This journey assumes
- The Indian parent is a company incorporated in India, not a bank, NBFC or insurer, and no group account is a non-performing asset or under investigation.
- The Saudi entity will provide IT, digital and engineering consultancy services to government entities, giga-project companies and private clients; it will not carry on regulated financial or telecommunications activity.
- The Indian investment is within India's automatic route for overseas direct investment.
- Staff will be a mix of Indian employees sent to Saudi Arabia and locally hired Saudi and expatriate staff.
- Rules are stated as at 19 October 2026; Saudi regulators update guides frequently and the Arabic text of Saudi rules prevails.
If any assumption is wrong for your business, the conclusions change. Ask WONE Global to re-run the analysis with your facts.
Both sides of the border, issue by issue
Each row is one part of the work. The left and right columns show what each country's rules require, so you can see where one side's decision constrains the other.
Moving money out of India and registering the investment in Saudi Arabia
The Indian parent's Saudi company is an overseas direct investment under India's FEMA framework, routed through one designated AD bank with limits and annual reporting. On the Saudi side, every foreign investor must register with the Ministry of Investment (MISA) before investing; registration has replaced the old licensing regime but activity conditions still apply.
- The Saudi entity is an overseas direct investment governed by the RBI Master Direction - Overseas Investment (updated as on 1 April 2026) with the Overseas Investment Rules and Regulations, 2022, and must be in a foreign entity carrying on a bona fide business activity.12
- Total financial commitment to all overseas entities, including equity, loans and performance or bid guarantees given for the Saudi company, must stay within 400% of the parent's net worth on its last audited balance sheet. Bank guarantees for government tenders count, so plan the headroom early.3
- All transactions run through one designated AD bank: Form FC is filed to obtain a UIN on or before the first remittance, and an Annual Performance Report is due by 31 December each year.456
- A foreign investor must register with MISA before engaging in any investment in Saudi Arabia, giving particulars of its owners and ultimate beneficial owner. The Investment Law replaced the previous licensing regime with registration.7
- For a 100% foreign-owned engineering consultancy, MISA's guide requires presence in at least four countries and at least ten years of experience. A professional activity registered with a Saudi partner requires 25% Saudi participation and both partners licensed in the same field.89
- A company that has already won a government contract can use a temporary investment registration tied to that contract instead of a permanent registration; it ends when the contract ends.1011
Choosing the Saudi vehicle and the regional headquarters question
The practical choice is between a permanent Saudi company (usually an LLC), a temporary registration for one contract, and whether the group also needs a licensed regional headquarters. Government contracting is where the RHQ question arises; the incentives and the substance obligations of an RHQ are separate from the operating company that delivers projects.
- A Saudi subsidiary is reported and limited under India's overseas investment rules; its profits reach India only as dividends or through transfer pricing on services the parent provides.51213
- Working through the Indian company itself (for example on a contract-specific registration) keeps Saudi profits inside the Indian company, which may fund its own overseas office for normal business operations, but not use it to make overseas investments.1412
- If key decisions for the Saudi company are in substance taken in India, it risks being treated as Indian tax resident under the place of effective management test.15
- The permanent vehicle is usually a limited liability company. Incorporating through the Saudi Business Center opens the company's file with the Ministry of Human Resources and Social Development and registers it with ZATCA, social insurance and the chamber of commerce.16
- A licensed regional headquarters must start its mandatory activities within six months, three optional activities within a year and employ at least 15 full-time staff within a year, and must meet ZATCA substance conditions such as a physical office, a resident director and board meetings in the Kingdom.1718
- Saudi government entities have been reported since 2024 to limit contracts with foreign companies that have no regional headquarters in the Kingdom, with exceptions. The official text, thresholds and exceptions could not yet be checked; confirm the current position with MISA and the contracting entity before bidding.1719
Tax, zakat and the India-Saudi Arabia treaty
A foreign-owned Saudi company pays 20% income tax on the share of profits attributable to non-Saudi owners, while zakat at 2.5% applies to any Saudi or GCC owners' share; VAT is 15%. Payments to the Indian parent attract Saudi withholding tax, reduced by the India-Saudi Arabia DTAA in force since 2006 (5% dividends, 10% interest, 10% royalties, no fees for technical services article). India taxes the parent on worldwide income.
