Here’s a practical guide on the nuts and bolts of setting up shop in Jordan.
There are a few business structures for you to choose from when doing business in Jordan.
This type of company is formed by at least two partners and a maximum of 20 partners. All of them must be over 18 years old, and are jointly and severally liable to the business.
This company allows for a mix of general and limited partners. The number of partners can range from two to 20, and each of them must be at least 18 years old.
General partners are responsible for the day-to-day management of the company and do not have limited liability. Limited partners contribute only to the capital of the company but have no authority or involvement in the company’s operations. They are limited to their own shares in the company.
This type of company has a more complex structure. While it is typically founded by two or more shareholders, a limited liability company can also be incorporated by a single owner – upon prior consent from the Companies’ Control Department in Jordan.
A private shareholding company are limited liability companies, whose stocks is offered, owned and trade privately.
Do ensure you have gotten the pre-approvals from Jordan Ministry of Industry, Trade and Supply, and/or Companies Control Department prior to registering for your business.
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1 https://www.startupguidejo.com/en 2 https://www.pkf.com/media/608484/doing business in jordan.pdf
There must be at least one director for your company.
Foreign companies require at least one resident director.
Yes, most companies can be fully-owned by foreigners, except for certain industries (e.g. construction) where foreign entities may not have ownership in excess of 50%.
There are no restrictions on capital transfers and repatriation of profits from Jordan.
The corporate tax rates vary depending on the industry or business activity your company operates in. According to the income tax law in Jordan, the corporate tax rates are:
There are tax incentives available for certain companies registered in development zones or free zone areas in Jordan.
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No, there is an exemption from taxes.
It is at 16%.
As an employer, you will need to contribute 14.25% of an employee’s salary, while your employee will contribute 7.5%.5
Yes, you will need to apply for a work permit for your Singaporean employee with the Ministry of Labour in Jordan. The requirements vary depending on whether the worker will be employed in a Qualified Industrial Zone.
Yes, you must have a physical office in Jordan.
3 https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158905/lang--en/index.htm 4 https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/global-jordan-2019-labor-law-amendments.aspx 5 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-jordanhighlights-2019.pdf
Please note all information is based on online sources, and is provided in good faith for guidance and reference purposes only. It is correct as of December 2019.