Current Legal Framework for Doing Business and Foreign Investments in Syria

Following the regime change at the end of 2024, the Investment Law No. 18 of 2021, which plays a strategic role in Syria’s reconstruction process, and the Presidential Decree No. 114 of 2025 that updates it, continue to be the main legal basis for company incorporation, business development, and foreign direct investments in the Syrian market today. This current legal framework and the steps towards sanctions relief, which we follow closely as Esenyel Partners, aim to encourage the flow of foreign capital into the country and elevate bureaucratic procedures to international standards.

Chapter One: The General Legal Framework for Doing Business in Syria

Law No. 18/2021 regulates the establishment mechanisms of investment projects and Syrian investment incentives. With Decree No. 114, which entered into force in 2025, this structure was partially revised, and processes were centralized by placing the “Syrian Investment Authority (SIA)” under the supervision of the Supreme Investment Council, which is directly affiliated with the Presidency.

The current law introduces comprehensive foreign investor protection against unjust expropriation or asset seizure; it offers investors the guarantee of judicial review and compensation based on market value. All “Investment License” application and permit processes are coordinated through a single authorized office called the “Investor Service Center”.

Chapter Two: Types of Legal Entities

According to Syrian  law, the main types of companies in Syria that foreign investors can establish are as follows:

• Joint Stock Company (JSC): Suitable for large-scale projects and strategic investments. It requires relatively high capital and is managed by a Board of Directors, which can also include independent experts.
• Foreign Company Branch / Representative Office: Investors wishing to open a foreign company branch in Syria can establish a branch, liaison office, or temporary office in accordance with the in accordance with the Law No. 34 of 2008 on Branches, Offices, and Agencies of Foreign Companies, Institutions, and Bodies.
• Limited Liability Company (LLC): This is the most common structure for SMEs. According to the current practices of the Ministry of Economy and Industry for 2026, the minimum capital requirement varies by sector but is generally around 50,000,000 SYP (approximately 4,000 USD) for service projects. There is no requirement to be a Syrian citizen for management, but managers must meet conditions such as residency and full legal capacity. In practice, foreign nationals may be appointed as managers, provided that they satisfy the legal eligibility requirements, which typically include having full legal capacity, not having been convicted of a felony or misdemeanor involving dishonesty or breach of trust, and not being subject to any court order preventing them from managing companies.

Chapter Three: Conditions and Documents Required for Incorporation by a Foreign Legal Entity

The basic conditions for company registration procedures in Syria include the following:

• The duly legalized/notarized articles of association of the company.
• Property records or lease agreements regarding the company headquarters.
• Capital deposit receipts and the special “Investment License” approved by the Investment Authority.
• An official establishment application submitted to the Ministry of Internal Trade or the Syrian Investment Agency.
• Identity/passport documents of the partners, and the international registration documents of the parent company if a foreign branch is being established.

Chapter Four: Taxes and Duties

Foreign legal entities are subject to standard financial obligations; however, the Investment Law is quite generous regarding tax exemptions and incentives in Syria:

• Additional benefits for investments that contribute to local employment or export activities.
• 100% customs exemption for machinery, production lines, and transportation vehicles, provided that they are used in projects in Syria.
• Corporate/income tax reductions or exemptions ranging from 5 to 10 years during the operational period, depending on the strategic importance of the project.

Chapter Five: Limitations on Foreign Ownership

Syria allows 100% foreign-owned company ownership in many sectors. Sensitive areas such as oil, telecommunications, banking, and insurance are subject to the special approval of the Central Bank or relevant ministries and public-private partnership (PPP) rules. Real estate acquisition in Syria, on the other hand, is freely permitted for foreign investors within the scope of the investment license, limited solely to the needs of the project.

Chapter Six: Financial Transactions and Transfers

The relaxation of international sanctions has been a historic turning point in the processes of profit and capital transfers. The right of foreign investors to transfer their profits abroad in foreign currency after fulfilling local tax obligations is under legal guarantee. Foreign companies can easily open bank accounts in Syria. However, attention should be paid to practical procedures such as proving that the funds were earned within the scope of the approved project in Syria and submitting documents showing that there are no tax liabilities.

Chapter Seven: Regulatory Environment and Sectoral Investment Opportunities

• Real Estate and Urbanization: This is the sector that benefits the most from investment incentives following Decree No. 114.
• Industry, Agriculture, and Tourism: Compliance with the technical and environmental standards of the relevant ministries is strictly required.
• Infrastructure, Energy, and Telecommunications: Carried out in the form of public-private partnerships (PPP) approved by the Supreme Investment Council.

Conclusion and Contact

With the updated Investment Law and Decree No. 114, Syria has established a transparent system that encourages foreign investment through tax incentives, 100% ownership rights, strong judicial protection, and the opening of international banking channels.

However, the country’s transition period, rapid changes in the local bureaucracy, and sectoral regulations continue to be factors that directly affect investment decisions. At this point, getting expert legal support in the field is of vital importance to minimize risks, legally secure opportunities, and benefit from the right incentives.

As Esenyel Partners law firm, we provide legal consultancy services at international standards to our clients in the processes of company establishment, branch opening, obtaining investment licenses, detailed market research (due diligence), and compliance with local legislation in the Syrian market.

To legally secure your investment plans in Syria, turn risks into opportunities, and manage your processes with a professional team, you can contact Esenyel Partners.