Doing Business in Yemen

Yemen offers several business entity types for local and foreign investors. This guide provides a step-by-step overview of the registration process, costs, and ongoing compliance obligations for businesses operating in Yemen.

Available Business Structures

Limited Liability Company (LLC)

The LLC is the most common business structure for small to medium-sized enterprises in Yemen.

• Minimum Share Capital: No minimum requirement
• Shareholders: Minimum 1, maximum 50
• Directors: Minimum 1
• Liability: Limited to share capital

Joint Stock Company (JSC)

Suitable for larger enterprises and foreign investors.

• Minimum Share Capital: YER 10,000,000
• Shareholders: Minimum 3
• Directors: Minimum 3
• Audit Requirements: Annual audit required

Branch of a Foreign Company

Foreign companies may establish a branch in Yemen.

• Registration: Foreign company registration certificate required
• Local Representative: Must appoint a local representative
• Liability: Branch is not a separate legal entity

Sole Proprietorship

The simplest business structure for individual entrepreneurs.

• Registration: Simple registration with the Ministry of Industry and Trade
• Liability: Unlimited personal liability
• Taxation: Income taxed at personal PIT rates

Registration Procedure

Step 1: Name Reservation

Reserve the company name with the Ministry of Industry and Trade.

Step 2: Company Registration

File the articles of incorporation and required documents with the Companies Registry.

Step 3: Tax Registration

Register with the Tax Authority for a Tax Identification Number.

Step 4: Social Security Registration

Register with the General Authority for Social Insurance.

Step 5: Commercial License

Apply for a commercial license. Licenses are renewed annually.

Costs and Timeline

• Name Reservation: Nominal fee
• Company Registration: Approximately YER 100,000-300,000
• Commercial License: Varies by business type and revenue
• Processing Time: 2-6 weeks for full registration

Ongoing Compliance

• Annual Return: Must be filed with the Companies Registry
• Tax Returns: Annual CIT return due by March 31
• PAYE Returns: Monthly withholding returns
• Social Security Returns: Monthly contribution declarations
• Commercial License Renewal: Annual renewal