The Companies Law of 1997 in Jordan confers the legal frame for setting up various types of legal entities by foreign entrepreneurs. The most popular companies which are opened by foreigners in this country are the limited liability company, the private shareholding company and the public shareholding ones.
In this article, our company formation agents in Jordan explain what the share capital of various legal entities in Jordan is.
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The share capital of a limited liability company in Jordan
A limited liability company (LLC) in Jordan has to be made of minimum two shareholders. The nominal value of every share is JD 1 (USD 1.4) and only one class of shares is allowed.
Thepaid-up capital for such a company at the point of the company registration in Jordan has to be of minimum 50% of its entire share capital, and the other 50% has to be acquitted in maximum two years from the registration date.
The foreign entrepreneur, though, is obliged to acquit at least JD 50,000 (USD 70,260) when the LLC is registered.
The company can be managed by only one managing director or by a board of directors comprised of two to seven members.
The public limited company in Jordan
A public limited company (LTD) in Jordan must have one shareholder, who was previously agreed upon by the Companies Registrar Commissioner and a paid-up share capital of minimum USD 100,000.
Foreign investors are able to open such a company in Jordan, however, they have to acquit minimum USD 70,650 of the share capital of the legal entity and they are required to form a joint venture with a local citizen, if they intend to invest in restricted sectors.
The non-operating foreign company
The procedure of company registration in Jordan of such a legal entity is much simpler than that of an LLC.
The main criteria for such a company registration here is the presence of a founder and of a director, the conclusion of a lease agreement and a minimum charter capital of USD 1.
Simultaneously, the local legislation offers non-residents in Jordan the condition of an investment of minimum JD 50,000 (USD 70,000) for this type of company.
If you have more questions about the minimum share capital in Jordan, or for assistance in starting a business in Jordan, please do not hesitate to contact us.