LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Registration in Yemen |

Overview of Company Registration in Yemen

Arabian Peninsula country Yemen is of Arabic descent. One of the largest on the Arabian Peninsula is it. The Republic of Yemen is Yemen’s official name. More than 1800 Kilometres make up Yemen’s coastline. Yemen’s political crisis began in 2011 as a result of rising unemployment, corruption, and constitutional issues. As a result, doing business in Yemen is difficult. Everyone is required to abide by stringent laws. Although it’s simple to register a business in Yemen, it’s still vital to follow the local laws there. Yemen is ranked 156th in the world for business ease, according to a World Bank survey.

Overview

Yemen's GDP for 2013 was estimated at USD 61 billion. The largest portion of GDP comes from the services sector. About 60% of the GDP is generated by the services industry. The industrial, agricultural, and petroleum sectors are other areas that support the growth of GDP. In Yemen, the agriculture industry employs the majority of the population. The principal goods that are traded in Yemen are commodities including cereals, vegetables, fruits, pulses, qat, coffee, cotton, dairy products, seafood, animals (sheep, goats, cattle, camels), and poultry.

The production of crude oil, petroleum refining, and food processing make up the bulk of Yemen's industrial sector. In addition, SMEs and small-scale industries support the growth of the economy. In this nation, it is typical to find complexes for building and renovating ships. An investor registering a company in Yemen has the option of developing the business in a city. Aden, Taiz, and Sanaa are a few of these cities. In Yemen, young people make up the majority of the population. Yemen has about 2 million people living there.

The biggest issues in Yemen are political unrest and extremist group threats. Therefore, it would be difficult for an investor who wanted to register a company to run a business in Yemen.

Advantages of Yemeni Company Registration

The following advantages of registering a business in Yemen:
Sector of Services- The largest portion of GDP comes from the services sector. About 60% of the GDP is generated by the services industry. The industrial, agricultural, and petroleum sectors are other areas that support the growth of GDP.
Agricultural industry- In Yemen, the agricultural sector employs the majority of the workforce. The principal goods sold in Yemen are commodities including cereals, vegetables, fruits, pulses, qat, coffee, cotton, dairy products, seafood, animals (sheep, goats, cattle, camels), and poultry.
Industrial Sector- The production of crude oil, petroleum refining, and food processing make up the bulk of Yemen's industrial sector. In addition, SMEs and small-scale industries support the growth of the economy. The main operations that take place in this nation are facilities for building and renovating ships.

Structures of Businesses that may be used to Register Companies in Yemen

The following corporate forms are acceptable for company registration in Yemen:
Partnerships- A partnership is a type of entity that consists of two or more people who have agreed to conduct business operations with the intention of splitting profits and losses. Individuals' liability in a partnership company would be uncapped. Therefore, the partners' personal assets may be sought after by the creditors.
Limited Partnerships- A limited partnership is a type of entity with a set amount of liability restrictions. Here, the partnership corporation is made up of two or more partners. The partners' personal assets are protected since the partners' liability is constrained.
Limited Liability Company- This type of organization is also called an LLC. This kind of corporate structure is frequently used by many investors. This type of corporation is a good choice for an investor looking to register a company in Yemen because it offers a lot of advantages. It has both the advantages of a company and the structure of a partnership. For the creation of a limited liability company, there is no minimal capital need. This type of entity is capable of performing a variety of commercial tasks and services. In Yemen, LLCs are often 100 percent domestically held. For an LLC to operate in Yemen, one local director must be appointed.
Joint Stock Company- An organization that offers shares on a public stock exchange is known as a joint stock company. For this type of company, a certain minimum number of directors and shareholders must be present. Members of the general public would be the company's shareholders. As stated in the Company's Articles, shares may be traded.

Minimum Requirements for Yemeni Company Registration

Since an LLC is the most common type of business structure in Yemen, the criteria listed below outline what it needs to be. The following requirements must be met in order to register a Yemeni LLC:
National- A national must be chosen to lead the business if the applicant want to register a corporation in Yemen. It is required to appoint a Yemeni citizen. An LLC's managing director must be a citizen of Yemen.

Office Room- If the business or LLC has its own space, it ought to be roughly 1000 square feet. If an office space lease is in place, the annual rent must match the capital gain.

