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Organizational Questions
Topic Feature Remarks
Commercial Register All businesses, regardless of their legal form, must be registered in the Commercial Register under the Ministry of Industry and Trade.
Trade Register Notification Businesses may need to notify the Chamber of Commerce and Industry upon registration.
Bank Account To open a bank account, individuals or companies must provide a valid passport (for foreigners) or national ID, proof of residence, and company registration documents.
Transfer of Goods and Machinery Goods and machinery can be imported and moved freely within Yemen, subject to customs regulations.
Transfer of Capital Capital can be transferred in and out of Yemen, but some restrictions may apply depending on financial and regulatory conditions.
Visa and Residence Permit Foreign investors and business owners may apply for business visas or residence permits through the immigration department.
Employment
Required for obtaining a business license and operating legally. Renewal is mandatory periodically.
Chamber membership is often required, and certain business activities may require additional licenses or approvals.
Banks may require additional documents to comply with anti-money laundering regulations, especially for deposits exceeding a specific threshold.
Some industries and zones may benefit from exemptions or reduced tariffs. Customs regulations and inspections apply.
The Central Bank of Yemen imposes regulations on foreign exchange and capital movement, especially in times of financial instability.
A business visa is usually valid for a few months, after which a residence permit is required for long-term stays. Work permits are also needed for foreign employees.
Topic Feature Remarks
Work permit Any non-Yemeni worker legally residing in Yemen must obtain a work permit to be employed by a company or organization. This requires submitting a request along with necessary documents to the Ministry of Social Affairs and Labor.
Labor Law
Work permits are typically issued for a specific period and must be renewed. Employers are responsible for ensuring compliance with labor laws regarding foreign workers.
Yemeni labor laws provide essential protections for workers, including rights related to working hours, wages, employment contracts, and termination procedures. The law also outlines employer responsibilities and conditions for dismissal.
Social Security System The social security scheme in Yemen aimed at protecting individuals socially and economically in which the Yemeni law defines its advantages and sources of funding. The government establishes institutions under this scheme to provide these benefits in the event of a social hazard, such as old age, disability, death, occupational injury, unemployment, etc. These benefits are financed from contributions paid by the employee and employers which are totaled to 15% out of which 9% is the employer contribution.
Businesses employing more than five individuals are mandated to register with the social security system and make the necessary contributions. Foreign employees are subject to the same contribution rates. However, they may have the option to withdraw the total contributions made by both the employee and employer to the GCSS upon termination of employment in Yemen, subject to a 20% service charge
This guide has been prepared by My Audit, an independent member of Antea MY AUDIT
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