Company setup in Saudi Arabia for Indian investors
Investor registration under the 2025 Investment Law, commercial registration, and tax, Zakat and Saudization planned before you sign your first contract.
Saudi Arabia's market size and project pipeline make it a natural next step for Indian contractors, distributors and service firms. The framework changed materially in 2025: the new Investment Law replaced the old foreign investment licence with registration with the Ministry of Investment, and the new Commercial Register Law replaced CR renewals with an annual confirmation.
Key facts at a glance
| Entry route | Registration with the Ministry of Investment (MISA) in the National Investor Register under the Investment Law in force since February 2025, followed by commercial registration and any sector licences |
| Company types | Limited liability company (a single shareholder is allowed under the Companies Law in force since 19 January 2023), joint stock company, or branch |
| Foreign ownership | 100% is possible in most sectors; activities on the excluded list need prior approval |
| Income tax & Zakat | Corporate income tax of 20% on the share of profits attributable to non-Saudi, non-GCC owners; Zakat of 2.5% on the Saudi/GCC share of the Zakat base |
| Withholding tax | 5% on dividends paid to non-residents (the India–Saudi treaty rate on dividends is also 5%) |
| VAT | 15%; registration is mandatory above SAR 375,000 and voluntary above SAR 187,500; e-invoicing (FATOORA) applies |
| Commercial register | The CR no longer expires but must be confirmed every year under the Commercial Register Law effective 3 April 2025 |
| Workforce | Saudization quotas under the Nitaqat programme apply to private-sector employers |
| India link | India–Saudi Arabia DTAA, signed 25 January 2006 and in force since 1 November 2006 |
Best suited for
- Contracting, engineering and project services
- Distribution and trading into the Saudi market
- Companies bidding for government work (Regional Headquarters rules)
- Manufacturing and industrial investment
What we handle
- Activity screening against the excluded list and minimum-capital rules
- Investor registration, CR, articles and municipal licences
- Tax and Zakat registration, VAT and e-invoicing readiness
- Nitaqat and visa planning for your first hires
- ODI filing in India, the APR and Schedule FA
The Indian side
Since 1 January 2024, government entities have generally been restricted from contracting with foreign companies whose regional headquarters is outside the Kingdom, subject to an exemption mechanism. If government work is part of your plan, the Regional Headquarters programme — which carries a 0% corporate income tax incentive on qualifying income for 30 years — should be considered at the outset. From India, the Saudi company is an overseas direct investment: the ODI conditions, Form FC reporting and the 31 December APR apply. See ODI & FEMA compliance.
Sources: Investment Law, Royal Decree No. M/19 of 16/1/1446H and its Implementing Regulations (2025); Companies Law, Royal Decree No. M/132 of 1/12/1443H; Commercial Register Law, Royal Decree No. M/83 of 19/3/1446H; ZATCA guidance on income tax, Zakat, withholding tax, VAT and FATOORA; India–Saudi Arabia DTAA (signed 25 January 2006).
Ready to set up in Saudi Arabia?
We aim to reply within one business day with initial observations and next steps.