Indian companies and entrepreneurs can own 100% of a Saudi company in most activities. The route is: MISA Investment Registration (it replaced the old MISA licence in February 2025), then the Commercial Registration (CR), then the Chamber, National Address, Balady, GOSI, Qiwa, Muqeem and ZATCA registrations, a bank account and the general manager’s iqama. Indian documents can be apostilled by India’s MEA because Saudi Arabia joined the Apostille Convention in December 2022. On the Indian side, the investment must follow RBI’s Overseas Investment (ODI) rules. A full setup typically takes 4–12 weeks.
Why Saudi Arabia is a strong market for Indian businesses
India and Saudi Arabia are among each other’s most important trading partners. India is Saudi Arabia’s second-largest trading partner, and Saudi Arabia is India’s fourth-largest, with bilateral trade of about USD 52.8 billion in FY2022–23. Since 2019 the two governments have worked through the India–Saudi Strategic Partnership Council, whose economy and investment committee covers energy, technology, agriculture and food security, and industry and infrastructure.
For Indian companies this means:
- Huge demand under Vision 2030 in construction, engineering and EPC, IT and software, healthcare and pharma, food and FMCG, renewable energy, logistics and manpower services.
- Supplier opportunities with Saudi Aramco, SABIC, Ma’aden, SEC, NEOM and government entities. These need a Saudi company and CR.
- A large Indian community of more than two million people, which makes hiring, partners and early customers easier.
- Short distance and strong links between Indian and Saudi cities, plus Indian banks, professionals and service providers already in the Kingdom.
Can an Indian own 100% of a company in Saudi Arabia?
Yes, in most activities. Under the Investment Law in force since February 2025, Indian companies and individuals register with the Ministry of Investment (MISA) and can hold 100% of a Saudi company. There is no need for a Saudi sponsor or local partner for most activities. A list of excluded activities still applies, and some sectors need extra approvals or capital, for example certain trading, media and security activities. We check your exact activity codes before you apply.
Which structure should an Indian business choose?
| Option | Best for Indian… | Notes |
|---|---|---|
| LLC (subsidiary of the Indian company) | Private limited companies and LLPs expanding to KSA | Most common; limits liability to the Saudi company; easiest for hiring and supplier registration |
| Single-shareholder LLC | One Indian company or one individual owner | Same as an LLC with one shareholder |
| Branch of the Indian company | Companies delivering a specific Saudi contract | Not a separate legal entity; the Indian parent is liable |
| Simplified Joint Stock Company | Funded start-ups and tech companies | Flexible governance and share classes |
| Regional Headquarters (RHQ) | Large Indian groups running the Middle East from Riyadh | Incentives and eligibility conditions apply |
For most Indian SMEs the right choice is an LLC owned by the Indian company. Read the full comparison in our complete business setup guide.
Step-by-step process for Indians
| Step | In India | In Saudi Arabia | Typical time* |
|---|---|---|---|
| 1. Plan | Board decision; check ODI route with your AD bank | Choose activity codes, structure, capital, office city | 1 week |
| 2. Documents | Collect, notarize and apostille via MEA | Arabic translation by a certified translator | 1–3 weeks |
| 3. MISA | — | Apply for the MISA Investment Registration Certificate | Days to 2 weeks |
| 4. Company | ODI remittance and reporting through your AD bank | Trade name, Articles of Association, Commercial Registration (CR) | Days |
| 5. Registrations | — | Chamber of Commerce, National Address, municipality (Balady) licence | 1–2 weeks |
| 6. Government portals | — | GOSI, Qiwa, Muqeem, Mudad, ZATCA (Zakat/income tax and VAT) | 1–2 weeks |
| 7. Bank and capital | Transfer capital under ODI rules | Open the corporate bank account; deposit capital if required | 1–4 weeks |
| 8. People | — | General manager work visa and iqama; first employee visas | 2–6 weeks |
*Typical for complete files. Times vary by activity and document readiness.
Documents needed from India
| Document | How to prepare it |
|---|---|
| Certificate of Incorporation (MCA) | Notarize, then MEA apostille |
| Memorandum and Articles of Association / LLP agreement | Notarize and apostille |
| Board resolution approving the Saudi company | Names shareholders, capital and general manager; notarize and apostille |
| Latest audited financial statements | Usually the last financial year; apostille |
| Power of attorney | For the person who will complete the setup in Saudi Arabia; apostille |
| Passport copies | Directors, shareholders (if individuals) and the proposed general manager |
| Saudi office lease | Signed in Saudi Arabia; needed for the National Address, Balady and visas |
Apostille instead of embassy attestation: Saudi Arabia joined the Hague Apostille Convention on 7 December 2022, and India has been a member since 2005. Indian public documents can therefore be apostilled through the Ministry of External Affairs (MEA) instead of the older chain of state attestation, MEA and Saudi embassy legalization. Commercial documents are normally notarized first. Requirements can differ by authority, so confirm the list with us before you send anything for apostille.
