In order to open a company in Jordan, the investors have to perform specific procedures, following the legislation applicable in this country. A legal entity in Jordan has to be registered with the local authorities for corporate taxation, social security, obtaining specific licenses and submit the requested legal documents. Our team of consultants in company formation in Jordan can provide legal advice on the order in which such steps are to be completed and can help foreign businessmen in choosing a legal entity that will best suit their investment plans.
Register with the relevant authorities in Jordan
All companies in Jordan have to register with the institutions that supervise the activity of commercial businesses. Any legal entity must submit a set of documents with the Ministry of Industry and Trade, as follows:
- application for company registration;
- the company’s statutory documents;
- a proof stating that the investors have deposited 50% of the company’s minimum share capital in a local bank account (the value varies in accordance with the business form that will be registered here);
- a copy of the applicant’s identity documents.
The procedure on starting a business in Jordan is then followed by the registration with the Companies Registry for tax purposes, at the one-stop-shop. The application will include the registration for:
- corporate tax;
- income tax;
- value added tax.
Through the same procedure, the applicant will receive a tax identification number, a compulsory requirement for all commercial entities, which have to register with the Chamber of Commerce. The institution will impose specific fees, which vary depending on the company’s capital and our team of agents in company registration in Jordan can offer further information on the documents that should be submitted in this case.
Types of business forms in Jordan
Most of the companies operating in Jordan are registered as one of the following:
- limited liability company;
- public limited company;
- partnership.
Foreign companies may also set up a branch office and it is important to know that the taxation of a business form in Jordan is completed depending on the business field in which the company operates.
For example, the corporate tax rate can vary between 14%- 35%; the lowest tax rate is available for industrial companies, while the latter is applicable for banking institutions.
The incorporation of a legal entity can be completed once other steps are performed and investors are invited to contact our team of specialists in company formation in Jordan for further assistance, including on the issuance of special permits.