The Syrian Ministry of Economy and Foreign Trade has significantly increased the minimum capital requirements for establishing new companies, a move aimed at enhancing transparency and reshaping the private sector’s business environment. The new regulations, detailed in Decision No. 70, set higher financial thresholds for various types of corporate entities looking to enter the Syrian market.
A New Financial Threshold for Businesses
Under the new decision, the minimum capital for partnership companies, including general and limited partnerships, is now set at one million new Syrian pounds (SYP). The requirement for limited liability companies (LLCs) has been raised to 2.5 million SYP, while public joint-stock and holding companies now face a minimum capital of 20 million SYP.
In addition to the capital hikes, the decision introduces a tiered fee structure for authenticating articles of association, studying corporate amendments, and issuing official copies of commercial registry documents. This reflects a broader governmental push towards greater administrative and financial regulation of the private sector.
Expert Analysis A Double-Edged Sword
The move has drawn mixed reactions from economists, with some viewing it as a necessary step toward stability while others warn of its potential to stifle entrepreneurship and small business growth.
Economist Yahya al-Dahir described the decision as a “step to enhance the stability of companies and raise the level of confidence among investors.” However, he stressed that laws alone are insufficient and that the real challenge lies in their practical application.
Al-Dahir told Al-Araby Al-Jadeed that ambiguous interpretations and poor coordination between government bodies could turn legal procedures from a regulatory tool into an “additional burden on the investor.” He believes the solution is to modernize administrative infrastructure and create a unified digital system to reduce the time and costs associated with company formation.
Concerns For Startups and Small Businesses
Conversely, economist Ihab Asmandar highlighted several potential negative consequences, primarily the increased burden on small investors. He argued this could limit the entry of small projects into the market and slow private sector expansion.
“This decision could lead to the concentration of economic activity in the hands of larger companies, thereby reducing competition and increasing risks associated with market imbalance,” Asmandar noted.
He added that the increased fees, while nominal for large corporations, represent a significant barrier for smaller entrepreneurs. This might push some to delay their ventures or operate in the informal economy, undermining the reform’s effectiveness. Asmandar also warned that the higher capital requirements could hinder the ability of youth and entrepreneurs to establish new companies, limiting innovation and economic diversity.
A Surge in Company Registrations
The new regulations come after a year of explosive growth in business registrations. In 2025, individual commercial registrations jumped to 13,598 from 7,421 the previous year. Limited liability companies saw the most significant growth, with 2,678 new firms registered compared to just 497 in 2024, indicating a strong preference for this legal structure among investors.
This surge reflects a real economic opportunity, but experts believe that capitalizing on it requires a more flexible and integrated administrative environment to transform regulatory momentum into a catalyst for sustainable growth and job creation.
About The Syrian Ministry of Economy and Foreign Trade
The Syrian Ministry of Economy and Foreign Trade is the government body responsible for proposing and implementing economic policies in Syria. Its mandate includes regulating domestic and foreign trade, overseeing company registration, attracting investment, and managing international economic relations to support the country’s economic development.
Source: Al-Araby Al-Jadeed