- From 1 April 2026 the Indian parent is taxed under the Income-tax Act, 2025 on its worldwide income, including Saudi dividends and service fees, with treaty or foreign tax credit relief for Saudi tax.12
- Services, staff secondments and guarantees between the Indian parent and the Saudi company are international transactions that must be at arm's length and documented. India's revised safe harbour rules group software development and IT-enabled services into one IT services category from FY 2026/27.1320
- If Indian engineers deliver Saudi contracts directly for the Indian company for more than 182 days in a twelve-month period on the same or connected projects, the Indian company itself has a Saudi permanent establishment and Saudi tax on the attributable profits.21
- Income tax of 20% applies to the share of profits attributable to non-Saudi owners; zakat at 2.5% applies to the share attributable to Saudi and GCC owners, so a joint venture pays both.22
- Domestic withholding on payments to the Indian parent is 5% on dividends and on technical and consulting services, 15% on royalties and 20% on management fees. The treaty caps dividends at 5% and royalties at 10% and has no fees for technical services article; treaty rates at source need a ZATCA application with an Indian tax residency certificate.232425262728
- VAT is charged at the standard rate of 15%. A licensed RHQ pays 0% on income from eligible activities for 30 years, but project delivery income is not eligible and is taxed at 20%.293031
- Treaty benefits can be denied where a main purpose of setting up an enterprise was to obtain them, and each country keeps its domestic anti-avoidance rules.3233
Bidding for government and giga-project contracts
Government procurement follows the Government Tenders and Procurement Law and runs through the Etimad portal. Bidders need the right registration (permanent or temporary), and the regional headquarters and local content positions must be checked tender by tender; several of these rules could not be source-checked.
- Bid bonds and performance guarantees issued for the Saudi company, or by the Indian parent on its behalf, count towards the Indian parent's overseas financial commitment limit and must be reported through the AD bank.34
- Contract structure decides tax exposure: if the Indian company signs and delivers from India with only short visits, profits are generally taxed in India unless a Saudi permanent establishment arises; long site presence creates one.2127
- Government procurement is governed by the Government Tenders and Procurement Law and runs through the Etimad electronic portal.19
- A foreign company that wins a contract before setting up permanently can register temporarily for that contract, supported by the authority's letter or the contract itself.11
- Regional headquarters requirements and local content preferences in government tenders were not source-checked here; confirm each tender's conditions and whether the contracting body requires an RHQ.1917
Staff, work permits and Saudisation
Every non-Saudi employee needs a work permit sponsored by the Saudi employer, and the employer bears recruitment, permit and residence costs. Localisation (Saudisation) rates are set by the Ministry of Human Resources and Social Development. There is no India-Saudi social security agreement on EPFO's list, so deputed staff need separate analysis on both sides.
- Saudi Arabia does not appear in EPFO's list of countries with which India has social security agreements, so there is no agreement-based exemption from either country's scheme for deputed staff.34
- Salary costs recharged between the Indian parent and the Saudi company for seconded staff are related-party transactions needing arm's length support, and long deputations can create a services permanent establishment for the Indian company.1321
- A non-Saudi may not work without a work permit, which needs legal entry, skills the country needs and a contract with an employer; the employer bears recruitment, residence and work permit fees and the return ticket.3536
- For non-Saudi employees the employer pays social insurance of 2% for occupational hazards only; Saudi employees carry full contributions.37
- Localisation rates are set by the Ministry of Human Resources and Social Development. MISA applies them expressly to 100% foreign-owned trading companies; the rates for engineering and IT services firms under the Nitaqat programme were not source-checked here.38
Bank accounts, currency and repatriation
Saudi Arabia allows investors to transfer funds, profits and sale proceeds abroad without delay, subject to withholding taxes. On the Indian side, the investment and every return flow runs through the designated AD bank, and dues from the Saudi company must be brought back within 90 days.
- The equity remittance and any loan to the Saudi company go through the designated AD bank after the UIN is issued.45
- Dividends and other dues from the Saudi company must be realised and repatriated to India within 90 days of falling due.39
- Under the Investment Law investors may transfer funds within or outside Saudi Arabia without delay, including profits and sale proceeds, in any recognised currency.40
- Dividends paid to the Indian parent bear 5% Saudi withholding, the same as the treaty cap, so the main repatriation cost is the combined Saudi and Indian tax on the profits.2326
Structures to consider
These are the structures businesses commonly weigh, not a recommendation. The right one depends on the facts listed under "What we need from you".
