In recent years, Jordan has positioned itself as a growing hub for foreign investment in the Middle East. Its strategic location, strong trade agreements, and political stability have made it an attractive destination for international businesses looking to expand into the region. However, understanding the legal framework governing company incorporation in Jordan is essential before taking the first step.
For foreign entrepreneurs, Jordan offers opportunities across sectors including technology, tourism, energy, healthcare, and logistics. Yet, navigating its investment laws requires clarity on ownership rights, registration procedures, sectoral restrictions, and regulatory obligations. This article provides a comprehensive overview of what international investors need to know when registering a company in Jordan.
Jordan’s Legal Framework for Foreign Investment
Foreign investment in Jordan is primarily governed by the Investment Environment Law No. 21 of 2022, which modernized and simplified several aspects of the investment climate. The law provides foreign investors with equal treatment to Jordanian nationals, except in specific restricted sectors.
The new legal framework emphasizes:
- Equal legal status for domestic and foreign investors
- Simplified procedures for company registration and licensing
- Access to investment incentives and exemptions
- Protection of investment through bilateral and multilateral treaties
Understanding these laws is vital for successfully opening a company in Jordan while minimizing regulatory and financial risk.
Foreign Ownership Rights in Jordan
Under the current investment law, foreigners can own up to 100% of businesses in most sectors. However, some industries impose restrictions or require local partners. The restricted sectors often include:
- Engineering and consultancy services
- Retail and wholesale trade
- Certain types of transportation
- Printing and publishing
- Construction-related services
For businesses in these areas, foreign investors may need to partner with a Jordanian shareholder or limit their ownership stake (often to a maximum of 49%).
Tip: Before starting the process of company incorporation in Jordan, consult the latest restricted sectors list published by the Ministry of Investment.
Key Steps to Register a Company in Jordan
The process to register a company in Jordan is streamlined compared to many neighboring jurisdictions, but it still involves several critical steps.
1. Determine the Legal Structure
The most common types of business entities for foreign investors include:
- Limited Liability Company (LLC): Requires 1–50 shareholders; most popular structure
- Private Shareholding Company (PSC): Suitable for larger investments with multiple stakeholders
- Branch Office: For foreign companies wishing to operate under the parent entity’s name
- Representative Office: Limited to marketing and liaison activities; cannot conduct commercial transactions
2. Reserve the Company Name
Submit a request to the Companies Control Department (CCD) to reserve a unique business name.
3. Draft and Notarize the Memorandum & Articles of Association
The MOA and AOA define the company’s purpose, shareholder structure, and operational rules.
4. Deposit the Capital
Minimum capital requirements vary depending on the company type and ownership structure. For fully foreign-owned LLCs, the minimum capital is typically JOD 50,000 (around USD 70,000).
5. Submit Incorporation Documents
File the required forms with the CCD, including:
- Name reservation certificate
- MOA and AOA
- Identification of shareholders and directors
- Proof of capital deposit
- Lease agreement for the company’s office in Jordan
6. Obtain Licenses and Permits
Depending on the business activity, additional licenses may be required from sector-specific authorities (e.g., Ministry of Health, Ministry of Tourism).
7. Register for Tax and Social Security
Companies must obtain a tax identification number, register for VAT (if applicable), and enroll employees in Jordan’s social security program.
Also Read: Documents Required for Business Setup in Barbados
Investment Incentives for Foreign Businesses
Jordan offers a range of incentives and exemptions for foreign investors, particularly those operating in development zones and free zones. These include:
- Customs duties exemptions on production inputs
- Zero or reduced income tax in certain sectors (e.g., ICT, energy)
- 100% foreign ownership in designated economic zones
- Repatriation of profits without restrictions
- No restrictions on currency conversion
These incentives are aimed at boosting exports, job creation, and the transfer of knowledge and technology.
Tip: The Ministry of Investment provides an investment map detailing the sectors and locations where these incentives are available.
Opening a Company in Jordan: Costs and Timeframe
The cost of opening a company in Jordan varies based on the business structure, sector, and legal requirements. Key costs include:
- Government fees for registration and licensing
- Legal and notary services
- Office lease and furnishing
- Capital deposit (if required by law)
- Translation and documentation costs
Estimated timeframe: The entire process typically takes 2–4 weeks, depending on the completeness of documentation and licensing complexity.
Also Read: Procedure for Company Incorporation in Spain
Ongoing Compliance and Reporting
Once a company is registered, it must adhere to Jordan’s regulatory compliance framework. Obligations include:
- Annual financial statements and audit (for certain types of companies)
- Quarterly and annual tax returns
- Social security contributions
- Business license renewals
- Commercial and VAT invoices management
Failure to comply can result in penalties, license suspension, or deregistration.
Tip: Consider working with a local legal or accounting firm familiar with corporate compliance in Jordan to ensure timely reporting and renewals.
Dispute Resolution and Legal Protections
Foreign investors benefit from legal protections under Jordanian law and international treaties, including:
- Investment promotion agreements (IPAs) with several countries
- Bilateral Investment Treaties (BITs) offering protection against expropriation
- Access to international arbitration under ICSID or UNCITRAL rules (in case of disputes)
The Jordanian judicial system also allows for dispute resolution through civil courts, commercial courts, and specialized arbitration centers.
Conclusion
Jordan offers a structured and investor-friendly legal framework for foreign business owners. From flexible ownership rules to clear licensing procedures and tax incentives, the country presents a compelling case for regional or international expansion.
Still, foreign investors must fully understand sectoral restrictions, company structures, and compliance obligations before committing. Proper legal and professional guidance during the process of company incorporation in Jordan will not only ensure full compliance but also save time and reduce costs.
Whether you’re looking to register a company in Jordan for trading, manufacturing, or service-based operations, the country offers a promising and stable environment—especially for those who take the time to understand the legal and regulatory landscape.
Frequently Asked Questions (FAQ)
1. Can a foreigner fully own a company in Jordan?
Yes, in most sectors foreigners can own up to 100% of a company in Jordan. However, some sectors are restricted or require partial local ownership. It’s important to check the Ministry of Investment’s sector-specific rules before proceeding with company incorporation in Jordan.
2. What is the minimum capital required to register a company in Jordan?
The minimum capital depends on the ownership structure. For a fully foreign-owned LLC, the minimum capital requirement is typically JOD 50,000. However, lower requirements may apply to joint ventures or companies operating in certain economic zones.
3. How long does it take to open a company in Jordan?
On average, the process to register a company in Jordan takes 2 to 4 weeks, assuming all documents are in order and no sector-specific licenses delay the process.
