Wholly owned subsidiary
100% owned by your Indian company, the most common route.
India
Saudi subsidiary
A Saudi subsidiary for your Indian company, formed while your CFO stays in India
Most Indian groups enter Saudi Arabia through a wholly owned LLC: a separate Saudi company, owned 100% by the Indian parent, with the parent's risk limited to its capital. We form it from India and hand your CA the Saudi documents for the ODI reporting.
- 100% Indian ownership
- Tax treaty planned
- Fixed fee, no hidden costs
The short answerAn Indian company forms a Saudi subsidiary by registering with MISA, signing articles and obtaining a Commercial Registration, while its AD bank handles the ODI: a UIN before remittance, evidence of investment within six months and an Annual Performance Report by 31 December. The subsidiary pays 20% Saudi corporate income tax on its profit.
The corridor
Why Indian groups set up in Saudi Arabia
Indian groups already run about 6,300 registered companies in Saudi Arabia, as joint ventures or wholly owned entities, according to the Embassy of India in Riyadh, which also puts two-way trade at USD 41.07 billion in 2025–26.
USD 41.07 bnIndia–Saudi trade in 2025–26Embassy of India, Riyadh
6,300Indian companies registered in Saudi Arabia as JVs or wholly owned entitiesEmbassy commercial brief
USD 3.21 bnIndian investment in Saudi Arabia (2024)Embassy commercial brief
5%Treaty cap on dividends to IndiaIncome Tax Department
Subsidiary services
What forming a Saudi subsidiary from India includes
A Saudi subsidiary formed from India needs articles that match your group's governance, and board meetings held in Saudi Arabia keep the company from being treated as Indian-resident under POEM. It starts with MISA registration timed to your ODI; groups with co-owners from elsewhere can compare our foreign-owned LLC formation guide.
Joint venture LLC
With a Saudi or third-country partner, shares and control set in the articles.
Articles of association
Drafted with our Saudi legal partner to match your group's governance.
Treaty and POEM planning
Board decisions held in Saudi Arabia, so the company isn't treated as Indian-resident.
Commercial Registration
Trade name, CR, National Address and Chamber records.
Activation
ZATCA, GOSI, Qiwa, bank account and the manager's Iqama.
Tax
How the Saudi subsidiary and its profits are taxed
A Saudi subsidiary of an Indian company pays 20% corporate income tax on its profit. The 2006 India–Saudi treaty then caps Saudi tax on dividends paid to India at 5% and on interest and royalties at 10%.
| Income | Saudi tax | In India |
|---|---|---|
| Subsidiary's profit | 20% corporate income tax | Not taxed in India while retained |
| Dividends to India | 5% withholding, the treaty cap | Taxed in India with credit for Saudi tax |
| Interest and royalties | Treaty cap 10%: royalties fall from 15%, interest stays at 5% | Taxed with credit for Saudi tax |
| Sales in Saudi Arabia | VAT at 15% above SAR 375,000 | Not applicable |
The route
From board resolution to a trading Saudi subsidiary
An Indian parent goes from board resolution to a trading Saudi subsidiary in five steps. The capital moves only after the UIN is issued and the Saudi corporate bank account is open.
- 1IndiaBoard resolution and AD bankThe parent approves the investment and picks one AD bank.
- 2IndiaMEA apostilleThrough the MEA's outsourced agencies, after a chamber stamp for commercial papers.
- 3Saudi ArabiaMISA and the CRFiled under your power of attorney.
- 4IndiaForm FC, UIN and remittanceCapital goes in once the Saudi account is open.
- 5Saudi ArabiaActivationTax numbers, employer files and residency.
Subsidiary questions
Saudi subsidiaries for Indian companies: your questions
Can our Indian company own 100% of the Saudi subsidiary?
An Indian company can own 100% of a Saudi subsidiary in most activities. A short list is closed to foreign investors and some activities carry extra conditions.
Does the investment count toward our ODI limit?
Equity, loans and guarantees to the Saudi subsidiary all count toward the ODI limit of 400% of net worth.
What does India need after the subsidiary is formed?
Evidence of the investment within six months and an Annual Performance Report by 31 December each year, through your AD bank.
Could India treat the Saudi subsidiary as Indian?
If its place of effective management is in India. Hold Saudi board decisions in Saudi Arabia and minute them there.
What tax treaty rates apply?
The 2006 India–Saudi treaty caps tax on dividends at 5% and on interest and royalties at 10% at source. Claiming them needs an Indian tax residency certificate, which your CA applies for with the Income Tax Department.
Can the subsidiary have its own subsidiaries?
Yes, with one limit to plan around: rule 19(3) of the 2022 rules bars more than two layers of subsidiaries where the overseas group also invests back into India. Each step-down company is reported through your AD bank.
Subsidiary or branch for our Saudi contract?
A subsidiary for a long-term Saudi business; a branch of your Indian company for delivering one contract.
Across India
Saudi subsidiaries for groups across India
IT groups in Bengaluru and Hyderabad, engineering companies in Pune and Chennai and trading houses in Mumbai and Ahmedabad use the same Saudi route. We work with your team by video in IST, and our India desk guide sets out the ODI side step by step.
MumbaiODI through your AD bank
Delhi NCRODI through your AD bank
BengaluruODI through your AD bank
HyderabadODI through your AD bank
ChennaiODI through your AD bank
PuneODI through your AD bank
AhmedabadODI through your AD bank
KochiODI through your AD bank
KolkataODI through your AD bank
JaipurODI through your AD bank
ChandigarhODI through your AD bank
NRIs in the GulfInvesting money held abroad
India desk · calls in IST
Plan your Saudi subsidiary in one call
Tell us the Indian entity, the Saudi activity and your AD bank. You get the plan and a fixed fee in writing within one working day.