Business entities in Syria
Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Syria. There are several ways of doing business in Syria, the most common being the setting up of a limited liability company. Foreign entrepreneurs may also opt to set up a joint stock company or a branch office.
The Syria limited liability company (LLC)
- The Syria limited liability company (LLC) requires only 1 director and 1 shareholder of any nationality for incorporation process to be complete. The minimum paid-up capital required is US$2,000 which must be paid-up before the company is incorporated. All incorporation documents must also be translated into Arabic and legalized by the nearest Syrian Consulate;
- All LLCs in Syria must submit annual audited financial statements. For this purpose, they must therefore also appoint a certified auditor. If required, Healy Consultants will assist our Clients with finding the certified auditor required for this purpose.
The Syria joint stock company (JSC)
- To setup a Syria joint stock company, our Clients are required to appoint a minimum of 5 shareholders and 5 directors, who can be of any nationality and may be ordinarily resident outside of Syria;
- The minimum paid-up capital required to complete the incorporation process is US$5,000, of which 40% must be paid-up in cash before registration and the remaining 60% must be paid-up within 3 years from the date of incorporation. A Syrian joint stock company must also offer 45% of its shares to the public through an IPO on the Damascus Securities exchange;
- Like limited liability companies, Syria joint stock corporations are required to submit annual audited financial statements. If required, Healy Consultants will assist our Clients with finding the certified auditor required for this purpose.
The Syria branch office
A foreign company may pursue business in Syria through the establishment of a branch office. The branch will operate in the name of the foreign company and must therefore use the registered name of its parent company. It must also have a registered office in Syria.
Table of comparison between Syria entities
LLC | JSC | Branch Office | |
---|---|---|---|
How long to set the company up? | 6 weeks | 7 weeks | 8 weeks |
How long to open company bank account? | 3 weeks | 4 weeks | 5 weeks |
Legal liability? | Limited | Limited | Unlimited |
Wholly foreign owned? | Yes | Yes | Yes |
Minimum paid - up share capital? | US$2,000 | US$5,000 | US$1 |
File annual tax return? | Yes | Yes | Yes |
Tax registration certificate required? | Yes | Yes | Yes |
Recommended corporate bank account? | Byblos Bank | Bank of Syria and Overseas | Commercial Bank of Syria |
Does our Client need to travel? | No | No | No |
Resident director required? | No | No | No |
Resident shareholder required? | No | No | No |
Minimum directors allowed? | 1 | 5 | 1 |
Minimum shareholders? | 1 | 5 | 1 |
Tax identification code needed? | Yes | Yes | Yes |
Syria resident company secretary required? | No | No | No |
Corporate agent required? | No | No | No |
Corporate shareholders allowed? | Yes | Yes | Yes |
Corporate director(s) allowed? | Yes | Yes | Yes |
Statutory audit required? | Yes | Yes | Yes |
Syria corporate tax rate? | 10% to 28% | 10% to 28% | 10% to 28% |
Annual financial statements required? | Yes | Yes | Yes |
Regulated by? | Ministry of Internal Trade and Consumer Protection | Ministry of Internal Trade and Consumer Protection | Federation of Syrian Chambers of Commerce |
Allowed to issue sales invoices? | Yes | Yes | Yes |
Allowed to sign contracts? | Yes | Yes | Yes |
Allowed to import and export goods? | Yes | Yes | Yes |
Can rent an office space in Syria? | Yes | Yes | Yes |
Can buy Syria property? | No | No | No |
Total Syria business setup costs in yr. 1? | US$30,450 | Contact us | Contact us |
Subsequent annual costs (incl. accounting and tax fee)? | US$12,050 | Contact us | Contact us |
Sample engagement invoice? | View invoice PDF | Contact us | Contact us |