Starting a business in a foreign country can be a daunting task, but with the right guidance and information, the process can be much smoother. Jordan, a country known for its rich history and vibrant culture, also offers a dynamic and growing economy, making it an appealing destination for foreign investors. This article will guide you through the steps required for a foreigner to register a company in Jordan, highlighting essential information to help you successfully establish your business.
Understanding the Business Environment in Jordan
Jordan is strategically located at the crossroads of Europe, Asia, and Africa, which provides unique opportunities for trade and business. The country has made significant strides in improving its business environment, including reforms aimed at simplifying regulatory processes and encouraging foreign investment. Key industries in Jordan include tourism, textiles, pharmaceuticals, and information technology. The government actively promotes foreign investment, offering incentives and support for new businesses.
Types of Business Entities in Jordan
Before registering a company, it’s important to decide on the type of business entity that suits your needs. Common forms include:
1. **Limited Liability Company (LLC)**: This is the most popular form for foreign investors due to the limited liability protection it offers.
2. **Public Shareholding Company (PSC)**: Suitable for larger entities looking to operate on a publicly traded level.
3. **Private Shareholding Company (Ltd.)**: Ideal for smaller ventures or family-run businesses.
4. **Branch Office**: For international companies looking to establish a presence in Jordan without creating a separate legal entity.
5. **Representative Office**: For foreign companies conducting market research or promotional activities but not engaging in direct commercial transactions.
Steps to Register a Company in Jordan
1. **Reserve a Company Name**: The first step is to reserve a unique company name through the Companies Control Department (CCD) at the Ministry of Industry, Trade, and Supply. The name must not be similar to any existing companies and should comply with Jordanian naming conventions.
2. **Draft the Company Memorandum and Articles of Association**: These documents outline the company’s structure, objectives, and internal regulations. They must be prepared in Arabic and signed by all founding members.
3. **Submit the Registration Application**: The application, along with the company name reservation, Memorandum, and Articles of Association, must be submitted to the CCD. Additional documents may include identification for directors and shareholders, proof of address, and any required permits.
4. **Obtain Necessary Approvals**: Depending on the nature of your business, you might need specific approvals from relevant authorities (e.g., health, education, or tourism sectors).
5. **Deposit the Initial Capital**: The minimum capital requirement varies depending on the type of business entity. For example, an LLC typically requires a minimum of JD 1,000. This capital must be deposited in a Jordanian bank account.
6. **Register for Taxes**: New companies must register for income tax, sales tax (if applicable), and social security. This involves obtaining a tax identification number (TIN) from the Income and Sales Tax Department.
7. **Publication in the Official Gazette**: Once all documents are verified and approved, your company’s registration will be published in the Official Gazette to complete the registration process.
8. **Obtain a Business License**: Finally, you need to obtain a business license from the local municipality or relevant authorities to legally operate your business.
Additional Considerations for Foreign Investors
– **Foreign Ownership**: Foreigners can fully own most types of businesses in Jordan. However, there are restrictions in certain sectors like banking, insurance, and retail trade.
– **Investment Incentives**: Jordan offers various incentives to attract foreign investment, including tax exemptions, customs duty reductions, and easier repatriation of profits. The Jordan Investment Commission (JIC) can provide detailed information on these incentives.
– **Legal and Professional Assistance**: It is advisable to seek legal and professional assistance when registering a company. Local law firms and business consultants can provide invaluable help in navigating the regulatory landscape.
Jordan’s supportive environment for business, coupled with its strategic location and developing market, makes it an attractive destination for foreign investors. By following these steps and leveraging available resources, you can successfully register and run a company in Jordan, contributing to its growing economy and enjoying the opportunities it offers.
Suggested related links:
Ministry of Interior Affairs – Jordan