Starting a Business in the Republic of Yemen

This section identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm in the Republic of Yemen.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table below provides a summary of the procedures and the associated completion time and cost for setting up a standardized company. The table is followed by additional country-specific information on business registration requirements.

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Standardized company

Legal Form: Limited Liability Company
City: Sanaa

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Pick up the specimen application from the Commercial Register 1 day nominal
2 Name reservation, license application, AOA signiture, publication and registration at the Ministry of Trade & Industry 3-7 days YER 80570
3 Register as taxpayer with the General Taxes Department for the payment of income tax, obtain taxation card, and register the employees and register for other taxes 1-2 days no charge
4 Apply for Chamber of Commerce membership 1-2 days USD 76
5 Apply to the municipality to obtain license 2-3 days YER 80000
6 Register employees for the social security 2 days no charge

Registration Requirements Details

Procedure 1.
Pick up the specimen application from the Commercial Register
Time to complete:
1 day
Cost to complete:
nominal
Name of Agency:
Comment:
Procedure 2.
Name reservation, license application, AOA signiture, publication and registration at the Ministry of Trade & Industry
Time to complete:
3-7 days
Cost to complete:
YER 80570
Name of Agency:
Comment:
The fees associated with this procedure are: Publication of decree YER 12550, incorporation fees YER 10,000, Publication of company YER 30,000, Name registration YER 18020, Publication of name YER 9600. A 5-day time limit at the OSS is in place as per decree No. 216 of 2008. In the event the Ministry delayed the registration process more then 7 days, by law the company is considered registered.
Procedure 3.
Register as taxpayer with the General Taxes Department for the payment of income tax, obtain taxation card, and register the employees and register for other taxes
Time to complete:
1-2 days
Cost to complete:
no charge
Name of Agency:
Comment:
Procedure 4.
Apply for Chamber of Commerce membership
Time to complete:
1-2 days
Cost to complete:
USD 76
Name of Agency:
Comment:
Procedure 5.
Apply to the municipality to obtain license
Time to complete:
2-3 days
Cost to complete:
YER 80000
Name of Agency:
Comment:
Founders must indicate the type of business at the time of application. The permit number must be displayed in the office. The cost includes fees for the City of Sanaa Trust Office.
Procedure 6.
Register employees for the social security
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Comment:
The firm must register all its workers with the Ministry of Social Security if it employs more than two employees. This requirement is implemented strictly. The firm must send a full list of employees in a prescribed form that includes their salaries. Each month, the employer must deposit 15% of employee salary in the Social Security Fund. Of this, 9% of the salary is contributed by the employer and 6% is deducted from the employee’s salary.