Corporate Law at Yemen
Sure! Here’s an overview of Corporate Law in Yemen:
1. Legal Framework
Corporate law in Yemen is mainly governed by:
The Yemeni Commercial Law (Law No. 22 of 1997) — This law covers commercial companies, partnerships, and related commercial activities.
The Companies Law — regulates the establishment, operation, and dissolution of companies.
Various ministerial decrees and regulations also apply.
2. Types of Companies in Yemen
Yemeni law recognizes several business entities, including:
Limited Liability Company (LLC): The most common form for small and medium businesses. Liability is limited to the amount of capital invested.
Joint Stock Company (JSC): Suitable for larger enterprises, with capital divided into shares. Shareholders’ liability is limited to their shareholdings.
General Partnership: Partners have unlimited liability.
Limited Partnership: Includes general partners (with unlimited liability) and limited partners (liable only to their contribution).
Sole Proprietorship: Owned by one individual who has unlimited liability.
3. Company Formation
Must register with the Commercial Register.
Submit articles of association, company name, and capital details.
Minimum capital requirements differ by company type.
Approval from relevant ministries may be required depending on the business activity.
4. Regulatory Authorities
Ministry of Industry and Trade: Supervises commercial registrations and corporate regulations.
Commercial Chambers: Help with business registrations and trade affairs.
5. Corporate Governance
Companies must hold annual general meetings.
Appoint directors and auditors as required.
Maintain proper accounting records and submit annual financial statements.
6. Challenges and Context
Yemen’s ongoing conflict and political instability have affected corporate activity and enforcement.
Legal reforms are slow, and enforcement of corporate governance rules can be inconsistent.
Foreign investment is regulated with specific rules on ownership and operation in certain sectors.
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