What has to happen first
- IndiaBoard of the Indian parent approves the Saudi project, the investment and guarantee amounts, and the structure; check net-worth headroom including expected bid and performance guarantees.
- Both sidesMap the target tenders: contracting bodies, whether they require an RHQ, local content conditions and expected on-site time of Indian staff.After step 1
- Both sidesChoose the vehicle: permanent LLC, temporary registration for an awarded contract, RHQ in addition, or a joint venture.After step 2
- IndiaDesignate the AD bank in India and file Form FC to obtain the UIN before any remittance or guarantee.After step 1, 3
- Saudi ArabiaPrepare MISA documents (embassy-certified commercial registration and financial statements of the Indian parent, ownership and beneficial owner details) and register with MISA.After step 3
- Saudi ArabiaIncorporate through the Saudi Business Center; registrations with ZATCA, social insurance and the Ministry of Human Resources follow.After step 5
- Both sidesOpen the Saudi bank account and remit share capital through the designated AD bank.After step 4, 6
- Both sidesRegister for VAT and plan e-invoicing; obtain the Indian tax residency certificate for treaty claims and file ZATCA treaty applications for payments to India.After step 6
- Both sidesSet intercompany agreements and a transfer pricing policy for services, secondments and guarantees that works in both countries.After step 3, 7
- Both sidesPlan staffing: work permits, Saudisation targets, social security position of deputed Indian staff and permanent establishment exposure.After step 6
- Saudi ArabiaIf required, apply for the RHQ licence and build its substance (office, resident director, senior staff, board meetings in the Kingdom).After step 3, 6
- Saudi ArabiaRegister on Etimad and bid; track tender-specific conditions.After step 6, 10
- Both sidesOngoing: APR by 31 December, Saudi income tax and zakat returns within 120 days of year end, withholding returns monthly, repatriation of dues within 90 days.After step 12
What we need from you before anyone can advise
- Which government bodies and giga-project companies the company will bid to, and whether they require a regional headquarters or set local content conditions.
- Whether the company meets MISA's conditions for a 100% foreign engineering consultancy (presence in four countries, ten years' experience).
- Expected on-site time of Indian staff per project and in any twelve-month period.
- The Indian parent's net worth and existing overseas commitments, including guarantees.
- Planned headcount, mix of Saudi and expatriate staff, and professions (for Saudisation).
- Whether a Saudi partner will hold shares, and its nationality (for zakat versus income tax).
- How services will be split between work performed in India and in Saudi Arabia, and how they will be priced.
- Group regional plans beyond Saudi Arabia (relevant to the RHQ decision).
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- The rule restricting government contracts with foreign companies that have no regional headquarters in Saudi Arabia, its thresholds and exceptions could not be confirmed on an official page; the State Department investment climate page could not yet be checked and no MISA or Etimad text was opened.
- Nitaqat (Saudisation) bands, rates for engineering and IT professions, and any profession-specific localisation decisions were not source-checked (HRSD and Qiwa pages did not provide the content).
- Local content requirements and price preferences in Saudi government procurement (Local Content and Government Procurement Authority) were not source-checked.
- Saudi Council of Engineers registration and professional accreditation for engineers were not researched.
- Whether an India-Saudi Arabia bilateral investment treaty is in force, and the status of India-GCC free trade negotiations, were not confirmed (search budget exhausted).
- The EPFO list of social security agreements is from a brochure last dated July 2022; any later agreement would need confirming with EPFO.
- How ZATCA characterises specific IT and engineering service payments for withholding and treaty relief, given the treaty has no fees for technical services article, needs adviser confirmation.
- Whether the MLI applies to the India-Saudi Arabia treaty was not checked.
- Indian rules on foreign tax credit and on taxation of foreign dividends under the Income-tax Act, 2025 could not yet be checked on the official site.
Brief for your advisers
Questions to put to your advisers in each country. Copy them, or download them as a text file to send with your requirement.
- Saudi corporate adviser: which MISA registration category fits our activities, do we meet the engineering consultancy conditions, and what documents must be embassy-certified?
- Saudi adviser: do our target contracting bodies currently require a regional headquarters, what are the exceptions, and would an RHQ licence be proportionate for us?
- Saudi tax adviser: how will ZATCA treat our service fees, royalties and management charges paid to India, and how do we apply the India-Saudi Arabia treaty at source?
- Indian tax adviser: will our engineers' time on Saudi projects create a permanent establishment for the Indian company, and how should contracts be split between India and the Saudi entity?
