How to Open a Company in Saudi Arabia from India
Short answer: an Indian company or entrepreneur can own 100% of a Saudi company in most activities. The investment is registered with the Ministry of Investment (MISA), the company is formed through the Saudi Business Center, and the Indian side must follow India's overseas investment rules. Since both countries are in the Apostille Convention, document authentication is simpler than it used to be.
This guide is for Indian companies, founders and family businesses planning a Saudi subsidiary or branch. It covers both sides of the move: what Saudi Arabia requires and what India requires.
1. Pick the structure
- Saudi limited liability company (LLC) owned by the Indian company or by individual investors. The most common route.
- Branch of the Indian company. No separate legal entity; the Indian parent is directly liable.
- Regional headquarters (RHQ) for larger groups managing regional business from Riyadh.
2. Confirm the activity
Most activities are open to 100% foreign ownership with MISA registration. Some are restricted, need a Saudi partner, or need a sector licence first, for example industrial, healthcare or education activities. Check the activity codes before preparing documents.
3. Indian rules: overseas direct investment
An Indian company or resident individual investing in a Saudi company must comply with India's overseas investment framework under the Foreign Exchange Management Act, including the Overseas Investment Rules and Regulations of 2022. In practice this is handled with your authorised dealer bank in India, which reports the investment and the remittance of capital. Plan this alongside the Saudi steps so that capital can be sent when the Saudi bank account opens.
4. Documents and authentication
For a corporate investor, expect to provide:
- Certificate of incorporation and memorandum and articles of association
- Latest audited financial statements
- Board resolution approving the investment and appointing the Saudi manager
- Power of attorney for the person completing procedures in Saudi Arabia
- Passport copies of the authorised signatories and the manager
Saudi Arabia joined the Hague Apostille Convention with effect from 7 December 2022, and India is also a member. Public documents from India can therefore generally be authenticated with an apostille from India's Ministry of External Affairs instead of the older chain of embassy legalisation. Documents then need a certified Arabic translation. Confirm with us what MISA currently accepts for your file before you send anything.
5. Saudi steps in order
- MISA investment registration, with a stated processing time of up to 10 working days once the file is complete
- Trade name and commercial registration through the Saudi Business Center
- Articles of association for the Saudi company
- Chamber of Commerce membership
- ZATCA registration for Zakat, income tax and VAT
- Qiwa, GOSI, Muqeem and Mudad for hiring and payroll
- Municipal licence through Balady
- Corporate bank account and transfer of capital from India
6. Practical points for Indian businesses
- Staff transfers: work visas depend on the company's Saudization (Nitaqat) band, so plan Saudi hires early.
- Tax: Saudi VAT is 15%, and the share of profits attributable to non-GCC foreign shareholders is subject to 20% corporate income tax. India and Saudi Arabia have a double taxation avoidance agreement; ask your tax adviser how it applies to dividends and services.
- Contracts: official documents and contracts are read in Arabic.
- Premises: a Saudi commercial address is needed for the CR and municipal licence in most cases.
Frequently asked questions
Can an individual Indian entrepreneur set up without an Indian company? Yes, depending on the activity and the MISA route; some routes are designed for companies with an existing track record, so we check eligibility first.
Do documents still need Saudi embassy attestation? In most cases an apostille now replaces embassy legalisation for Indian public documents, but some private documents need notarisation first. We confirm the exact requirement for your file.
How long does it take? MISA registration takes up to 10 working days once complete; the full process, including Indian approvals, licences and the bank, usually takes weeks to a few months.
How Arabian Horizon helps
Our Jeddah team works with Indian investors from the first eligibility check to an operating company: MISA registration, company formation, certified translation, PRO and GRO services, visas and ZATCA compliance. See also our business setup in Jeddah and business setup in Riyadh pages and the MISA licensing guide.
By the Arabian Horizon team. Requirements change; we confirm the current rules for your case before you apply. Official sources: Ministry of Investment, ZATCA, India Ministry of External Affairs.
