Saudi Arabia has emerged as a favorite destination for Indian businesses looking to expand their operations internationally. With its strong economy, strategic location, and business-friendly reforms, the Kingdom offers immense opportunities for growth. However, navigating the legal and tax frameworks is crucial to a successful expansion. In this guide, we will explore the key aspects of obtaining a MISA (Ministry of Investment Saudi Arabia) license and understanding Saudi taxation for foreign businesses.

Why Expand to Saudi Arabia?

MISA Licensing: The Gateway to Saudi Business

MISA is the primary authority that facilitates foreign investment in Saudi Arabia. Indian companies looking to establish a presence must obtain a MISA license, which grants legal authorization to operate in the Kingdom.

Key Updates for 2025

• 100% Foreign Ownership – Indian Private Limited Companies, LLP, and OPC can establish a 100% independent subsidiary in Saudi Arabia.
• Single MISA License for All Activities – As per the New Investment Law 2025, one MISA license is enough to conduct all types of business, including trading, services, and manufacturing.
• Simplified Attestation Process – Indian companies should get their Incorporation Certificate, Memorandum of Association, and Audited Financial Statements attested from MOFA. Saudi Embassy attestation from India is not required, as India and Saudi Arabia have an apostille agreement.
• Financial Fitness Requirement – Indian companies should be financially fit to be eligible for investment.
• Investment Through Subsidiary Only – Indians can invest in regular business only by forming a subsidiary company.

Steps to Obtain a MISA License

1. Determine Business Activity – Ensure that your business activity aligns with the sectors allowed for foreign investment.
2. Company Registration – Register your company with the Saudi Arabian General Investment Authority (SAGIA) under MISA.
3. Legal Documentation – Submit required documents, including the parent company’s registration certificate, financial statements, and an attested board resolution.
4. Commercial Registration (CR) Issuance – Obtain a Commercial Registration certificate from the Ministry of Commerce.
5. Work Visa and Employee Setup – Once licensed, your company can sponsor work visas for employees.
6. Compliance and Approvals – Depending on the sector, additional approvals may be required from industry-specific regulators.

Required Documents for MISA Licensing and Saudi Business Setup

• Incorporation Certificate – Attested by MOFA.
• Memorandum of Association (MOA) – Attested by MOFA.
• Audited Financial Statements – Attested by MOFA.
• Passport Copies – Of company directors and shareholders.

Understanding Saudi Taxation

Saudi Arabia offers an attractive tax environment for foreign investors. However, understanding the tax obligations is essential to ensure compliance and financial efficiency.

Key Tax Considerations for Indian Companies

1. Corporate Tax – Foreign-owned businesses are subject to a corporate tax of 20% on net profits.
2. Zakat – A religious levy applicable to Saudi and GCC-owned businesses at 2.5% of the company’s net worth.
3. Value-Added Tax (VAT) – A standard 15% VAT applies to most goods and services.
4. Withholding Tax – Payments to non-residents for services, royalties, and interest may be subject to withholding tax ranging from 5% to 20%.
5. Customs Duties – Import duties vary based on the type of goods, with exemptions available under specific investment agreements.
6. Double Taxation Agreement (DTA) – India and Saudi Arabia have a tax treaty to prevent double taxation, benefiting companies operating in both countries.

The Corprights Advantage

Expanding your Indian business to Saudi Arabia requires expert guidance to navigate regulatory, financial, and operational challenges. Corprights, with deep roots in India and an office in India, can help sort the Indian company’s documentation, audit, and attestation for you. Our experienced Indian chartered accountants and lawyers will ensure a seamless process, handling all legal and compliance matters efficiently.

Final Thoughts

Saudi Arabia presents a wealth of opportunities for Indian businesses willing to explore new markets. By obtaining the necessary licenses and understanding the tax framework, companies can establish a successful presence in the Kingdom. If you’re considering expansion, partnering with a trusted consulting firm like Corprights can streamline the process and set your business up for long-term success.

Contact Us for Expert Assistance

🚀 Get in touch with us today to explore your Saudi expansion! 📩 Email: jasim@corprights.co
📞 Call: +966 55 894 6033