An illustrative SAR plan for the first 90 days after commercial registration, showing which registrations to finish and how cash flows before trading.
The first 90 days after the CR decide whether your Saudi company starts trading quickly or spends months half set up. In that window you need the national address, bank account, municipal licence, ZATCA registration, employer accounts and first hires. The worked example below uses illustrative numbers to show how to phase the tasks and the cash so that trading starts as early as possible.
The situation
A foreign-owned services LLC has just received its CR. It has a signed client contract that can start as soon as the company can invoice. The manager wants a 90-day plan and a view of cash needs before the first client payment arrives.
Assumptions (illustrative)
- Paid-in capital available once the bank account opens: SAR 500,000, assumed.
- Office rent paid quarterly in advance: SAR 36,000, assumed.
- Manager and two staff: SAR 70,000 per month from day 30, assumed.
- One-off registrations, tools and fit-out: SAR 45,000, assumed.
- First invoice issued on day 60 for SAR 180,000, paid on day 105, assumed.
- Adviser fees for post-CR steps: SAR 25,000, assumed.
Step 1: Days 1 to 30: registrations
Rent of SAR 36,000 plus one-off costs of SAR 45,000 plus adviser fees of SAR 25,000 equals SAR 106,000.
This month is for the national address, bank account, municipal licence and ZATCA registration, not for hiring.
Step 2: Days 31 to 60: team starts
Salaries of SAR 70,000 for one month.
Staff join once the employer accounts exist, so their residency and payroll can be handled properly.
Step 3: Days 61 to 90: delivery
Salaries of SAR 70,000 for a second month.
The first invoice goes out on day 60, but payment arrives only on day 105, after the 90-day window.
Step 4: Cash spent by day 90
SAR 106,000 plus SAR 70,000 plus SAR 70,000 equals SAR 246,000.
The company spends nearly half of its capital before receiving anything from its client.
Step 5: Cash remaining at day 90
SAR 500,000 minus SAR 246,000 equals SAR 254,000.
This covers about three and a half months of salaries if the client pays late, which is a reasonable buffer.
Step 6: Effect of a 30-day bank delay
If the account opens 30 days late, capital, hiring and invoicing all move back, adding one month of rent of SAR 12,000 and pushing the first payment to around day 135.
The bank account is the step that most often moves the whole plan, so it should start on day one.
What changes the answer
- If the client requires the municipal licence before work starts, delays at Balady move the invoice date.
- Longer client payment terms reduce the cash buffer at day 90.
- Hiring before the employer accounts exist creates payroll and residency problems.
- VAT registration timing affects whether the first invoice can include VAT correctly.
- A larger fit-out or deposit reduces the cash left for salaries.
What the numbers tell you
- Start the bank account and ZATCA registration on the day the CR is issued.
- Delay hires until employer accounts and payroll can work.
- Plan for payment well after the first invoice.
- Keep a buffer of several months of salaries at day 90.
- Review the plan weekly and move tasks as dependencies clear.
Limits of this example
Every figure above is an illustrative assumption used to show the method, not a quote, valuation or market rate. Costs, rates, fees and regulations change and must be confirmed with the relevant authority, lender or supplier before you commit.
Domira works with foreign investors on the property side of entering Saudi Arabia: finding land or premises, due diligence, design, construction and asset management. For licensing, tax and legal steps, work with a licensed adviser; we coordinate with yours so the property decision fits the structure you choose.
Frequently Asked Questions
What should I do immediately after getting a Saudi commercial registration?
Register the national address, start bank account opening, apply for the municipal licence for your premises, register with ZATCA, and set up the employer accounts you need before hiring. Also record every renewal date. The bank account and ZATCA registration usually take longest, so start them first.
Can my Saudi company invoice clients before it has a bank account?
In principle an invoice can be issued once the company is registered for tax where required, but without a bank account it cannot receive payment properly, and clients will usually want to pay into an account in the company name. Treat the bank account as a condition for starting paid work.
When should a new Saudi company start hiring staff?
Once the company has the employer accounts it needs, such as GOSI and Qiwa, and can run payroll through its bank account. Hiring earlier creates problems with residency, payroll and social insurance registrations. A manager is often appointed earlier, with the rest of the team joining once the entity can employ properly.
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