Good to know
Good to Know
- For most business activities you do not need a Jordanian partner to incorporate — 100% foreign ownership is standard for an LLC, but retail/wholesale trade, construction, and some transportation activities cap foreign ownership at 50%, requiring a Jordanian joint-venture partner.
- Sources disagree on whether a JOD 50,000 minimum capital injection is still mandatory specifically for foreign shareholders — some older guides still cite it as a hard requirement, while more recent updates say it was abolished and now only affects eligibility for an investor residency card. Confirm current status directly with the CCD or a Jordanian lawyer before budgeting.
- Since a 2024 amendment, you only need to pay in 50% of your declared capital at incorporation, with the rest due within 60 days — useful for managing upfront cash flow.
- The CCD's public registry search (ccd.gov.jo) is Arabic-only, so budget for translation help or a local fixer/lawyer even for basic company lookups.
- Incorporating the company and getting a personal work/residency permit to run it day-to-day in Amman are two separate processes — a foreigner-owned company can be registered without the owner already holding Jordanian residency, but working in the country legally still requires a Ministry of Labor work permit.
- For a solo digital nomad, going the sole-proprietorship/freelancer route is far simpler and cheaper than forming an LLC — but it comes with unlimited personal liability and no separation between personal and business assets.
- Forming an LLC as a non-resident foreigner typically requires a capital contribution around JOD 50,000 (roughly USD 70,500) — a real barrier for small solo operations, which is why many nomads simply invoice foreign clients from a home-country entity instead of incorporating locally.
- VAT/GST registration (16% standard rate) only becomes mandatory once annual turnover passes JOD 100,000 — many small freelance operations stay below this threshold.
- Corporate tax returns are due within four months of fiscal year-end (April 30 for a standard calendar-year company) and must be filed online through the ISTD portal — don't rely on a paper process.
- If minimizing corporate tax is a priority, look into Jordan's free zones, development zones, or the Aqaba Special Economic Zone, which offer meaningfully reduced corporate rates (as low as 5%) for qualifying activities.
- Certain business activities (trading, transportation, construction, and a few others) require a Jordanian partner holding at least half the company — check your specific activity code before assuming 100% foreign ownership is possible.
Corporate Income Tax
- Standard Rate Percent
- 20
- Worldwide Vs Territorial
- A company registered and managed in Jordan (including having its management head office there) is treated as tax resident and is generally taxed on worldwide income, though most foreign-source income is excluded in practice; a locally registered branch of a foreign company is taxed on Jordan-sourced income at standard corporate rates.
Sector Variations
- Banks: higher rate (around 35% per most current summaries)
- Telecommunications, insurance, reinsurance, financial intermediation, currency exchange, finance leasing, electricity generation/distribution, and mining of raw materials: 24%
- Development Zones: reduced flat rate of 5% or 10% depending on local-origin activity rules
- Aqaba Special Economic Zone (ASEZ): reduced flat 5% rate on net profits
- Free zones: exemption from income tax on profits from exportation services, transit trade, and sales within the free zone
National Contribution Tax
- Rate Range Percent
- 1 to 7
- Description
- An additional tax layer on top of standard corporate tax, applying to taxable income of all legal entities, with the rate depending on sector and activity.
Structure Options For A Foreigner
Foreign Branch Registration
- Liability
- The parent company remains fully and directly liable for the branch's obligations in Jordan — there is no corporate veil.
- What It Is
- An extension of the foreign parent company rather than a separate Jordanian legal entity; used by foreign companies undertaking a specific project or licensed activity in Jordan.
- Registration Steps
- Certify incorporation documents at a Jordanian embassy, register with the Companies Controller, obtain the foreign branch registration certificate, secure Chamber of Commerce membership, and register with the ISTD. This process typically takes about four to six weeks (longer if embassy legalization is slow).
- Note
- Some regulated activities and government/institutional tenders require a locally incorporated LLC rather than a branch.
LLC Limited Liability Company
- Liability
- Limited to each shareholder's capital contribution; can be formed with a single shareholder, though non-resident sole shareholders need the Companies Registry commissioner's consent.