- Both tax advisers: which transfer pricing method and documentation will satisfy both countries for offshore delivery from India, and can India's IT services safe harbour be used?
- AD bank: how will bid bonds and performance guarantees for Saudi tenders be counted and reported under the overseas investment rules?
- Saudi employment adviser: what Saudisation rates apply to our professions and headcount, and what are the work permit steps and costs?
- Indian employment adviser: what social security and tax position applies to Indian staff deputed to Saudi Arabia in the absence of a social security agreement?
Who can help, on each side
India
- Setting up and running a company · Arranged by WONE Global on request
- Payments and currency · Arranged by WONE Global on request
- Licences, permits and regulators · Arranged by WONE Global on request
- Tax and structuring · Led by Sandeep Gupta
- Accounting and annual filings · Led by Sandeep Gupta
- Contracts and commercial law · Arranged by WONE Global on request
- Employment, payroll and immigration · Arranged by WONE Global on request
- Banking and capital · Arranged by WONE Global on request
- Treasury and funding · Arranged by WONE Global on request
Saudi Arabia
- Setting up and running a company · Arranged by WONE Global on request
- Payments and currency · Arranged by WONE Global on request
- Licences, permits and regulators · Arranged by WONE Global on request
- Tax and structuring · Led by Abdullah Yousef Alhussaini
- Accounting and annual filings · Led by Abdullah Yousef Alhussaini
- Contracts and commercial law · Led by Abdulrahim bin Saleh Al-Zahrani
- Employment, payroll and immigration · Arranged by WONE Global on request
- Banking and capital · Arranged by WONE Global on request
- Treasury and funding · Arranged by WONE Global on request
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Overseas investment by Indian residents is governed by the RBI Master Direction - Overseas Investment, read with the Foreign Exchange Management (Overseas Investment) Rules, 2022 and Regulations, 2022. Applies to any person resident in India making overseas direct or portfolio investment, including an Indian company setting up a foreign subsidiary. The Master Direction was issued on 24 July 2024 and its content was updated as on 1 April 2026.
The Rules (G.S.R. 646(E), 22 August 2022) are issued by the Central Government; the RBI-hosted gazette PDF of the Rules returned a bot check and could not yet be checked.
Overseas investment may be made only in a foreign entity engaged in a bona fide business activity, directly or through a step-down subsidiary or special purpose vehicle. The Master Direction does not define bona fide business activity; the definition sits in the OI Rules.
An Indian entity's total financial commitment in all foreign entities taken together must not exceed 400% of its net worth as per its last audited balance sheet, or as directed by the Reserve Bank. Overall automatic-route limit in Schedule I of the OI Rules. Financial commitment includes equity, debt and guarantees given to or on behalf of the foreign entity.
Secondary source. The RBI Master Direction (para 21) refers to the Schedule I limit without stating the percentage, and the official Rules text could not yet be checked.
An Indian investor must designate one authorised dealer (AD) bank and route all transactions relating to an overseas direct investment through it. A unique identification number (UIN) must be obtained through the designated AD bank before the outward remittance or acquisition of equity, whichever is earlier. The bank can be changed after obtaining an NOC from the existing bank.
Form FC, with the required documents, must be submitted to the AD bank to obtain a UIN on or before making the initial overseas direct investment. The UIN is a database number and is not an RBI approval.
An Indian investor with overseas direct investment must submit an Annual Performance Report for each foreign entity by 31 December each year. Not required where the holding is under 10% without control and there is no other financial commitment, or where the foreign entity is under liquidation. The APR must be certified by a chartered accountant where statutory audit does not apply (Master Direction para 17(3)).
A foreign investor must register with the Ministry of Investment before engaging in any investment in Saudi Arabia. Applies to foreign investors generally; investments in securities governed by the Capital Market Law are outside this requirement.
A 100% foreign-owned engineering consultancy must have a presence in at least four countries and at least 10 years of experience. Engineering consulting activity registered with the Ministry of Investment.
Professional activities registered with a Saudi partner require 25% Saudi participation, both partners must be licensed in the same field, and any non-professional partner's share may not exceed 30%. Professional activities (for example engineering and similar licensed professions) registered with the Ministry of Investment.
The Ministry of Investment offers a temporary investment registration for government contracts as a distinct filing category. Foreign companies performing government contracts without a permanent registration.
