News: Registration of company in Jordan

Registration of companies in Jordan

The legislation of Jordan gives foreign nationals the possibility of establishing companies of the following types of organizational and legal forms.

1) Limited Liability Company (LLC)

There are certain requirements regarding registration of such a form of enterprise. Legislation allows to register LLC with the participation of only one shareholder (founder), but at the same it is also necessary to obtain the consent of the commissioner of the companies’ register. There are no restrictions on citizenship of shareholders, but there are special requirements to foreigners. In case the company's shareholders are not residents of the Jordan, obligations to make a contribution to the authorized capital in the amount of 50,000 Jordanian dinars (which amounts to approximately $ 70 000) are imposed on them.

It should be noted that Jordanian legislation imposes restrictions in certain fields of activity for non-residents of the Kingdom. Ownership of foreign investor shall not exceed 50% of the company’s capital, accordingly it is necessary to sign joint venture agreement with Jordanian partner. There are no requirements regarding resident director.

Company can carry out commercial and manufacturing activities. For functioning of the company there are requirements of opening bank account and presence of the address in the territory of Jordan. Company shall also submit audit, financial and tax reports annually.

2) Public limited company

Such company can be registered even with only one shareholder (founder) with minimum charter capital in the amount of US $ 100,000 (at the same time minimum 25% of the capital shall be in circulation in the securities market). There are requirements of signing joint venture agreement with Jordanian partner. Ownership of foreign investor shall not exceed 50% of the capital of the enterprise. There are no requirements regarding resident director.

Company has also to submit audit, financial and tax reports annually. There are no restrictions regarding conduct of import and export activities, acquisition of property in Jordan, and it is also allowed to take up shares of other Jordanian companies.

3) Non-operating foreign company

The activities of such companies are governed by Chapter II of the Law of Jordan "About Companies" and Regulations. Such organizational and legal form can be registered only by foreign corporations and foreign nationals. It represents company, which representation is located in Jordan and performs actions in the Kingdom to control and coordinate its activities, which it performs outside Jordan.

The process of registration of the company in Jordan is conducted much simpler than registration of the LLC. The main requirements for registration are presence of the founders and one director, conclusion of the lease agreement, as well as existence of minimum charter capital in the amount of $ 1. At the same time legislation provides for non-residents of Jordan the condition of financial investments in the amount of 50,000 Jordanian dinars (approximately $ 70,000) in either legal entity.

Company can carry out its activities with participation of one directors and the founders, but if the company has hired employees, there is a limit of 50% for non-resident employees, and another 50% should be citizens of Jordan. There are no requirements regarding resident director.

Company can not carry out commercial and manufacturing activities, acquire property in Jordan, and there is also ban on the import and export of goods. Company also has to submit audit, financial and tax reports annually.

4) Operating foreign company, Jordan branch office

Head office of such company has to be registered and located outside Jordan. There are two types of activities of such company:

1. Contract award based on the results of the tender for carrying out activities in Jordan during certain limited period.
2. Company temporarily operates based on license obtained from the official authorities. There are requirements regarding resident director and submitting annual audit, financial and tax reports.

It is now simple and easy to buy or register business in Jordan. Let business registration in Jordan become a firm start for you! Registration of companies in various jurisdictions is one of the most important directions of our work.