The Kingdom of Jordan is a modern, stable, and investment-friendly Arabian state. Manufacturing, engineering, IT, and life sciences are the most developed areas of the local economy. Business incorporation in these or other sectors, whether in Amman or any other city of this jurisdiction, can be preliminarily assessed as profitable in view of these highlights.
Pros of Registering a Company in Jordan
Company incorporation in Jordan has numerous advantages, including:
- stable and predictable environment;
- access to huge regional and world markets;
- moderate costs to start a business and simplified administrative procedures;
- favorable conditions for venture capital and innovations;
- free zone benefits are available (including customized tax benefits, simplified procedures of getting resident permits by investors, and simplified profits repatriation);
- skilled, competitive, and moderate-cost manpower;
- developed and convenient infrastructure.
Legal and Organizational Forms
If you wish to create a company in Jordan or formalize your residency in this state in any other alternative way, the subsequent options are available and the most widespread among foreign businessmen:
- Limited liability company – a subsidiary may be established by a foreign investor in this form. At least one shareholder is required. Certain limitations with regard to each shareholder are applied – each of them will not be in charge of the potential losses of a company in excess of the funds invested. The minimal share capital expected to be contributed by a foreigner is USD 70,000 at least.
- Branch – an option that will suit a non-resident company that is going to carry out in Jordan its business at lower costs and without registering a separate legal entity. The entire liability over the debts and obligations of a branch will bear its parent company. Maintenance standards are simplified in the case of a branch.
It is also possible to establish a business in the form of a private or public shareholding company, sole proprietorship, or partnership, and the option of a representative office is available as well. Contact Aotopay attorneys to get extra details about all of these mentioned forms.
How to Form a Company in Jordan?
It doesn’t take too much time for a foreign investor to set up a company in Jordan as there is the Investment Window that was launched specially to simplify the process of starting and doing business in Jordan by non-residents. The scope of concrete actions that will be carried out in the course of company formation in Jordan comprises these ones:
- Defining a precise list of commercial activities and locations for their handling (important as zoning and sectoral approvals may be needed).
- Elaborating on and checking a business name for a Jordanian company.
- Arranging office premises that will serve as an official legal address.
- Paying up starting share capital for an entity.
- Drafting and executing corporate documents for a future Jordanian company, including the Memorandum and Articles of Association and resolutions of shareholders. It will be also necessary to provide the details about the company's shareholders, board of directors, beneficiaries, and mother company (if any).
- Submitting the set of documents for consideration. Entering the information about a new company in the Register of Companies. Getting the registration certificate.
- Registration with the Income and Sales Tax Department and the Social Security Cooperation.
- Opening corporate bank accounts.
Legal and Regulatory Landscape
Jordanian laws envisage equal treatment for both local and foreign businessmen. Discrimination is forbidden with regard to non-residents. They may own 100% of a company and enjoy various incentives. No restrictions are also imposed on the repatriation of profits and capital.
Taxation Aspects
Whether you wish to purchase a ready-made company in Jordan or create a new one, any of these options need the review of the next tax highlights:
- Profit tax (for enterprises) – (1) general rate – 20% (2) telecommunication, insurance companies, and financial intermediaries – 24% (3) banks – 35%
- Income tax (for natural persons) – 30%
- Sales tax (VAT alternative) – 16%
- Withholding tax (for non-residents) – (1) dividends – 0% or 10% (2) interests – 0% (3) royalties – 0%
- Capital gains tax – (1) for enterprises – 20% (2) for natural persons – 30%
How Aotopay Attorneys Can Assist
If you wish to launch the process of registering a company in Jordan and carrying out your business from this jurisdiction, Aotopay attorneys are prepared to support these business processes at each stage. Send the background details and enjoy fully personalized and professional legal support.