MISA's temporary investment registration is for foreign companies that have obtained a government contract, requires a letter from the government authority or the project contract covering the contract period, and ends at the end of the contract. The fee for the full registration period must be paid within 30 days of notification or the registration is void; annual updates also apply.
An Indian company is taxed on its worldwide income, with double taxation relieved through tax treaties or unilateral relief and foreign tax credit rules. Applies to dividends and any other income the Indian parent earns from the foreign subsidiary.
Secondary source.
Indian transfer pricing rules require international transactions between associated enterprises to be at arm's length, supported by annual documentation and an accountant's report filed one month before the income tax return. A new accountant's report form applies from tax year 2026-27. A master file is required for groups with consolidated turnover above INR 5 billion (plus transaction thresholds); country-by-country reporting applies above INR 64 billion.
Secondary source.
An Indian entity may remit funds to its own branch or office outside India for normal business operations, but no such remittance may be used for making any overseas investment. Relevant to the choice between a foreign branch and a foreign subsidiary of the Indian parent.
A foreign company is resident in India in a year if its place of effective management (where key management and commercial decisions for the business as a whole are in substance made) is in India. Circulars say the POEM test does not apply to a foreign company with turnover or gross receipts of INR 500 million or less in the year.
Secondary source; the corresponding provision of the Income-tax Act, 2025 could not yet be checked.
On incorporation through the Saudi Business Center, the company's file is opened with the Ministry of Human Resources and Social Development and the company is registered with ZATCA, social insurance, the Saudi Post national address service and the chamber of commerce. Outputs of the Ministry of Commerce LLC incorporation service.
A regional headquarters must start its mandatory activities within six months of its licence, start at least three optional activities within one year, and employ at least 15 full-time employees within one year. Regional headquarters registered with the Ministry of Investment.
Under ZATCA's regional headquarters tax guideline, a regional headquarters must among other substance conditions have a physical office in the Kingdom, hold board meetings physically in the Kingdom, have at least one director resident in the Kingdom, and employ at least three staff at executive director, vice president or director level. Applies to RHQs licensed by MISA claiming the RHQ tax incentives. Guideline second version, May 2026; the Arabic version prevails.
Government procurement is governed by the Government Tenders and Procurement Law, applies to procurement by government entities including procurement executed outside the Kingdom, and runs through the Etimad electronic portal. The Ministry of Finance sets procurement policy and maintains a boycott list.
Secondary (foreign government) source; the official Saudi text could not yet be checked run.
Under India's revised transfer pricing safe harbour rules, software development, IT-enabled services, knowledge process outsourcing and contract R&D for software development are grouped into a single IT services category, available for a block of five consecutive tax years from FY 2026/27. Central tax. Eligibility thresholds and safe harbour margins were not stated on the source page.
Secondary source (page last reviewed 11 May 2026); the CBDT notification could not yet be checked.
Under Article 5 of the India-Saudi Arabia DTAA, the furnishing of services, including consultancy services, by an enterprise through its employees or other personnel creates a permanent establishment where the activities continue for the same or a connected project for more than 182 days within any twelve-month period. A building site, construction, installation or assembly project, or related supervisory activity, is likewise a permanent establishment only where it continues for more than 182 days.
In Saudi Arabia, income tax of 20% applies to the share of net adjusted profits attributable to non-Saudi owners, while zakat at 2.5% applies to the zakat base attributable to Saudi and GCC owners. Mixed-ownership companies pay both on the respective shares.
Secondary source; ZATCA pages not yet checked for this point.
Withholding tax of 5% applies to dividends and to loan charges paid to non-residents. Kingdom-source payments to non-residents; treaty rates may reduce the rate.
Withholding tax of 5% applies to technical and consulting services, rent and international telecommunications, while other payments to non-residents not specifically listed are taxed at 15%. Kingdom-source payments to non-residents.
Withholding tax of 15% applies to royalties and 20% to management fees paid to non-residents. Kingdom-source payments to non-residents; treaty rates may reduce royalty rates.
The Income Tax Department lists India-Saudi Arabia treaty rates of 5% on dividends, 10% on interest and 10% on royalties, with no separate provision for fees for technical services. India-Saudi Arabia DTAA.
The India-Saudi Arabia DTAA caps source-state tax on royalties at 10% of the gross amount and has no separate article on fees for technical services; its protocol only provides for a review after five years to consider adding one. Royalties paid to a beneficial owner resident in the other state. Without a fees for technical services article, service fees are generally dealt with under the business profits article, which allows source taxation only through a permanent establishment.
