🇸🇦 Saudi Arabia vs 🇮🇳 India
A side-by-side look at setting up a company in Saudi Arabia (LLC (MISA licence)) and India (Private Limited Company), plus 3 regulatory differences to plan for if you operate in both.
| Criterion | Saudi Arabia | India |
|---|---|---|
| Typical vehicle | LLC (MISA licence) | Private Limited Company |
| Foreign ownership | 100% in most sectors | 100% under automatic route (most sectors) |
| Minimum capital | SAR 500,000 typical | No statutory minimum |
| Time to incorporate | 30–60 days | 15–30 days |
| Corporate tax | 20% + Zakat on Saudi share | 22% (15% new manufacturing) |
| VAT / GST | 15% | 18% GST |
| Dividend withholding | 5% | 20% (treaty relief) |
| Resident director | Not required | Required |
| Physical office | Required | Required |
| Annual running cost | USD 15,000–40,000 | USD 2,500–8,000 |
| Audit | Mandatory | Mandatory |
| Legal system | Sharia-based civil system | Common law |
| Currency controls | None | FEMA restrictions apply |
Operating in both: key conflicts
Economic substance: Substance requirements apply on one side only
Directors, decision-making and core income-generating activity must be demonstrably located in the jurisdiction that imposes the substance test. Shared board meetings held elsewhere will fail the test.
Treasury: Capital movement restrictions on one side
Repatriation of dividends, loans and intercompany balances is regulated in one jurisdiction. Cash pooling across the group will require prior approval or will be blocked.
Governance: Resident director requirements differ
One jurisdiction requires a resident director. Appointing the same individual in both can undermine the substance position of the other entity.
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Figures are indicative and change often. Not legal or tax advice — confirm with qualified counsel.