UAE-Syrian families looking to establish a family business in Damascus have unique legal structuring options. Syrian law recognizes several family business structures combining liability protection with family governance. This guide covers legal frameworks, tax implications, and succession planning for family businesses.
Table of Contents
Family LLC
Most flexible. 2-25 shareholders. Can be family members only. Full foreign ownership allowed.
Holding Company
Own multiple operating companies under one family-controlled entity. Capital: SYP 25M.
Partnership
Simpler for smaller families. Unlimited liability for general partners.
Family Business Structures
| Structure | Min Members | Liability | Capital | Best For |
|---|---|---|---|---|
| Family LLC | 2 | Limited | SYP 5M | Trading, services |
| Holding Company | 2 | Limited | SYP 25M | Multiple businesses |
| Partnership | 2 | Unlimited | No min | Small family firms |
| Joint Stock Co. | 5 | Limited | SYP 50M | Large operations |
| Single Person LLC | 1 | Limited | SYP 10M | Individual founders |
Corporate Governance
Family businesses should establish: (1) family charter defining ownership and management rules, (2) board with independent members for larger firms, (3) clear dividend policies, (4) dispute resolution mechanisms keeping conflicts out of court.
Tax Considerations
28% corporate tax on profits. Holding companies benefit from dividend exemption with 25%+ subsidiary ownership for 2+ years. Industrial zone businesses get 7-year tax holidays. No estate tax in Syria.
⚠️ Important: Sharia inheritance rules apply to Muslim families unless waived by all heirs in writing. Non-Muslim families can opt out through MOA provisions.
Succession Planning
MOA Provisions
Include succession clauses specifying share transfer upon death. Avoids automatic Sharia distribution.
Family Agreement
Draft agreement covering share transfer restrictions, valuation, buy-sell, and management succession.
Legal Will
Have wills in both UAE and Syria. Syria recognizes foreign wills for movable property.
✅ Tip: Register in family members’ names first, then transfer shares to a holding company for centralized control and tax efficiency.
ℹ️ Note: The Syrian Family Business Council offers mentorship and networking for registered family enterprises with 3+ years operation.
Frequently Asked Questions
Can UAE-resident Syrians own 100%?
Yes. Law No. 18 allows full foreign ownership. Family business can be entirely owned by UAE-resident Syrians.
What happens on a member’s death?
Depends on MOA and succession plan. Without planning, Sharia inheritance applies. With planning, shares transfer to designated members.
Special visas for family business owners?
Syria offers investor visa for owners investing SYP 50M+. Two-year multiple-entry business visa available.
Resources
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Samer Jamal (سامر جمال)
Business Consultant. Over 10 years advising UAE companies on Syrian market entry, business formation, and operations.