Qualifications for directors- The LLC's directors and executive members must be qualified to perform their duties. They must possess enough expertise to guide the business toward its objectives. There must be no legal charges brought against the directors or any important management personnel. They cannot be declared bankrupt.

Employees- Employees that live in Yemen are permitted for an LLC. If they get married, the union needs to be officially recorded.

Yemen's Company Registration Process

The procedure outlined below would include LLC registration in Yemen because LLCs are the most common type of business structure there. In Yemen, LLCs must register by following the steps outlined below:

Permission- Married women must obtain permission from the relevant authority to leave the marital residence, according to Art. 40 of the Personal Status Law No. 20 of 1992. (This would only be applicable to married women). Yemen allows husbands to go and register the business. Permission is needed if a woman wants to register a business. The aforementioned procedure would take around one working day to complete.
Reservation of Name- The applicant for company registration in Yemen must reserve a distinctive name for the business in the next step. The company name must be distinctive, so no other business or person may be using it. Any Yemeni national or local legislation must not be broken by the name. At the Commercial Register, the distinctive name of the business can be reserved and registered. The Ministry of Trade & Industry is in charge of carrying out this procedure in its entirety. The time it would take to finish this process would be roughly one working day, and the registration charge is YER 17,020.
Complete Registration- The candidate must fill out the registration form completely and submit it together with a few supporting papers in the following stage. It would take around a week to complete this process. When registering, the following fee must be paid:
Commercial Name: YER 17,020
Fees for forming a corporation are YER 15,000
YER 30,000 in fees for publishing a firm in an official gazette.
YER 20,000 for publishing a company's information in a trade magazine.
YER 20,000 in fees is charged for publishing a commercial registration.
YER 1,020 is required for a trade registration card.

Become a member of the General Tax Department- The applicant would then need to register with the general taxation division. Given that the applicant would obtain the tax registration ID, this is a necessary condition. It is possible to register for VAT, income tax, and corporate tax with this ID. A working day would be needed to complete this process.
Membership- The applicant must next formally submit an application for membership in the Chamber of Commerce (COC). The cost of applying for membership is YER 18,900, and the entire process takes around one working day.
Commercial Permit- The applicant would need to seek a commercial license from the Municipality after becoming a member. When forming the firm, the promoters must specify the kind of business they conduct. The Municipality would supply the agency permit number. This license must be visible in the company's registered office. The fee of this license is YER 80,000, and obtaining it would take around a week.
Social Security Benefits for Workers- The company must register with Social Security if it employs more than two employees. An employer must contribute to social security each month in the amount of 15% of the employee's pay. 15% is split into 9% paid by the employer and 6% taken from the employee's pay. It would take two days to finish this. The social security agency is the designated organization to carry out the procedure.

Requirements for Yemeni Company Registration

For a corporation to be registered in Yemen, the following requirements must be met:

Tax- Corporate tax is due from a company at a rate of 20%. Yemen once imposed a 35% corporation tax. The business would need to register with the General Taxes Department for this. In Yemen, taxes in different kinds must also be paid, including VAT.
Submit your information to the Chamber of Commerce and Trade registry- While registering with the Chamber of Commerce and Trade Registry, the Company must adhere to compliances.
Obtaining a Social Security Registration- The company must register with Social Security if it employs more than two employees. An employer must contribute to social security each month in the amount of 15% of the employee's pay. 15% is split into 9% paid by the employer and 6% taken from the employee's pay.
Shareholders' Meeting- Annual General Meetings must take place at least once every twelve months.
Board meetings- Board meetings must be held if specified in the company's articles.

Documents Needed

In Yemen, the following papers are necessary for company registration:

Reservation form for names
Application for license
Articles of Association signed and stamped
Notice of Publication
Information about the directors' passports or applicable visas
Details about the registered officer or the leased property.

How to Contact Estabizz for Yemen Company Registration

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FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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Overview Advantages of Yemeni Company Registration Structures of Businesses that may be used to Register Companies in Yemen Minimum Requirements for Yemeni Company Registration Yemen’s Company Registration Process Requirements for Yemeni Company Registration Documents Needed How to Contact Estabizz for Yemen Company Registration FAQs Blog