07 January

Cancellation of the Decision to Increase Fees and Minimum Capital for Companies in Syria

The competent ministry in Syria has officially announced the cancellation of the previous decision that aimed to increase registration fees and the minimum required capital for company formation, only a short time after it was issued.
This step reflects a reassessment of the decision’s potential impact on the business environment and overall investment activity.

The cancellation comes in response to concerns raised by entrepreneurs and business owners, particularly regarding the burden the decision would have placed on small and medium-sized enterprises (SMEs).

What Was the Cancelled Decision?

The cancelled decision had included the following measures:

• Increasing the minimum capital for Limited Liability Companies (LLC)
  from 50 million SYP to 250 million SYP
• Increasing the minimum capital for Holding Companies
  from 1 billion SYP to 2 billion SYP
• Raising several company incorporation and registration fees

These measures sparked wide debate about their effect on the cost of establishing companies and market entry.

What Does the Cancellation Mean in Practice?

With the cancellation of the decision:

• The previous minimum capital requirements are reinstated
• The proposed fee increases are suspended
• Company formation procedures regain their former flexibility

As a result, the immediate financial burden on newly established companies—especially startups—is significantly reduced.

Why Was the Decision Reversed?

The cancellation can be understood through several regulatory and economic considerations, most notably:

• Avoiding additional pressure on startups and small businesses
• Encouraging company formation rather than restricting it
• Maintaining economic momentum and investment activity
• Striking a balance between regulation and flexibility

This reversal reflects a policy shift toward supporting business activity instead of limiting it through high financial thresholds.

Impact on Entrepreneurs and Investors

Positive Impacts:

• Lower company formation costs
• Easier market entry
• Stronger encouragement for individual initiatives and SMEs
• Greater clarity in financial planning at the incorporation stage

Points to Keep in Mind:

• Ongoing legislative changes require continuous monitoring
• Future regulatory amendments remain possible
• Choosing the appropriate legal structure from the outset remains essential

Does the Cancellation Mean Less Regulation?

Cancelling the decision does not imply a retreat from market regulation.
 Rather, it indicates a recalibration of regulatory tools to ensure a better balance between:

• Institutional seriousness and compliance
• Supporting entrepreneurship and economic activity

It is likely that future regulatory measures will focus on alternative mechanisms that achieve oversight without imposing excessive capital requirements.

The cancellation of the decision to increase fees and minimum capital requirements for companies in Syria demonstrates regulatory flexibility and responsiveness to economic realities. It reopens opportunities for a broader segment of entrepreneurs to establish companies without additional financial constraints.

Nevertheless, the key challenge remains the ability to stay informed about legal developments and make incorporation decisions based on an accurate understanding of the current regulatory framework.