Company Registration in Jordan – A Comprehensive Guide

Jordan, located in the heart of the Middle East, offers a wealth of opportunities for entrepreneurs looking to establish their businesses. The Jordanian government has made significant strides in facilitating the process of setting up companies in the country, attracting both local and foreign investors. With a diverse economy encompassing technology, tourism, manufacturing, and agriculture sectors, Jordan presents a promising landscape for those looking to tap into its potential.

 

Getting Started with Company Registration in Jordan

Before diving into the process of company registration in Jordan, it’s essential to understand the various business structures available and their characteristics. Let’s explore the options:

Limited Liability Company (LLC)

To register an LLC in Jordan, you can have just one shareholder (founder), but obtaining the consent of the commissioner of the companies’ register is necessary. There are no restrictions on the citizenship of shareholders, but specific requirements apply to foreigners. Non-resident shareholders must make a contribution to the authorized capital, amounting to 50,000 Jordanian dinars (approximately $70,000).

It’s important to note that Jordanian legislation imposes restrictions on certain fields of activity for non-residents. The ownership of foreign investors cannot exceed 50% of the company’s capital, necessitating a joint venture agreement with a Jordanian partner. There are no requirements regarding resident directors.

An LLC can engage in commercial and manufacturing activities and must maintain a bank account and an address within Jordan. Additionally, the company is required to submit annual audit, financial, and tax reports.

Public Limited Company

A public limited company can be registered with only one shareholder (founder) and requires a minimum charter capital of $100,000, with at least 25% of the capital in circulation in the securities market. Similar to an LLC, there are requirements for a joint venture agreement with a Jordanian partner, and foreign investors cannot own more than 50% of the enterprise’s capital. No resident director requirements apply.

This type of company is also obligated to submit annual audit, financial, and tax reports. There are no restrictions on conducting import and export activities, acquiring property in Jordan, or acquiring shares of other Jordanian companies.

Non-Operating Foreign Company

Non-operating foreign companies in Jordan are governed by Chapter II of the Law of Jordan “About Companies” and Regulations. Such entities can only be registered by foreign corporations and foreign nationals. These companies serve as a representation of a foreign entity in Jordan, coordinating activities performed outside Jordan.

Company registration in Jordan for non-operating foreign firms is simpler than for LLCs. Key requirements include the presence of founders and one director, a lease agreement, and a minimum charter capital of $1. Non-resident foreigners must also invest 50,000 Jordanian dinars (approximately $70,000) in a legal entity.

Non-operating foreign companies can operate with one director and founders, but if they employ personnel, a limit of 50% for non-resident employees is imposed, with the remaining 50% being Jordanian citizens. No resident director requirements apply. However, these companies cannot engage in commercial and manufacturing activities, acquire property in Jordan, or participate in import and export activities. They must also submit annual audit, financial, and tax reports.

Operating Foreign Company – Jordan Branch Office

Foreign companies with branch offices in Jordan must have their head office registered and located outside Jordan. These companies operate in two ways:

• Contract award based on the results of a tender for carrying out activities in Jordan during a limited period.
• Temporary operation based on a license obtained from official authorities.

Foreign companies must adhere to specific requirements, including having a resident director and submitting annual audit, financial, and tax reports.

 

Required Steps for Business Formalization in Jordan

The formalisation of a business in Jordan involves a series of steps, which may vary depending on the chosen business structure. Here are the key steps to consider:

Obtain Pre-Approvals (If Needed)

Depending on your business type and activities, you may need pre-approvals.

Register as a Formal Entity

Register your business as a formal entity in Jordan, adhering to the specific requirements of your chosen structure.

Register a Trademark or Tradename (Optional)

Consider registering a trademark or tradename for your business.

Become a Member of a Chamber of Commerce or Chamber of Industry

Membership in a chamber of commerce or industry is mandatory for certain business types.

Obtain a Vocational License

Acquire a vocational license, which is mandatory for most businesses.

Once you complete these initial steps, your business will be considered fully registered and licensed in Jordan. However, additional steps are required to become fully operational, including registering with the tax department, enrolling in Social Security, obtaining work permits for non-Jordanian employees if applicable, and activating utilities such as electricity and water at your business location.

 

Looking For Company Registration in Jordan?

While it may be overwhelming to register a company in a foreign country, you don’t need to worry. Whether you choose an LLC, a public limited company, or a non-operating foreign company, Jordan’s dynamic economy beckons. Partner with 3E Accounting for effortless registration so you can focus on growing your venture in Jordan’s promising market.