How To Start A Business In Syria

Syria may not be the first country to come to mind when thinking of starting a business, but things are starting to change. After years of ongoing conflict, the country is now beginning to enter its recovery phase. Just last week, US President Donald Trump lifted the US sanctions on Syria which means they will be able to trade more freely with foreign countries.

In a post-war setting, the need for certain products, services and infrastructure is continuing to grow. This offers a unique opportunity for entrepreneurs especially as the country begins to stabilise.

So if one were to consider starting a business there, what factors need to be considered? What potential is there? Let’s take a look.

 

Why Syria Could Be A Good Place To Start A Business

 

Despite its turbulent past, there are several reasons why Syria could be a good location for new businesses.

The need to rebuild: There is a major need for construction following the conflict that has taken place. More specifically, the construction of buildings, manufacturing and public services.

Abundance of resources: Syria boasts a range of natural resources including agriculture and oil, offering new opportunities in these areas.

Young population: More than half of Syria’s population is under the age of 25, providing a young workforce who are ready to learn new skills.

Good location: The country is a link between Asia, Europe and Africa especially for trading with countries like Turkey, Lebanon and Jordan.

 

Industries With High-Growth Potential

 

Choosing the right industry for your business will be a major deciding factor and Syria has some standout options. Some sectors in particular have seen a surge in new businesses and these industries are being eyed for further investment. 

Food production: Thanks to its fertile land, farming startups have taken off especially those who are able to improve existing irrigation systems and modernise the industry of agriculture.

Construction: Homes, schools, hospitals and roads all need to be rebuilt which is a huge undertaking in itself. As a result, construction companies and those supplying the materials are in great demand.

IT: The digital sector is starting to grow more steadily and there is interest in Internet infrastructure and other It solutions.

Manufacturing: During the conflict, importing was affected so there is a need for clothes and furniture.

Energy: Syria’s electricity grid will require major upgrades in the future especially in terms of solar projects and renewable energy.

 

Navigating Syria’s Tax Regulations

 

Before starting a business in Syria, it’s important to be mindful of the tax system. At the moment, the corporate tax rate ranges between 10% and 28% depending on the type and size of your business. While smaller businesses who have profits under SYP 3 million will pay lower rates, bigger companies are subject to higher brackets.

Value Added Tax (VAT) has yet to be fully implemented but a sales tax between 5% and 10% is applied to specific products and services.

If a business operates under the Investment Law No 18, they may be exempt from tax for up to 7 years. Additionally, customs duty won’t be applied to imported equipment.

 

 

Visa And Residency Requirements For Foreign Entrepreneurs

 

Foreign individuals are able to own and run businesses in Syria, as long as they follow the relevant residency and visa laws.

Business Visa: This is valid for up to 3 months per year with the option to extend. Applicants can apply for this visa at any Syrian embassy.

Residency Permit: Required for those who want to open a business in Syria or stay long-term and is issued by the Ministry of Interior.

Work Permit: This is needed if you plan to hire international staff and will require a sponsorship by a business that is already registered.

 

How To Start A Business In Syria

 

If you are considering starting a business in Syria, here is a step-by-step guide on how to get started for the best chance at success.

 

Select A Legal Entity

 

Choosing a business structure will be the first step, depending on the size of your business. In Syria, there are four options that are commonly used.

Sole proprietorship: Ideal for a single owner but with full liability.

Limited Liability Company: The easiest to manage for small to medium size enterprises (SMEs).

Joint-Stock Company: Suited for bigger companies.

Foreign Company Branch: This is for a branch of an existing international company.

 

Reserve A Business Name

 

Once you have decided on a business name, it can be submitted to the Ministry of Internal Trade and Consumer Protection. Keep in mind that the name should be unique and not be in conflict with existing businesses or political terms.

 

Draft Required Documentation

 

At this stage, you will need to put together your business plan and identification documents for each shareholder. If your business structure is a Limited Liability Company or Joint-Stock Company, Articles of Association will be required.

 

Apply For Registration

 

Once you have all of your documentation, it can be submitted to the Commercial Registry and the registration fee will need to be paid. You will then be issued with your company registration certificate.

 

Should You Start A Business In Syria?

 

Syria may not be the easiest place to launch a business but it holds real potential and meaningful opportunities for the right, adventurous entrepreneur.

The key is to be willing to do your homework and connect with the right people to be able to grow a business while doing your part to contribute to the country’s recovery.

It may be a big decision but for the right person with the rind mindset, Syria might just be the right place for your business.

Good luck!