Starting a business in Jordan can be an exciting opportunity, whether you're a local entrepreneur or a foreign investor. The country’s strategic location, developed infrastructure, and free trade agreements with multiple regions make it an attractive destination for business. However, registering your company in Jordan involves navigating legal procedures, documentation requirements, and decision-making that can seem overwhelming at first.

This guide provides a comprehensive checklist to help you successfully register a company in Jordan, understand the legal landscape, and get your business up and running efficiently.

1. Decide on the Type of Business Entity

The first step in opening a company in Jordan is choosing the appropriate legal structure. The most common types of business entities include:

• Sole Proprietorship

• Limited Liability Company (LLC)

• Private Shareholding Company

• Public Shareholding Company

• Foreign Company Branch or Representative Office

Each structure has different rules regarding ownership, liability, taxation, and capital requirements. For most small to medium-sized businesses, a Limited Liability Company (LLC) is the preferred option due to its simplicity and flexibility.

2. Choose a Unique Company Name

Your business name must be unique and approved by the Companies Control Department (CCD) under the Ministry of Industry, Trade, and Supply. Before you submit your company registration in Jordan, check that your proposed name is not already in use. The name should not violate public order or contradict religious or moral values.

You can perform a name check online through the CCD’s website or visit their offices directly. Once your company name is approved, you can proceed with the incorporation process.

3. Determine Shareholders and Capital Structure

Identify the shareholders, their respective ownership percentages, and the initial capital investment. In Jordan, the minimum capital requirements depend on the type of company:

• For an LLC, the minimum capital is usually 1,000 Jordanian Dinars (JOD).

• For a Private Shareholding Company, the minimum capital is 50,000 JOD.

• For a Public Shareholding Company, the capital requirement is higher at 500,000 JOD.

Note that foreign ownership is permitted in many sectors, although there are restrictions in some industries such as transportation, wholesale trading, and recruitment.

4. Prepare and Submit Required Documents

To register a company in Jordan, you need to prepare and submit the following documents:

• Application form for company registration

• Memorandum and Articles of Association

• Identity documents or passports for all shareholders and directors

• Proof of registered office address

• Power of attorney if using a third-party agent

• Bank certificate confirming the deposit of the required capital

For foreign investors, additional documents such as translated and notarized passports and proof of foreign company registration (for branches or representative offices) may be required.

All documents must be submitted to the Companies Control Department for review.

5. Notarize and Legalize Documents

Before submission, certain documents such as the Memorandum and Articles of Association must be notarized by a licensed Jordanian notary. If foreign documents are involved, they must be translated into Arabic, authenticated by the Jordanian embassy in the originating country, and legalized by the Jordanian Ministry of Foreign Affairs.

Ensuring your documents are properly notarized and legalized is essential to avoid delays or rejection of your application.

6. Obtain Commercial Registration Certificate

Once your documents are approved, you will receive a commercial registration certificate, which officially recognizes your company as a legal entity in Jordan. This certificate is necessary to open a corporate bank account, hire employees, and conduct commercial operations.

The registration process typically takes between 1 to 2 weeks, provided all documents are in order.

Also Read: What are the Legal Requirements for Company Registration in Malta

7. Register for Tax and Social Security

After receiving your commercial registration, the next step is registering for taxation purposes. You will need to:

• Obtain a Tax Identification Number (TIN) from the Income and Sales Tax Department

• Register for General Sales Tax (GST) if applicable

• Register your employees with the Social Security Corporation

Companies are required to maintain proper accounting records and submit annual financial statements to comply with local tax laws.

8. Open a Corporate Bank Account

With your commercial registration and TIN, you can now open a corporate bank account in Jordan. Choose a bank that suits your business needs and provides services such as online banking, multi-currency support, and international wire transfers if necessary.

Some banks may also require board resolutions or additional documents depending on your company type.

9. Obtain Sector-Specific Licenses and Permits

Depending on the nature of your business, you may need to obtain additional licenses or permits from regulatory authorities. For example:

• Food businesses require approval from the Jordan Food and Drug Administration

• Construction companies need a license from the Ministry of Public Works

• Tourism businesses must register with the Ministry of Tourism and Antiquities

Ensure you understand which permits apply to your sector before commencing operations.

10. Register for a Business Location

Your business must have a registered physical address. This can be a rented office, owned space, or a virtual office if permitted for your business type. Zoning approvals or municipal licenses may also be needed, depending on your location and industry.

Some investors choose to set up their company in a free zone, such as the Aqaba Special Economic Zone, which offers incentives like tax exemptions and streamlined procedures.

11. Hire Local Staff (If Applicable)

If your business plan includes hiring employees, you must comply with Jordanian labor laws. This includes drafting employment contracts, registering employees with social security, and adhering to working hours and minimum wage laws.

Foreign workers also require work permits, which must be sponsored by the employer and approved by the Ministry of Labor.

Also Read: What are the Business Structures for Company Registration in Cyprus

12. Keep Ongoing Compliance in Mind

Even after you’ve completed the process to register a company in Jordan, ongoing compliance is essential. You must:

• Submit annual returns and tax filings

• Renew business licenses as required

• Maintain accounting records

• Hold regular shareholder meetings (for shareholding companies)

Staying compliant helps maintain your good standing with authorities and builds trust with customers and partners.

FAQs

1. Can a foreigner fully own a business in Jordan?
Yes, foreigners can own 100% of a business in many sectors. However, there are restrictions in specific industries such as wholesale trade, transportation, and recruitment, where local ownership may be required.

2. How long does it take to register a company in Jordan?
If all documents are prepared correctly, the process typically takes between 7 to 14 working days. Delays may occur if documents are incomplete or require additional approvals.

3. What is the cost of company registration in Jordan?
The cost varies depending on the company type, capital, and whether legal or professional assistance is used. On average, expect to spend between 500 to 1,500 JOD for a standard LLC, including notary, registration, and legal fees.