The Essentials of Company Incorporate in Jordan
The Hashemite Kingdom of Jordan offers a compelling landscape for business ventures, supported by its strategic location at the crossroads of Asia, Africa, Europe and the Middle East. The country provides a conducive environment for international companies to flourish with its free trade policies and investment incentives. Furthermore, Jordan’s diverse economy spans sectors like technology, manufacturing and tourism, offering many opportunities for business growth and expansion. If you’re looking to company incorporate in Jordan, this is a must-read article for you!
How To Start Your Business in Jordan
We have compiled some pointers to get you started on your journey. Remember that while this article covers all the basics of company incorporate in Jordan, some due dilligence from your part may be needed depending on the nature of your business.
Choose a Business Structure
Before starting off your journey in setting up a business in Jordan, it is important to understand what businesses are available and their respective characteristics. Take a look below.
|Public Limited Company (PLC)
|Jordan Limited Liability Company (LLC)
Choose and Reserve a Business Name
Firstly, pick a business name that is unique and appropriate. You can conduct a simple search of the Companies Control Department’s (CCD) database of registered business names to check it. Then, proceed to reserve it with the CCD. Reserving the business name through the CCD takes about one to three complete, at a cost of JD 50. This will give you exclusive rights to use the name for a period of six months.
Draft the Memorandum and Articles of Association
The Memorandum and Articles of Association are the governing documents of the company. After drafting these, you can move on to company registration. A memorandum of association should contain the fundamental and essential details regarding a company, including its name, registered office, objectives, authorized capital, and initial shareholders’ subscription details.
Obtain a Certificate of Incorporation
After filing the documents for company registration, the CCD will issue a Certificate of Incorporation. This official document serves as proof that the company has been legally registered.
Obtain a Tax Identification Number (TIN) and a Commercial Registration
Companies will need to obtain a TIN from the Income and Sales Tax Department (ISTD). This number will be used for tax purposes. The company will need to obtain a Commercial Registration from the Ministry of Industry, Trade and Supply. This is a permit that allows the company to operate a business in Jordan.
Register with the Social Security Corporation (SSC)
To ensure employee welfare and social security, businesses in Jordan must register with the Social Security Corporation (SSC). The process typically takes up to seven days and comes at no cost, making it easily accessible to all eligible employers with five or more employees. By completing the necessary registration form, businesses can fulfil their legal obligation and provide social security benefits to their employees.
Apart from work visas, foreign directors and company shareholders in Jordan must obtain a work permit from the Ministry of Labour.
What You Should Also Know…
Here are some additional things to remember when setting up a business in Jordan. The cost of setting up a business in Jordan can vary depending on the type of business and the location. However, it is generally considered to be relatively affordable. The business registration process in Jordan is relatively straightforward and can be completed in weeks, typically four weeks.
The registered office of a company incorporated in Jordan must be located in Jordan. The office can be the physical address of the company’s place of business or a virtual office. The corporate tax rate in Jordan is 25%. However, several deductions and exemptions can reduce the effective tax rate.
Several sectors in Jordan are limited exclusively to Jordanian nationals. These sectors encompass banking, insurance, telecommunications, air transport, and tourism. These restrictions are set to ensure these key industries have local participation and their interests are taken care of.
Let Us Give You A Hand
Overall, Jordan is a good option for foreign investors looking to set up a business in the Middle East. However, starting a business in a new country alone may be a painstakingly lengthy process. With the extensive paperwork and legal practices to adhere to, it can take up a lot of your time. That’s why we’re here to help.
Our ell-encompassing team at 3E Accounting specialises in setting up businesses around the globe. Let us expedite the process so that you can get your business up and running as soon as possible! To get started, simply contact us here.