REGISTRATION OF COMPANY IN JORDAN
Jordan, an Arab nation on the east bank of the Jordan River, is defined by ancient monuments, nature reserves, and seaside resorts. It’s home to the famed archaeological site of Petra, the Nabatean capital dating to around 300 B.C. Set in a narrow valley with tombs, temples, and monuments carved into the surrounding pink sandstone cliffs, Petra earns its nickname, the "Rose City."
Jordan ranks high in the Human Development Index and has an upper-middle-income economy. The Jordanian economy, one of the smallest economies in the region, is attractive to foreign investors based upon a skilled workforce. The country is a major tourist destination, also attracting medical tourism due to its well-developed sector. Nonetheless, a lack of natural resources, a large flow of refugees, and regional turmoil have hampered economic growth.
WHAT ARE THE STEPS I NEED TO TAKE TO FORMALIZE MY BUSINESS IN JORDAN?
1. Obtain pre-approvals if needed
2. Register as a formal entity
3. Register a trademark or tradename
4. Become a member in a chamber of commerce or chamber of industry
5. Obtain a vocational license
6. Register your business with the tax department
7. Enroll in Social Security
8. Obtain work permits for any non-Jordanian employees
9. Activating electricity in your place of business
10. Installing a water line in your place of business
WHAT TYPE OF BUSINESS TO REGISTER?
Individual Establishments are the simplest business structure. You can open an individual establishment by applying for a permit from the Central Registration Directorate at the Ministry of Industry and Trade, or the Commercial Registrar in areas outside of Amman. From a legal standpoint, this type of business is not seen as separate from the owner, therefore the owner does not have limited liability. This means the owner is personally responsible for covering all legal, financial, and administrative costs incurred by the business. Capital: the minimum capital required is JD 1,000 You are not required to provide evidence of capital when applying to open an individual establishment however the Registrar may request to see documentation at his or her discretion.
General Partnership Company
A general partnership company must have at least two owners. Each owner is fully obligated to the business, meaning that they do not have limited liability. General partnerships do not require lawyers unless the capital of the business exceeds JD 50,000. The number of partners can range from 2 to 20. Each partner must be at least 18 years of age. Capital: the minimum capital required is JD 1,000.
Limited Partnership Company
This business structure allows for a combination of general partners (just like General Partnership Companies) and limited partners (just like Limited Liability Companies).
The number of partners can range from 2 to 20. Limited partnerships do not require lawyers unless the capital of the business exceeds JD 50,000.
Limited Liability Company
Limited liability companies (LLC) usually have more complex structures. For this reason, LLCs are required to have an auditor and require a lawyer if their capital exceeds JD 20,000. (Note: the lawyer is required to file papers that confirm he or she is the legal counsel for the company) All partners are considered limited partners. An LLC usually has 2 or more owners, however, if there is only one owner, then you will need approval from the Company Controller at the Companies Control Department. The maximum number of owners (or shareholders) is unlimited. Capital: Minimum required capital to set up this business is JD 1.
Private Shareholder Company
Private shareholding companies are limited liability companies that do not offer or trade their company shares to the general public on the stock market. Rather, the company’s stock is offered, owned, and traded privately. They are usually owned either by non-governmental organizations or by a relatively small number of shareholders. Private shareholding companies are required to have an auditor and lawyer. Capital: Minimum required capital to set up this business is JD 50,000.
Important Instructions and Notes:
* The employee in charge of registering such Establishment/Company's process, and/or amendment purposes must ascertain the receipt of the original(s) for any type of the aforementioned document(s), and s/he must write a note on each/every taken or accepted copy separately: (the original has been seen), and s/he must sign next to such note on the photostatic copy/copies retained to the Chamber.
* The authorized signatory person with regards to the administrative matters should appear in person. In case of inability to attend, the Registration Form and Sector Specification Form may be obtained from the ACC and signed by the authorized signatory person. Verification or matching for such signature maybe take place at the ACC by the competent employee, and it has to be matched with the same signature (if any exists) that is available on the ACC's record files and/or system which is kept on file at the ACC's record; or by signature's endorsement of any bank working in Jordan of which the signatory person deals with.
* For Establishments/Companies registration purposes, the Power of Attorney (Special and/or General) by the administratively authorized signatory person may be approved under what the Power of Attorney document prescribes, provided that the Original of which is authenticated by the Notary Public and by the other Official Entities eligible for such certification, or the applicant may present a Certified Copy of which is authenticated by the Official Entities eligible for certifying the Powers of Attorney (Special and/or General). It is necessary to present the Original Personal Identity Card of the authorized signatory under the Power of Attorney.
