Foreign investors may set up several types of business forms in Jordan, which is a country that also offers free zones for specific business activities. When starting a business in Jordan, it is necessary to follow the provisions of the Companies Law 1997, which prescribes the legal grounds for commercial activities in this country. Our consultants in company registration in Jordan may provide advice on the documents that must be submitted by foriegn investors, as well as on the legal procedure for incorporation.
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Company types in Jordan
When performing commercial activities in Jordan, the investors may choose from two types of legal entities, as presented below:
- private shareholding companies (PSC);
- limited liability companies (LLC).
In addition, foreign entities may also set up a branch office in Jordan, as well as offshore companies and mutual fund companies.
The main difference related to the procedure of company formation in Jordan for a PSC or a LLC is given by the company’s capital. In the case of a LLC, the legal entity may be registered with a minimum share capital of JD 1, while in the case of the PSC, the share capital is established at JD 50,000. It is also important to know that the private shareholding companies benefit from a more flexible legislation compared to limited liability companies. Our team of company formation agents in Jordan can offer further information on the provisions applicable to these legal forms.
Registration of a company in Jordan
In order to open a company in Jordan, it is necessary to open a corporate bank account. According to the commercial legislation, investors will need to deposit at least 50% of the company’s minimum share capital in the respective bank account. Any commercial company is also required to register with the Companies Registry, working under the supervision of the Ministry of Trade and Industry, by submitting specific documents, such as the company’s articles of association and memorandum and a proof of depositing the minimum share capital.
The following procedure refers to obtaining a tax identification number and registering for taxation (corporate taxation, value added tax). This can be performed by submitting a single form with the Companies Registry.
The company registration procedure in Jordan is also comprised of other compulsory steps. Businessmen are invited to address to our team of specialists in company formation in Jordan for in-depth advice.