Syria, officially the Syrian Arab Republic, is a country in Western Asia, bordering Lebanon to the southwest, the Mediterranean Sea to the west, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest. Its capital and largest city is Damascus
Bashar al-Assad has been president since 2000 and was preceded by his father Assad, who was in office from 1971 to 2000. Throughout his rule, Syria and the ruling Ba'ath Party have been condemned and criticized for various human rights abuses, including frequent executions of citizens and political prisoners, and massive censorship. Since March 2011, Syria has been embroiled in a multi-sided civil war, with a number of countries in the region and beyond involved militarily or otherwise. As a result, a number of self-proclaimed political entities have emerged on Syrian territory, including the Syrian opposition, Rojava, Tahrir al-Sham, and the Islamic State of Iraq, and the Levant. Syria was ranked last on the Global Peace Index from 2016 to 2018, making it the most violent country in the world due to the war. The conflict has killed more than 570,000 people, caused 7.6 million internally displaced people (July 2015 UNHCR estimate) and over 5 million refugees (July 2017 registered by UNHCR), making population assessment difficult in recent years
The Companies Law provided for in Legislative Decree 29/2011 permits the establishment of certain business entities, the most important of which are joint-stock companies, limited liability companies, and partnerships. It is essential to point out that there are no foreign ownership restrictions to incorporating any one of them. They can be 100% owned by foreign nationals. Companies formed in Syria possess Syrian nationality and can own as much real estate as they desire in the country regardless of the nationalities of their shareholders. Furthermore, a company must be registered in the Commercial Registry of the relevant province in which it is incorporated. The Commercial Registry falls under the authority of the Companies Directorate in the Ministry of Internal Trade and Consumer Protection.
The cost of incorporating a limited liability company (LLC) is less than the amount to incorporate a joint-stock company (JSC). One of the main advantages of incorporating a JSC as opposed to an LLC is that on a sale of shares in a JSC, there is no capital gains tax payable unlike in the sale of shares in an LLC where such a tax exists. While an LLC is a company, it is more akin to a limited liability partnership because the owners of the LLC are considered to be partners. In a JSC, the owners of the company are considered to be shareholders in the traditional sense. The LLC is also more preferred because the relationship that will exist between the owners is that of a partnership where all of their input will be valued and their individual participation is essential. Partners in an LLC can be natural or legal persons, such as other companies.
The minimum share capital requirement for an LLC incorporated by two or more partners is SYP 5,000,000 while for a single-member LLC, the minimum share capital requirement is SYP 10,000,000. Upon incorporation, at least 40% of the share capital of the LLC must be paid up and the balance must be settled within one year thereafter or the LLC risks being struck off the Commercial Registry. The share capital is not a charge but rather belongs to the LLC and can be used immediately to cover its expenses.
When all the documents have been prepared and approved by the security authorities where appropriate, the relevant lawyer will use the PoA to open a bank account for the company, lease an office for the company, register the company with the General Commission for Taxes and Fees, pay the share capital, register the company with the Commercial Registry and carry out other related procedures.
LLCs may be governed by managers or alternatively by a board of directors. The minimum number of managers or directors is one person and their number shall not exceed five persons. Nevertheless, should the number of partners increases to more than 25, the number of managers or directors may also be increased to seven persons. Directors can be of any nationality because they do not require work permits. The director does not have to be resident in Syria but must make sure to fulfill his or her legal responsibilities and duties towards the LLC.
As for the general manager, a work permit will need to be obtained and renewed annually if he or she is a foreign national. The formalities, in this case, maybe complex and lengthy. If the manager is a foreign national, he or she needs to be present in Syria for long periods of time as a requirement of his or her work permit. Under these circumstances, it may be preferable to appoint a Syrian national as a general manager.
As a precondition of incorporating an LLC, the company needs to lease or own an office classified as a real estate unit for commercial purposes. It can be as small as a one-room office. The lease should be maintained for as long as the LLC exists.
At the end of the LLC’s fiscal year, its financial statements must be audited and certified by a chartered accountant registered with the Chartered Accountants Association. The company is obliged to appoint an auditor and to renew his or her appointment on an annual basis. The auditor will submit the audited accounts to the General Commission for Taxes and Fees every year.
While the corporation tax for LLCs is fixed at 22%, it is important to also account for other taxes and fees such as the Local Administration Tax and the Reconstruction Tax. The fixed 22% rate includes all contributions but excludes these two specific taxes. In total, the amount the LLC may pay in taxes reaches approximately 30% of profits per year depending on which license it obtains and under what conditions. It must also be borne in mind that other fees such as customs duties, import tariffs, and so forth may be applicable depending on the nature of the business. However, there are exemptions and benefits that may be availed depending on the type of investment, especially those businesses involved in the industrial sector.
It should be noted that only Syrian companies licensed to offer insurance services have the right to ensure against risks arising out of activities in Syria. Moreover, companies operating in Syria are only permitted to insure their employees with insurance companies licensed in Syria.
What data is expected?
List of registered (limited liability) companies. The submissions in this data category do not need to include detailed financial data such as balance sheets etc. To satisfy this category, the following minimum criteria must be met:
• As the main necessity of Limited Liability Company registration, buying or renting a real state with commercial use is considerable. The size of the office can be as small as a simple room.
• The company has to determine an auditor and renew determination annually.
• Limited Liability Company can be managed by manager or managing board.
• Allowed managing board for LLC is one to seven members.
• The companies` managers can be from every nation. 40% of the company`s capital must be paid just after founding the company and the rest must be paid within a year. Otherwise, canceling the trade register of the company is possible.