legal basis for shareholding companies is the Syrian Commercial Law
as contained in Legislative Decree No 149 of 1949.
companies have become more common in recent years. Since the late
1980’s a number of joint ventures between the
government and private sector have been established as shareholding
companies. It has been particularly common form of incorporation for
entities established under Investment Law No 10.
should occur within one month of the establishment of the business
and a license to operate must be obtained from the Ministry of
Industry. Companies should have five founders and a minimum capital
of 50.000 Syrian pounds.
should be made to the Ministry of Supply and Interior Trade. A
memorandum of association must be submitted: On receiving approval
to incorporate from the Ministry of Supply and Interior Trade, the
company’s articles of association are published the Official
founded by foreigners, or with foreign participation, require
permission from the Ministry of the Economy and Foreign Trade.
Public share offers must be announced in at least two national
are carried out through local and foreign banks authorized by the
Commercial Bank of Syria. Founders are given 60 days to raise 75% of
the total capital offered. If subscriptions do not reach this target
then an additional 60 days may be
given by ministerial decree. Subscribers must pay a minimum of 5% of
the total value of the shares in advance. The balance is paid
according to the memorandum of association.
of 10% of annual profits must be set aside. They may cease when the
reserves reach 50% of the company’s total share capital.
reserves of no more than 25% of annual profits up to a 100% of the
value of the share capital may also be set aside.
management or board of directors of a shareholding company is
elected by the annual general meeting. The number of directors (no
more than seven, no less than three), their tenure and procedures
for elections and dismissal, are to be specified in the articles of
association. Within a week of election the board must elect a
chairman and deputy. Any limits to the board’s authority are to be
laid down in the articles of association. The board must meet on a
monthly basis. Public shareholding companies must have at least two
company employees on the board. In companies with state
participation, public sector representative obtain seats on the
board in proportion to the state’s holding of share