Jordan, officially known as the Hashemite Kingdom of Jordan, is a key business hub in the Middle East, circumferenced by Syria, Iraq, Saudi Arabia, Israel, and Palestine. Its strategic geographical location along with its stable political climate has made it an attractive destination for entrepreneurs and investors around the world.
Jordan’s Business Landscape
The country offers a diversified business landscape that includes a variety of company types. Trade, information technology and e-commerce, tourism, and real estate are among the most prolific sectors in Jordan. The country adopts a friendly and open economic policy which greatly facilitates ease of doing business.
Types of Companies in Jordan
The legal framework in Jordan allows for the establishment of the following types of companies:
1. Limited Liability Company (LLC): This is the most common type of company in Jordan. In an LLC, the liability of the shareholders is limited to their shares in the company’s capital. The minimum capital requirement for an LLC is JOD 1,000.
2. Public Shareholding Company: This type of company is characterized by having its capital divided into negotiable shares of equal value. To establish a Public Shareholding Company in Jordan, a minimum of JOD 50,000 is required.
3. Private Shareholding Company: Like a public shareholding company, a private shareholding company also has its capital divided into shares. However, these shares are not offered to the public.
4. Foreign Company Branch: Jordan also permits foreign companies to operate within its borders by establishing a branch in the country. The branch’s activities are restricted to the parent company’s activities.
5. Temporary Business Pursuit Offices: This type of entity is not a company per se but allows foreign firms to complete a contract or project that is expected to last for a specific period of time in Jordan.
6. Non-Profit Companies: These are companies that are established to serve the public interest. They do not aim to generate profit and their capital is not divided into shares.
Conclusion
The Hashemite Kingdom of Jordan provides a conducive environment for business establishment and growth. Its modernized corporate laws and economic policies facilitate a range of company types such as LLCs, public shareholding companies, private shareholding companies, and branches of foreign companies. As such, Jordan proves to be a promising destination for global entrepreneurs and investors seeking growth and investment opportunities in the Middle East.
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