What are the procedures for establishing a company in Yemen?
A copy of the personal ID card.
Determining the company statute.
Preparing the company’s founding contract.
Company’s registered capital.
Having the statutory authorization for the representative.
The partnership contract.
Registering the company at the Commercial Register and the Public Authority for Civil Information.
What are the fees charged when you establish a company?
- Twenty thousand Yemeni riyals to obtain the company’s incorporation form.
- Fifty thousand Yemeni riyals to examine the application.
Types of Companies in Yemen
Partnerships
Consists of two or more partners, and they share the company’s debts. This type of company is not required to have a minimum capital. The company’s manager may not engage in any similar activity without having the permission from all other partners.
Limited Partnership Firms
Consists of two types of partners:
Joint Partners: who manage this company are responsible for its debts.
Limited Partners: they are not responsible for company’s management duties, but participate with their capital, and are obligated to pay a percentage of the debts of the company, depending on their share. A partner can sell their stake without the approval of all other partners.
Partners are not entitled to do any work towards others. This type of company does not have a minimum capital requirement.
Closed Joint Stock Company
Two or more partners make a contract whereby they conduct their business and share profits and losses. The company does not have a legal personality and is not subject to registration, licensing and publicity procedures.
Partnership Limited by Shares
Consist of at least two joint partners and at least three limited partners. There is no minimum capital required, and it is divided into shares. The partners bear the losses only by the amount of their shares in the company’s capital.
Limited Liability Company
The limited liability company consists of one or more partners, and the number of partners should not exceed thirty partners.
Joint Stock Company
If any shareholder declares bankruptcy, the company as a whole does not declare bankruptcy. It divides its capital into shares of equal value, and each shareholder is responsible according to the amount of his contribution to its capital.