How to Establish Companies in Syria and What Are the kinds

Legislative Decree No. 151

The Law of Companies and trading stores established
outside the Syrian Arab Republic which have branches
of agency in Syria

CHPTER ONE

THE COMPANIES
ESTABLISHED OUTSIDE THE SYRIAN ARAB REPUBLIC

Section One

About the companies established outside the Syrian Arab
Republic

Article 1 –

The companies included in this Law are the companies
established outside the Syrian Arab Republic, of various kinds,
whether they are associations of capitals, or companies of
individuals, or cooperative or alike, which have a branch or an
agency in Syria.

Chapter Two

The branches of the Companies that are established
outside the Syrian Arab Republic

Article 2 –

The companies stated in Article one are not permitted to
establish a branch in Syria to be operated under its
own commercial name and accounts, nor to commence the works of
such a branch unless it is registered in special register kept by
Ministry of Economy and Foreign Trade ( Companies Dept.
).

As for the foreign governmental projects or the
companies in which foreign government is partner or shareholder
in that company, which desires to establish a branch in Syria or
to commence its works in that branch, then it shall be registered
at the Department stated above before it practices business.
After presenting the documents stipulated for in this Law, it
shall be granted a special license to be issued by the President
of the Republic under a proposal by minister of economy and
foreign trade. If the request for license is rejected, the
company shall not take any further method of review.

Article 3 –

1- The company or its manager shall present
the registration request to the Ministry of Economy,
stating the name of the company, place of establishment, its
headquarters, kind, purpose of company, its capital, the location
of its branch in Syria and the sub-branches related thereto if
any, and kind of practices.

2- Ministry of Economy shall have the right
to request additional data in the registration
request.

3- The request shall be attached to the
following :

a. Copy of the company establishment
contract, its bylaw signed by the its chairman of the board or by
whom he may delegate, if the company is one of the associations
of capital, or copy of the company contract signed by the
managers of the company delegating them if it is a company of
individuals, provided that the documents shall be attested by the
competent authorities.

If the documents is issued by the
Commercial Registrar or equivalent and shall be attested
duly.

b. A document certifying that the company"s capital paid
with its reserve exceeds fifty thousand Syrian Pounds, to be
signed by the signatory and attested by duly, if it is of
association of capital. The amount can be adjusted by means of a
normal decree. Ministry of Economy may disregard this condition
if it makes sure, through its special means, that the net assets
of the company exceeds the stated amount.

c. Copy of the balance sheet of the company for the year
prior to the date of the registration request signed buy its
chairman of the board or his delegate, if it is one of the banks
companies.

d. A power of attorney prepared by the notary public or
the clerk responsible for power of attorney attestation in the
headquarter of company, and attested by the competent
authorities, or prepared before the notary public in Syria. Upon
verifying the capacity of the company signatory empowered, the
company shall assign a general manager in Syria who shall resides
actually in the area of the center of the company and connected
directly to the headquarter

The general manger of the company is provided to be
either natural person of Syrian Nationality, or a commercial firm
established in the Syrian Arab Republic and has a headquarter or
a registered branch in the area of the center of the company in
Syria, provided that all partners or shareholders are of Syrian
Nationality.

Ministry of Economy shall have the right to accept, by
virtue of the approval of the President of the Republic, that the
general manager be natural person having the nationality of the
State in which it was established, or a branch of a company
established in the same state.

When the general manager is a company, then attached to
the request, shall be copy of the establishment
contract, the bylaw and legalized documents appointing the
signatory.

4- every document presented by the company
shall be translated into Arabic by a sworn translator authorized
by Ministry of Economy.

Article 4 –

The general manager, as soon as he is assigned , shall
definitely have the authority of concluding
contracts, signing on any company works related document under
its system, and representation before the governmental
institutions and courts of various levels, either in the capacity
of complainant of defendant, or any other capacity, receiving all
calls notifications and notices addressed to the selected
headquarter of the company in Syria. He shall, also, have the
right to collect, spend, issue vouchers, keep company"s accounts
records special for the transactions it carries out in the Syrian
Arab Republic.

Article 5 –

1- The Companies Department Head shall give the
applicant company or its general manager, within two
months from date of request and documents stipulated
for in the previous Article No. 3, a registration certificate
against payment of a fee of SP. 25.001.