After apostille, documents must be translated into Arabic by a certified translator for MISA and the Ministry of Commerce.
Rules on the Indian side: ODI and FEMA
Money sent from India to set up a Saudi company is Overseas Direct Investment (ODI) under India’s Foreign Exchange Management (Overseas Investment) Rules and Regulations, 2022 and the RBI Master Direction on Overseas Investment.
- Indian companies and LLPs invest through their Authorised Dealer (AD) bank, which handles the required ODI forms and reporting. Limits are linked to the Indian entity’s net worth.
- Resident individuals can invest within the Liberalised Remittance Scheme (LRS), subject to the conditions for individuals in the ODI rules.
- Ongoing reporting continues every year, for example the annual performance report, as required by your AD bank.
Talk to your AD bank and Indian CA before transferring capital. We coordinate the Saudi side and the timing so the Saudi capital deposit matches your ODI remittance.
Costs for Indians setting up in Saudi Arabia
Costs depend on activity, structure, city and number of visas, so get a written estimate for your case. Plan for:
| Cost item | Notes |
|---|---|
| Apostille and notarization in India | Per document, through MEA-authorized agencies |
| Arabic translation | Certified translator in Saudi Arabia |
| MISA investment registration and annual fees | Fee structure changed under the new Investment Law; confirm current official fees |
| CR, trade name and Chamber of Commerce | Ministry of Commerce and Chamber fees |
| Office lease | Required in most cases |
| Municipality and Civil Defense | Depends on premises and activity |
| Visas, iqama and medical insurance | For the general manager and each employee |
| Capital | Must be adequate for the business; some activities have specific minimums |
| Accounting, VAT and audit | Monthly bookkeeping, VAT returns and annual Zakat/income tax return |
Taxes: Saudi Arabia and India
| Item | What applies |
|---|---|
| Saudi corporate income tax | 20% on profits attributable to the Indian (foreign) shareholders |
| Zakat | 2.5% on the Saudi or GCC-owned share, if any |
| VAT | 15%; registration mandatory above SAR 375,000 of annual taxable supplies |
| Withholding tax | 5%–20% on certain payments to India and other countries (e.g. dividends 5%) |
| India–Saudi Arabia DTAA | The double taxation avoidance agreement limits withholding rates and lets you claim credit for Saudi tax in India |
| In India | Dividends from the Saudi company are taxable in India, with credit for Saudi tax under the DTAA; transfer pricing applies to transactions with the Indian parent |
Use a Tax Residency Certificate and the treaty forms where relevant, and plan with an Indian CA and a Saudi accountant together. See our VAT guide and accounting, VAT and ZATCA support.
Visas for Indian founders and staff
- Before setup: Indian passport holders normally need a business visit visa to visit Saudi Arabia for meetings. Holders of certain valid visas, such as US, UK or Schengen visas, may qualify for an eVisa. Check the current options on the official Saudi visa platform before you travel.
- After setup: the company sponsors the general manager’s work visa and iqama, then visas for employees through Qiwa, within your Saudization (Nitaqat) band.
- Engineers and other professionals may need professional accreditation, for example with the Saudi Council of Engineers, before working in their profession.
Best sectors for Indian companies
| Sector | Why it works | Watch out for |
|---|---|---|
| IT, software and cybersecurity | Digital government, giga projects, cloud | Aramco/SABIC CCC cybersecurity certificates for suppliers |
| Engineering, EPC and contracting | Huge project pipeline | Contractor classification and vendor pre-qualification |
| Healthcare and pharma | Hospital expansion, privatization | SFDA product registration and healthcare licences |
| Food, FMCG and trading | Large consumer market | SFDA registration; capital rules for some trading activities |
| Manpower and workforce services | Projects need skilled staff | Saudization and labour rules |
| Renewables and energy services | Vision 2030 energy targets | Local content requirements |
Common mistakes Indian businesses make
- Sending documents for apostille before confirming exactly which documents and formats are needed.
- Transferring capital before the ODI paperwork is done with the AD bank.
- Choosing activity codes that don’t match the business, which later blocks supplier registration and visas.
- Underestimating the time for the bank account and the general manager’s iqama.
