MISA investment registration, limited liability company or branch registration, commercial registration and ZATCA tax and VAT onboarding — for Indian companies serving Vision 2030 projects and the Gulf's largest market.
Saudi Arabia is the largest economy in the GCC and, under Vision 2030, has opened almost every sector to 100% foreign ownership through the Ministry of Investment (MISA). For Indian contractors, engineering firms, IT companies, manufacturers, healthcare providers and traders, an on-the-ground presence is increasingly a pre-condition for winning work with government entities, Aramco, NEOM and the giga-projects.
Setting up in the Kingdom is more involved than in the UAE and rewards careful preparation. The process runs through MISA investment registration (which replaced the investment licence under the new Investment Law in force since 2025), the Ministry of Commerce commercial registration (CR), chamber of commerce membership, the general manager's Iqama, registration with the Zakat, Tax and Customs Authority (ZATCA) for corporate income tax and VAT, and enrolment with GOSI, Qiwa and Mudad for employment. Foreign-owned companies pay corporate income tax at 20% on the share of profits attributable to non-Saudi/GCC shareholders (Zakat at 2.5% applies to Saudi/GCC-owned shares), VAT is 15%, and withholding tax of 5% to 20% applies to payments to non-residents unless reduced by the India–Saudi Arabia tax treaty.
We prepare the MISA application and supporting documents in India, manage attestation, work with our licensed partners in Riyadh and Jeddah on the local steps, and set up your ZATCA and e-invoicing compliance so that you are ready to invoice from day one.
| Item | Position |
|---|---|
| Corporate income tax | 20% (foreign-owned share); Zakat 2.5% (Saudi/GCC share) |
| VAT | 15% |
| Withholding tax | 5–20%, reduced under India–KSA DTAA |
| Formation time | 6–10 weeks |
| Foreign ownership | 100% for most activities with MISA registration |
| Audit | Mandatory annual audit by a licensed Saudi auditor |
The standard vehicle for foreign investors, with one or more shareholders and MISA registration for the chosen activity (services, industrial, trading, contracting, etc.). Capital requirements depend on the activity — many service licences have no statutory minimum, while trading and some other activities carry minimum capital and investment commitments set by MISA.
Allows the Indian parent to operate directly in the Kingdom under its own name. Common for contracting and engineering firms executing specific projects. The parent is fully liable for the branch.
A representative office that supports the parent's distributors and customers with technical assistance and market studies, but cannot trade or invoice.
A MISA facility for foreign companies awarded a government contract, allowing them to execute it without full registration for the contract's duration.
A licensed entity that manages the group's regional operations from Saudi Arabia, required for bidding on many government contracts since 2024 and eligible for a 0% corporate tax and withholding tax package for 30 years.
Audited financial statements of the Indian parent, commercial registration, board resolution and power of attorney — translated into Arabic, notarised, attested by the MEA and the Saudi Embassy in India.
Application on the MISA portal with activity selection and attested documents; registration certificate issued on approval.
Notarised AOA, name reservation, CR from the Ministry of Commerce, chamber of commerce membership and national address registration.
Visa for the general manager, Iqama issuance, establishment file with the Ministry of Human Resources, GOSI and Qiwa registration.
ZATCA registration for income tax and VAT, corporate bank account, FATOORA e-invoicing onboarding and accounting set-up. Overall timeline is typically 6–10 weeks.
The Indian side of an overseas structure
For Indian resident promoters, setting up abroad is only half the job. Depending on how the entity is owned and funded, you may need to comply with the Overseas Investment Rules, 2022 (Form FC filing through your AD bank, a Unique Identification Number and an Annual Performance Report), the Liberalised Remittance Scheme limit of USD 250,000 per person per financial year, Place of Effective Management (POEM) rules that can make a foreign company tax-resident in India if it is controlled from here, transfer pricing on transactions with your Indian business, and Schedule FA disclosure of foreign assets in your Indian return. We build these into the plan from the start.
There is no general statutory minimum for an LLC, but MISA sets capital and investment requirements for particular activities. Service and consultancy licences are usually available without a minimum; trading (wholesale/retail) licences and some industrial licences carry minimum capital and multi-year investment commitments. We confirm the requirement for your specific activity before you commit.
Not for most activities. Since the opening of the economy under Vision 2030, foreign investors can own 100% of companies in services, industry, contracting, IT, healthcare, education and — subject to conditions — retail and wholesale trading. A few activities remain restricted or reserved for Saudi nationals.
Corporate income tax at 20% on profits attributable to non-Saudi shareholders, Zakat at 2.5% on the Saudi/GCC-owned share, VAT at 15% on domestic supplies and withholding tax on payments to non-residents (5% on dividends and technical services under the India treaty, 10% on royalties, 5% on interest). There is no personal income tax on salaries.
Most of the MISA and Ministry of Commerce steps can be completed through a power of attorney to our local partner. The general manager must travel to the Kingdom for Iqama biometrics, and banks typically require the authorised signatory to be present for account opening.
Companies are placed in Nitaqat bands according to the ratio of Saudi employees to expatriates in their sector and size. A newly established company has a grace period, after which it must meet the applicable ratio to obtain and renew work visas. We factor the hiring plan into the licence application.
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