(not
an official translation-legal text is in arabic)
Law No. (22) for the year 1997 pertaining to Commercial Companies
First: Company forms
A. Commercial companies consist of : Individuals Companies Partnership
Company; Limited-Partnership Company; and Joint Venture company
B. Financial Companies Limited
Company; Stock Company; and Limited-Liability Company
Secondly: Permit procedures and required documentation
1. Partnership and Limited-Partnership companies Establishment contract
signed by the shareholders; Completion of permit procedures and registration with
Companies Department and its declaration
in the commercial register; and No partner is admitted to a partnership company under
the age of 18 years or being non Yemeni national.
2 - Limited companies Shareholders must not
be less than five person; A permit decree by the prime Minister need to be issued
for a Public Stock Company, and only a Minister's
decision is needed for a Closed Stock Company; Permit decision and statute to be published in the
official Gazette on the company's expense; Stock companies that sell 25% or more of its shares
publicly -for two years from registration date- are exempted from stamp duties,
registration fees, real estate fees, loan contracts, and mortgage deed related to
their activities as well as capital tax; Share's face value not to be less than 100 Rials and
not to exceed 1000 Rials;
Shares cash value to be paid in one or several installments but the first not to
be less than 20% of the share value and full value of share should be paid within
four years from the date of foundation' declaration; All company stocks have equal rights and governed by
equal commitments; and Shareholder is not responsible for company's commitments
except within his/her share in its capital.
Third: Company management
Board of Directors membership
not to be less than three and not more than eleven members ; The majority of the Board membership has to be of Yemeni
nationality and residence Yemen; A Board member has to be a shareholder; Government or one of its entities to be represented
in the Board in consistent with its shares but does not participate in other members''
elections; and
It is not permissible to be a Board member and a holder of a public (government)
position. Limited-Liability companies This company consists of
two to twenty-five partners. Permit The Preliminary Contract, Articles of Association,
and the Capital Document; Minister to issue permit decision; and Capital is divided
into shares each not be less than five thousand Rials. Management The company is
run by one or more managers but less than seven (Managers' Council