Entering Saudi Arabia from India.
The parts of the route that depend on your company being from India: the documents, and the tax between the two countries. Everything else is the same for every foreign company, and set out below.
Your parent company’s documents
India has been a party to the Apostille Convention since 2005. Commercial documents are first authenticated by a chamber of commerce; the Ministry of External Affairs then issues the apostille, through its collection agents or the e-Sanad portal.
- Notarise private documents (resolutions, powers of attorney).
- Apostille each document.
- Translate everything into Arabic in the Kingdom, through a certified office, stamps included.
MISA’s guide still asks for the parent’s registration and financial statements certified by the Saudi Embassy, while the central bank has told banks the apostille replaces it. We confirm the route with MISA before the first document moves.
Tax between India and Saudi Arabia
India and Saudi Arabia have a comprehensive tax treaty, signed on 25 January 2006 and in force since 1 November 2006. It caps Saudi withholding on payments to an Indian parent:
| Payment to the parent | Treaty maximum |
|---|---|
| Dividends | 5% |
| Interest | 10% |
| Royalties | 10% |
The treaty has no separate article on technical service fees; whether they escape Saudi withholding depends on how ZATCA applies the business-profits article, which we confirm case by case.
Without a claim, Saudi domestic rates apply: management fees 20%, royalties 15%, technical and consulting services 5%, dividends and branch remittances 5%, interest 5%, other services 15% (Income Tax Regulations, Art. 63).
Relief is claimed from ZATCA on Form Q7B, certified by your own tax authority.
Inside the Kingdom the entity pays 20% income tax on its profit (zakat instead on any Saudi or GCC share), and VAT at 15% once taxable supplies pass SAR 375,000.
What is the same for every foreign company
- Investment registration with MISA, decided within 10 working days of a complete file; there is no longer a licence to renew, only an annual update.
- A limited liability company has no statutory minimum capital; MISA sets floors for some activities, trading above all.
- Saudisation is set profession by profession, and new visas need at least a Medium Green band.
- The general manager’s residence permit sits on the critical path: the bank wants it within 90 days of opening the account.
- The commercial registration is confirmed every year; 90 days late suspends it and every licence on it.
The details are in the references: entity forms, government fees and questions.
See it for your company.
The readiness check applies these rules to your country, activity and plans, and names the longest pole in your file. No email.
Sources: hcch.net Apostille status table · the issuing authorities’ own pages · zatca.gov.sa Income Tax Regulations Art. 63 and treaty list · incometaxindia.gov.in · gov.uk · chinatax.gov.cn · impots.gouv.fr · bundesfinanzministerium.de · home.treasury.gov