(Not official translation - legal
text is in Arabic)
Law No. (23) for the year 1997 pertaining to
Agencies, Foreign Houses and Companies Branches organization
First: Agencies Organization
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Conditions for agencies establishment are,,
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Agent has to be a Yemeni national;
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A holder of a commercial registration in the
category appropriate to the business nature of the agency;
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Has a registered commercial establishment in
the agency?s location;
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The agency has to be established in accordance
with the Law and the practice of agency business and ,inter-alia, should be one
of its purposes of its Articles of Association; and
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Full capital must be owned by Yemeni subjects.
The permit:
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Permit applications to be submitted to the
specialized department in MOST within sixty days from the date of contract with
the foreign house or company;
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Original contract signed by parties to the
contract and certified by specialized authority or an authentic copy to be attached
to the application;
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Original contract signed by parties to it and
certified by official authority along with an official translation -if issued in
a foreign language- to be attached to the application otherwise a certified true
copy to be submitted instead;
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Contract to clearly contain agent?s name, principal?s
name, address of both, product(s) of agency?s activities, duration of agency, its
nature, dispute settlement mechanism between the two parties, contract?s commitment
settlement, and commission due to permit applicant for agency business;
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Contract should state the principal?s commitment
to provide for technicians, repair workshops, spare parts if an agency is dealing
with electronics, equipment, tools, pumps, or different transportation vehicles;
and agent needs to commit the same to MOST; and
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Permit is granted by the specialized department
to the agency that fulfills the aforementioned conditions and is registered in the
special commercial agencies? register.
Second: Company branches and Foreign houses
Permissible fields of business in ROY are:
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Banking business;
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Technical and consultation services;
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Private constructions and roads, seaports,
airports, general constructions, and housing complexes erection;
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Tourism and hotel activities;
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Investment in industrial activities;
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Investment in oil and mineral resources fields;
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Investment in agricultural, animal, and fishery
activities; and
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Any other fields approved by the Ministerial
Council based on the minister?s suggestion.
The permit:
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To obtain a permit for business operations,
the following documents need to be presented:
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Copy of the Company?s Contract, Articles of
Association, and Commercial Registration;
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Certificate from company?s principal office
commercial registration proving that its capital is not less than stated in the
Banks Law for banks or the Investment Law for other foreign houses and companies;
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Copy of the company?s last budget for the immediate
preceding financial year of the application date;
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An official deputizing letter issued by the
company?s principal office, certified by the specialized authority, and containing
the nomination of the representative or the appointed branch manager who should
reside in the location of the branch and directly connected with the company?s principal
office;
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The company?s representative or manager to
be authorized to sign contracts related to the business practiced by the branch;
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All aforementioned documents to be translated
and certified by the specialized authorities in the country of origin; and
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Permit is granted after legal procedures are
completed and the permit decree to be published in the official Gazette -within
thirty days- on the branch?s expenses; and
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Permit to be declared in the commercial register
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