- Hiring before planning Saudization (Nitaqat), which can block new visas.
- Ignoring ZATCA e-invoicing and VAT from the first invoice.
After setup: start winning contracts
A Saudi CR lets you register as a supplier with major buyers:
- Maaden vendor registration fast track: approval in 8–10 days
- Saudi Aramco vendor registration
- SABIC vendor registration
- SEC supplier registration
- Etimad registration for government tenders
How Luba Global Ventures helps Indian companies
We work with Indian founders and companies from the first call to the first contract, with team members in Saudi Arabia and India:
- Activity, structure and ownership check, and a written cost estimate
- A document list for India, plus apostille and Arabic translation coordination
- MISA investment registration, Articles of Association and CR
- Chamber, National Address, Balady, GOSI, Qiwa, Muqeem and ZATCA
- Bank account support, general manager iqama and first visas
- Accounting and VAT set-up, then vendor registration with Ma’aden, Aramco, SABIC, SEC and NEOM
Talk to our team about setting up in Saudi Arabia or see our Saudi company formation service.
Sources
- HCCH – Apostille Convention status table (Saudi Arabia in force 7 December 2022; India 14 July 2005)
- Ministry of External Affairs, India – Apostille services
- Ministry of External Affairs, India – India–Saudi Arabia bilateral brief
- Embassy of India, Riyadh – India–Saudi economic and commercial brief
- U.S. Department of State – 2025 Investment Climate Statement: Saudi Arabia
- MISA – Tax laws and regulations overview
Frequently asked questions
Can an Indian start a business in Saudi Arabia?
Yes. Indian companies and individuals can register with MISA and own up to 100% of a Saudi company in most activities, without a Saudi sponsor. After MISA registration, the company is registered with the Ministry of Commerce to receive its Commercial Registration (CR).
Do Indians need a Saudi sponsor or partner to open a company?
Not for most activities. Under the Investment Law, MISA-registered foreign investors can own the company outright. A local partner is only needed for certain restricted activities.
How long does business setup in Saudi Arabia take for Indians?
Typically 4–12 weeks: about 1–3 weeks to prepare and apostille documents in India, then MISA, CR, government registrations, bank account and the general manager’s iqama in Saudi Arabia.
Do Indian documents need embassy attestation for Saudi Arabia?
In most cases no. Saudi Arabia joined the Hague Apostille Convention in December 2022, so Indian public documents can be apostilled by the MEA instead of going through embassy legalization. Commercial documents are usually notarized first, and they must be translated into Arabic.
What documents does an Indian company need?
Certificate of Incorporation, MoA and AoA (or LLP agreement), a board resolution, the latest audited financial statements, a power of attorney and passport copies, apostilled and translated into Arabic, plus a Saudi office lease.
What RBI rules apply when an Indian company sets up in Saudi Arabia?
The investment is Overseas Direct Investment under India’s Overseas Investment Rules and Regulations, 2022. Indian companies invest through their AD bank with the required ODI reporting, and resident individuals invest within the Liberalised Remittance Scheme, subject to the ODI conditions.
How much does it cost for an Indian to set up a company in Saudi Arabia?
It depends on activity, structure, office and number of visas. Main costs are apostille and translation, MISA and CR fees, Chamber membership, office lease, visas and iqama, and accounting. We give a written estimate before you start.
Is there a double taxation agreement between India and Saudi Arabia?
Yes. The India–Saudi Arabia DTAA limits withholding tax rates on items such as dividends and lets Indian residents claim credit in India for tax paid in Saudi Arabia. Plan with an Indian CA and a Saudi accountant.
What taxes will my Saudi company pay?
20% corporate income tax on profits attributable to Indian (foreign) shareholders, 15% VAT on taxable supplies with registration above SAR 375,000, and withholding tax on certain payments abroad. Saudi or GCC-owned shares pay 2.5% Zakat instead of income tax.
Can I set up the company without travelling to Saudi Arabia?
Much of the process can be done from India with apostilled documents and a power of attorney. The bank account KYC, biometrics and the general manager’s iqama usually need a visit.
Which business is best for Indians in Saudi Arabia?
Strong sectors include IT and cybersecurity, engineering and contracting, healthcare and pharma, food and FMCG, manpower services and renewable energy. Each has its own licences, such as SFDA registration, contractor classification or CCC cybersecurity certificates.
After setup, how can my company get work from Aramco, SABIC or Ma’aden?
Register as a supplier on each organization’s portal with your CR and certificates. With Luba’s fast-track service, Ma’aden approval typically comes within 8–10 days for complete applications.
