Yemen is located at the southern tip of the Arabian Peninsula, and it has a large and growing population of over 30 million people. The country has a rich culture and history, and it is home to many beautiful natural landmarks.
Yemen is one of the least expensive countries in the Middle East, and this makes it an attractive destination for entrepreneurs looking to start a business on a budget. The investment environment in Yemen has also been enhancing in recent years, with the government implementing policies to attract foreign investment.
To entice international investors, the government has also created free zones and offered tax incentives. This suggests that starting a business here has the potential to be profitable. To set up and run the business here, though, a few below-mentioned rules and procedures must be followed.
Process of business registration
To register the firm, you must get a commercial registration certificate from the Ministry of Industry and Trade. This certificate is required for all businesses operating in Yemen.
After obtaining a certificate, file the company with the General Authority for Investment and Free Zones (GAFI). This filing is necessary for foreign investors and provides them with several benefits, including tax exemptions and the ability to repatriate their profits. There are a few other steps of firm registration mentioned below.
Obtaining business permit
This license is required for all businesses operating in the country. The obtaining process involves submitting various documents, such as a copy of the company’s articles of association, a copy of the company’s memorandum of association, and a copy of the enterprise’s commercial registration certificate.
Registering with the chamber of commerce
This registration is required for opening a bank account, obtaining a tax identification number, and conducting business in the nation.
Obtaining tax ID
The next step is to obtain a tax identification number from the Tax Authority. This number is required for paying taxes, filing tax returns, and obtaining various permits and licenses. Once the tax identification number is obtained, the enterprise can start paying taxes and fulfilling its tax obligations.
Register with social security
The step is necessary to provide social security benefits to the company’s employees. After the filing is completed, the enterprise can start providing social security benefits to its employees.
Obtain other permits
The conclusive step is to obtain any necessary permits and licenses from various government agencies. This may include permits and licenses for importing and exporting goods, operating in certain industries, and conducting certain activities.
Documents required
Registering a company in the country requires the following main documents.
- The memorandum of association, outlines the company’s objectives, name, and location.
- Articles of association, that detail the internal regulations and governance structure.
- The commercial filing certificate.
- The copy of the tax filing certificate.
- The lease agreement or proof of ownership of the premises where the company will operate.
- The environmental permit for activities that may impact the environment.
- The labor office registration certificate.
- The social security certificate.
- Health insurance filing certificate.
- Finally, the trademark certificate,
It is important to note that all documents must be in Arabic or officially translated into Arabic by a certified translator. By following these requirements, companies can successfully begin their operations.
Time and capital required
Registering a firm in Yemen requires both time and money. The process can take up to 30 days and involves several steps. The cost of registering a company in Yemen varies depending on the type and size of the firm. The filing fee for a limited liability firm is YER 100,000, while the fee for a joint stock firm is YER 500,000. In addition to the registration fee, there are other costs associated with starting a business in Yemen, such as legal fees, office rent, and employee salaries.
Despite the time and money required to register a corporation in Yemen, the government is taking steps to make the process easier and more efficient. In 2019, the government launched an online filing system that allows companies to register and get all necessary licenses and permits in one place. This system has significantly reduced the time and cost of registering a firm in Yemen.