* For Establishments/Companies registration purposes, Advocate Power of Attorney and signing on behalf of the administratively authorized signatory person may be approved only for the first time of registration at the ACC, provided that the Advocate Power of Attorney document mentions any of the following phrases: “Power of Attorney, or Authorization for Registration at the ACC, and/or Official, and/or Semi-Official Institutions”. The advocate must present the Original of the “Advocate Power of Attorney” document, in addition to a valid Personal Identity Card issued by the Civil Status Department, and a valid Jordanian Bar Association Card in case of registering the Company/Establishment under the Advocate Power of Attorney.
* The name of leaseholder mentioned on the Tenancy Agreement, or the name of the property owner(s): in the case of presenting the Title of Ownership instead of the Tenancy Agreement, name(s) must match with the name(s) of: ]the Individual Establishment Owner, or the Partner(s) of the Company, or the Company's Name) as it is stated on the Trade Register document, or the Commercial Name of the Establishment/Company (if any exists), or the Commercial Address as it is stated on the Trade Register document for the Individual Establishment. In case of presenting the Title of Ownership instead of the Tenancy Agreement; the Title of Ownership must indicate that the location or the department store is a Commercial and/or Industrial location (Non-Residential Location). Otherwise, the concerned person should bring forward a Copy of the Occupancy Permit and/or a Copy of the Land Zoning Chart, and/or any other Official document which proofs that the location is Commercial, verified on the above said documents, and indicating that the location is Commercial and/or Industrial, except for those owners of Establishments or Companies which they have "Home-Related Professions/Activities" on their Trade Register document and are allowed to practice their business activities within residential locations of the Greater Amman Municipality geographical boundaries according to the regulations, and in case of mismatch (even partial mismatch) of the Name(s) or Partner(s)’ Name(s) on the Tenancy Agreement, or the Title of Ownership of the documents presented to the ACC; the administratively authorized signatory person(s) should provide for the ACC a Written and Signed Letter of Commitment, indicating the mismatch on or of it, and should discharge the ACC from any responsibility which could emerge later due to such mismatch of the Name(s) contained in the Tenancy Agreement or the Title of Ownership of what exists compared with the presented documents (Trade Register, Commercial Name, etc.) while submitting the Application of Registration to ACC.
1. Refer to Information Desk to ascertain the documents required and to obtain your (turn) number.
2. Wait at the hall allocated for visitors to the Members Services Department until your number is called through the automatic calling system.
3. After receiving the application, the employee will enter the necessary data into the computer, indicating the sector to which the (ACC) member belongs. After concluding such data entry, the application will be ready for paying the fees.
4. After paying the fees, the incumbent will be handed the Membership Certificate stamped with the (ACC) seal and signed by the employee authorized to sign on behalf of the
Benefits of Company Registration in Jordan
Jordan has entered into different free trade agreements with different countries. One of the prominent free trade agreements is with the USA. Due to this, US multinationals can re-export goods with a minimum amount off tariffs. Investors can secure many benefits from this.
The corporate tax levied in Jordan is only 14%. This amount of tax is comparatively less when compared to other jurisdictions present in Arabic Peninsular. Under the Jordan Investment Promotion Act (Jordan Investment Promotion Law), industries that are involved in particular sectors such as Tourism and Agriculture have a reduced corporate tax at the rate of 3%. This corporate tax is for a period of 10 years.
Companies that are engaged in the production and distribution of renewable energy are not taxed for the first 10 years.
There are more than ten free trade zones present in Jordan. Hence an investor going for company registration in Jordan can benefit from lesser corporate tax if the company is incorporated in this free trade zone. Corporate tax is levied at the rate of 5% and there is no form of VAT charged in this free trade zone.
Frequently Asked Questions
1. What is the minimum capital required for company registration in Jordan?
The minimum capital requirement is different for all companies in Jordan. For an LLC the minimum capital is JD 30,000.
2. What is the main law related to company registration in Jordan?
The main law for company registration in Jordan is the ‘Companies Law No. 22 of 1997’.
3. Is Jordan a good place to make an investment?
Jordan is considered as the second smallest market in Arab after Bahrain. Hence if your company wants to start operations in the Middle East at a cheap rate then this would be a good destination to make an investment.
4. What are the benefits of incorporating a company in Jordan?
The following are the benefits of incorporating a company in Jordan:
5. What is the most utilized business structure in Jordan?
The most utilized business structure in Jordan is an LLC as it is quite straightforward to incorporate this form of entity.