- What It Is
- A separate legal entity; the most common structure for foreign investors wanting liability protection.
- Registration Steps
- Reserve a unique company name via the Companies Control Department (CCD) portal, draft and notarize the Memorandum/Articles of Association, register with the CCD (Companies Controller), obtain a TIN from the ISTD, register for VAT if applicable, enroll with the Social Security Corporation (SSC) if hiring staff, and open a corporate bank account. Formation typically takes roughly six to eight weeks.
- Ongoing Obligations
- Annual financial statements, corporate tax filing, and (for LLCs with employees) mandatory social security contributions.
- Minimum Capital For Non Resident Shareholders
- JOD 50,000
Where shareholders are non-residents of Jordan, this capital contribution requirement applies; capital rules were also amended in 2024 to require paying in 50% of registered capital at incorporation with the balance due within 60 days.
Sole Proprietorship Freelancer
- Best For
- Simple, low-overhead operations (e.g., an individual consultant) where the founder is comfortable with unlimited liability and doesn't need a distinct corporate vehicle for contracts or banking.
- Liability
- Unlimited personal liability — no legal separation between personal and business assets.
- What It Is
- A business run by one individual under their own name or a registered trade name, with no separate legal entity created.
- Registration Steps
- Register with the Ministry of Industry, Trade and Supply (MITS) and obtain a Tax Identification Number (TIN); register for VAT only if turnover exceeds the JOD 100,000 threshold.
VAT GST
- Standard Rate Percent
- 16
- Registration Threshold
- JOD 100,000
- Note
- VAT/GST registration becomes mandatory once annual turnover crosses this threshold; below it, VAT registration is generally optional/not required.
Filing Obligations
- Corporate Tax Return
- Filed online via the Income and Sales Tax Department (ISTD) portal, due within four months after the end of the company's fiscal year (e.g., April 30 for a December 31 year-end). The return must include income, expenses, exemptions and the tax due, and the tax balance must be settled by the same deadline.
- Authority
- Income and Sales Tax Department (ISTD), under the Ministry of Finance, governed by the Income Tax Law and the General Sales Tax Law.
- Penalties
- Late filing or late payment triggers penalties plus interest linked to a rate set by the Central Bank of Jordan.
- VAT Returns
- Filed periodically (commonly quarterly) once VAT-registered.
Foreign Ownership Restrictions
- General Rule
- For many sectors, foreign investors can own up to 100% of a company's shares.
- Work Permits
- Foreign business owners and any foreign employees must obtain valid work permits (approved by the Ministry of Labor) and residency permits, which are typically renewed annually.
- Restricted Sectors
- Certain sectors — including trading, transportation, and construction — require a Jordanian partner holding at least 50% of company shares; some activities (e.g., military-related services, media, and select public-utility sectors) are restricted or closed to foreign ownership entirely.
Incorporation Process And Requirements
Typical Costs
- Stamp Duty
- A small stamp fee (around 0.3% of relevant transaction value) applies to registration filings.
- Capital Deposit
- 50% of declared share capital must be deposited at incorporation (variable by declared capital amount), balance due within 60 days.
- Additional Costs Not Fixed
- Legal/agent fees, office lease deposit, and any sector-specific license fees are additional and vary widely by structure and industry.
- Registration Certificate Issuance
- JOD 15
- Document Notarization Translation Per Document
- JOD 11
Realistic Timeline
- End To End Estimate
- Multiple sources estimate that a complete LLC registration (name reservation through Certificate of Incorporation) commonly takes about 10–20 working days for straightforward cases, but this can extend to several weeks (some sources cite up to roughly 2–23 weeks) for foreign-owned entities, restricted sectors, or activities needing special sector approvals.
- Reported Actual Average
- In 2023, the average time of completion was seven working days for the government review step, though companies report the overall experience ranges from quick to long depending on the case.
- Official Statutory Review Window
- Jordanian law requires relevant government entities to review and return a registration application within 15 working days via the Ministry of Investment's Comprehensive Investment Service window; if they don't respond, the application is deemed automatically approved.
Capital Requirements
- Payment Schedule
- Under the 2024 amendment to the Companies Law, 50% of the declared share capital must be paid in at the time of incorporation, with the remaining balance due within 60 days.