The business profits treatment of service fees is the general treaty structure (Article 7); how each country characterises a given service payment must be confirmed by advisers.
To apply treaty withholding rates at source, the payer applies to ZATCA through its e-services portal with the non-resident's tax residency certificate, ZATCA's treaty form authenticated by the Saudi embassy or apostilled, and an undertaking to settle any resulting tax; otherwise the domestic rate is withheld and a refund claimed. Payments to residents of countries with a double taxation agreement with Saudi Arabia; treaty claims are subject to a five-year limitation period.
The standard VAT rate is 15%. Taxable supplies in Saudi Arabia; zero-rating applies to certain exports, including services to non-resident customers.
The 1 July 2020 effective date of the increase from 5% to 15% comes from PwC Worldwide Tax Summaries (Corporate - Other taxes).
A licensed regional headquarters pays 0% income tax on income from eligible activities and 0% withholding tax on qualifying payments to non-residents for a renewable period of 30 years from the licence date. RHQ licensed by the Ministry of Investment that meets ZATCA's conditions and economic substance requirements; non-qualifying income is taxed at 20%.
The 16 February 2024 effective date of the RHQ tax rules comes from PwC Worldwide Tax Summaries (Significant developments).
Income of a regional headquarters from activities that are not eligible RHQ activities is taxed under the normal rules, at 20% of the tax base, and does not benefit from the RHQ incentive. ZATCA gives as an example an RHQ distributing products in the Kingdom for an affiliate, which it treats as an ineligible activity; the incentive can also be revoked for misuse.
Article 26 of the India-Saudi Arabia DTAA preserves each country's domestic anti-avoidance provisions and allows treaty benefits to be denied where the main purpose, or one of the main purposes, of creating an enterprise was to obtain benefits not otherwise available. Article 26(3) also addresses entities without bona fide business activities.
The India-Saudi Arabia double taxation avoidance agreement was signed at New Delhi on 25 January 2006 and is listed by India's Income Tax Department as in force from 1 November 2006. Comprehensive income tax treaty between India and Saudi Arabia, notified in India by GSR 645(E) dated 17 October 2006.
EPFO's brochure on international workers lists India's social security agreements with 20 countries (Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, Netherlands, Hungary, Finland, Sweden, Czech Republic, Norway, Austria, Canada, Australia, Japan, Quebec, Portugal and Brazil, the last not yet in force); Saudi Arabia is not among them. The brochure is undated; the latest date in it is 27 July 2022, so agreements concluded after that are not reflected.
Absence of Saudi Arabia from the list was read from the brochure; a later agreement, if any, would need to be confirmed with EPFO.
A non-Saudi may not work in Saudi Arabia without a work permit, which requires legal entry and authorisation to work, skills the country needs, and a contract with an employer. All non-Saudi workers under the Labor Law.
The employer bears the costs of recruiting a foreign worker, residence and work permit fees and their renewal, profession-change and exit and re-entry fees, and the worker's return ticket at the end of the relationship. Employers of non-Saudi workers under the Labor Law.
Social insurance contributions for Saudi employees total 21.5% of salary (9.75% employee, 11.75% employer), while for non-Saudi employees the employer pays 2% for occupational hazards only, on salary capped at SAR 45,000 a month. Contribution base is basic salary plus housing allowance; rates as reported for employees covered before the new Social Insurance Law.
Secondary source. The GOSI website did not render content when opened. The new Social Insurance Law (understood to apply to new Saudi entrants from 3 July 2024 with phased pension contribution increases) is not reflected on the PwC page and was not confirmed on an official page.
For 100% foreign-owned commercial activity, MISA's investor guide requires the company to achieve the localisation rates determined by the Ministry of Human Resources and Social Development. Stated for commercial (trading) activity. The guide does not name the Nitaqat programme and does not set localisation rates for engineering or IT services companies.
All dues receivable from the foreign entity must be realised and repatriated to India within 90 days of falling due. Also applies to sale or disinvestment proceeds (90 days from transfer) and liquidation proceeds (90 days from distribution). The regulation refers to dues generally; dividends declared by the foreign subsidiary are understood to be dues once declared.
Treating declared dividends as dues falling due is our reading; confirm with the AD bank.
Investors may transfer funds within or outside Saudi Arabia without delay, including profits and sale proceeds, in any recognised currency. Investors under the Investment Law; tax withholding on outbound payments still applies.
