registration is mandatory once annual taxable revenue exceeds SAR 375,000 and optional between SAR 187,500 and SAR 375,000. The VAT Implementing Regulations require you to apply within 30 days of the end of the month in which revenue crossed the mandatory threshold.
Example: a business that started in January reaches SAR 380,000 in taxable revenue by the end of May. It crossed the mandatory threshold during May, so it must apply within 30 days of the end of May. This is why owners need a monthly cumulative revenue report from their accounting system rather than a manual count at year end.
Also read: VAT in Saudi Arabia: how it works and how it developed.
The VAT Registration Certificate
VAT registration is a free online service on the ZATCA portal, with notification by SMS and email. Once registration is accepted, ZATCA issues a certificate of registration showing the effective date and the tax identification number.
From the effective date the business charges 15% VAT on its invoices, and the VAT number must appear on each invoice. Enter the number and effective date in your accounting system as soon as the certificate is issued, so no invoice goes out with the wrong settings before or after registration.
GOSI: Registering the Business and Employees
The business is registered with the General Organization for Social Insurance automatically with the CR, and each employee is registered on hiring. The employer pays the occupational hazards contribution of 2% of the contributory wage for every employee, Saudi or non-Saudi.
Saudi employees have additional contributions shared between employer and employee under the law that applies to them. Under the Social Insurance Law, contributions are due within the first 15 days of the following month, and late payment carries a fine of 2% of the unpaid amount for each month or part of a month. Government bodies and some companies may ask for a GOSI certificate proving the business is compliant before completing certain transactions.
Qiwa: Labor File and Employment Contracts
Qiwa is the business’s gateway to the Ministry of Human Resources and Social Development, and the business file there opens with the CR. Workforce services run through it, and the most important one for a new business is contract management and documentation.
The employer enters the business and employee details and the contract terms, such as job title, duration, working hours and financial obligations, then sends it to the employee’s Qiwa individuals account. Once both parties agree, the contract is certified by the Ministry. The wage in the documented contract is the baseline that GOSI records and Mudad files will later be checked against.
If you are preparing for your first hire and want contracts, payroll and attendance connected from the start, talk to the Daysum team and we will show you how the HR system works with accounting.
Mudad: Payroll and Wage Protection
Mudad is where the business uploads its monthly wage file under the Wage Protection Program. The service is free, the file is processed as soon as it is uploaded, and the business sees its compliance rate straight away.
- Sign up on Mudad and choose your business from the list linked to your ID.
- Under file uploads, choose a new file and set the wage type and month.
- Upload the wage file and confirm.
- Review your compliance information and explain any wage differences through the platform.
The file is checked against GOSI data, so a paid wage that differs from the registered one shows up in your compliance rate. The Daysum HR and attendance system calculates salaries from attendance, allowances and deductions, so the wage file and the payroll journal come from the same source.
E-Invoicing for a New Business: When Does It Start?
E-invoicing starts with the first invoice after VAT registration. Phase one, in force since 4 December 2021, requires all resident VAT taxpayers to issue electronic invoices and bans handwritten ones.
Phase two, integration with the Fatoora platform, is applied in waves announced by ZATCA. In wave 25, ZATCA targeted taxpayers whose VAT-subject revenue exceeded SAR 187,500 in any year from 2022 to 2025, with integration due by 1 February 2027. A new business is better off starting with a system that is integrated or ready to integrate from day one.
Daysum provides ZATCA-approved phase two e-invoicing inside its cloud accounting system, and a Salla app that carries store orders into accounting and on to Fatoora. Before choosing a solution, go through our ZATCA phase 2 e-invoicing checklist.
Conclusion: A Business Fully Registered with ZATCA, GOSI, Qiwa and Mudad in Its First Weeks
The CR opens the files; completing them is your job. Finish your ZATCA portal registration as soon as the CR is issued, track revenue monthly so you register for VAT on time, document contracts on Qiwa before the first payroll, then register staff with GOSI and upload the wage file to Mudad every month.
If you have not started the CR yet, see how to start a company in Saudi Arabia, from commercial registration to your first e-invoice, and to estimate what you will spend in year one, see company formation costs in Saudi Arabia.
When you are ready to issue your first invoice and run your first payroll from one connected system, contact the Daysum team to set up accounting, e-invoicing and payroll for your new business.
FAQs About Registering a New Business in Saudi Arabia
Registration is mandatory once annual taxable revenue exceeds SAR 375,000 and optional between SAR 187,500 and SAR 375,000. A mandatory registration must be filed within 30 days of the end of the month in which the threshold was crossed.
Once the CR is issued, the business receives a unique ZATCA number. You then log in to the ZATCA e-portal, choose registration and complete the zakat or income tax form, using your national ID, email, CR and, for a company, the articles of association. You receive a notification when registration is complete.
A business must issue electronic invoices from its first invoice after VAT registration, under phase one in force since 4 December 2021. Integration with Fatoora follows the wave ZATCA assigns. Wave 25 covered taxpayers with revenue above SAR 187,500, with an integration deadline of 1 February 2027.
No. ZATCA lists VAT registration as a free online service on its portal. The taxpayer completes the form and is notified by SMS and email. After acceptance, the registration certificate is issued with the VAT number and effective date.
Contributions are due within the first 15 days of the month after the month they cover, and the monthly payroll must be submitted in the same period. Late payment carries a fine of 2% of the unpaid amount for each month or part of a month. The employer pays the full contribution and deducts the employee's share from wages when paying them.