- General LLC Minimum
- There is no single fixed statutory minimum for most LLCs; commonly cited minimum capital figures for standard activities run roughly JOD 1,000–30,000 depending on the declared business activity.
- Foreign Investor Specific Minimum
- Historically, non-resident/foreign shareholders were required to inject a minimum of JOD 50,000 (~USD 70,650) into an LLC. More recent 2025–2026 legal-update sources report this specific JOD 50,000 foreign-investor minimum has been abolished, and it now only sets the threshold for obtaining an Investor Card (a residency-linked benefit) rather than being mandatory for registration itself.
- Public Shareholding Company Minimum
- A Public Shareholding Company requires at least one shareholder and paid-up capital of at least USD 100,000, of which at least 25% must be placed in the securities market.
Regulatory Authority
- Primary Registrar
- Companies Control Department (CCD), under the Ministry of Industry, Trade and Supply
- Notes
- Companies register with the CCD (or with the Chambers of Commerce/Industry depending on activity), and this registration is required before a company can open a bank account, obtain a tax ID, or obtain a VAT/GST number.
Step By Step Process
- 1. Choose the legal structure (LLC, branch, representative office, partnership, or shareholding company) based on ownership goals and sector restrictions.
- 2. Reserve/approve a unique company name with the Companies Control Department / Ministry of Industry, Trade and Supply.
- 3. Draft and notarize the Memorandum and Articles of Association, defining ownership structure, capital, and business purpose.
- 4. Submit the registration application to the CCD — this can be done electronically via the CCD's e-services portal, in person, or through a licensed local attorney/notary.
- 5. Undergo Ministry of Interior security screening (foreign investors), processed as part of the CCD registration workflow.
- 6. Open a corporate bank account in Jordan and deposit the required portion (50%) of declared capital.
- 7. Receive the Certificate of Registration/Incorporation from the CCD.
- 8. Register with the Income and Sales Tax Department (ISTD) for a Tax Identification Number and, where applicable, a VAT/GST number.
- 9. Register with the Social Security Corporation (SSC) if hiring employees.
- 10. Obtain any sector-specific municipal, professional, or regulator licenses (e.g. telecom, pharma, energy regulators) before commencing operations.
- 11. Foreign owners/staff who will work in the company separately need a Ministry of Labor-approved work permit, followed by an annually renewable residency permit.
Common Legal Structures
- Limited Liability Company (LLC) — the most common vehicle for foreign investors and SMEs
- Private/Public Shareholding Company (PSC) — used for larger capital raises or public listing
- Branch of a foreign company — permitted to conduct commercial activity, but tied to executing a specific contract in Jordan
- Representative/Regional (non-operating) office — 100% foreign owned but restricted to non-trading functions (marketing, coordination, R&D); cannot invoice or trade locally
- Offshore company — for businesses transacting only with parties outside Jordan; enjoys tax exemptions
- General/limited partnership
Foreign Ownership And Local Partner Rules
- General Rule
- Jordan permits up to 100% foreign ownership of companies in most sectors, and there is generally no legal requirement to have a Jordanian partner, director, or resident representative for a standard LLC.
- Import Agent Rule
- Foreign firms cannot import goods into Jordan without appointing a locally registered agent (which can be the foreign firm's own branch or wholly owned subsidiary, so this does not necessarily require an unrelated local partner).
- Security Screening
- Foreign investors must undergo a security screening through the Ministry of Interior; this is handled as part of the standard registration process rather than as a separate application.
- Fully Prohibited Sectors
- A small negative list of activities is fully closed to foreign ownership, reportedly including things like security/investigation services, customs clearance, construction-material quarrying, and bakeries.
- Restricted Sectors Requiring Local Partner
- Certain sectors — most notably retail and wholesale trade, construction, and some transportation and clearance-related services — cap foreign ownership at 50%, meaning a foreign investor must sign a joint-venture agreement with a Jordanian partner holding the remaining share.
AI-generated estimateData refreshed July 2026
This section has no cited sources.
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Data last updated July 2026 · Verify anything important.