The Arabic peninsula country of Jordan is formally known as the Hashemite monarchy of Jordan. It is regarded as the smallest Arab nation. The dead sea lies next to the nation, and more than 26 kilometers of coastline surround it. Officially, Jordan is situated halfway between Asia, Africa, and Europe. As a corporation may be established with just one director and shareholder, company registration in Jordan is fairly simple. A director and shareholder may come from any country.
Minimum requirements to register a business
The following qualifying requirements must be met to register a business in Jordan:
Least shareholders
To register a corporation, an applicant must choose a minimum number of shareholders. For instance, only one shareholder is required to incorporate an LLC in Jordan. Therefore, the application must meet the minimal shareholder requirement.
Directors
Additionally, a candidate must meet the standards for corporate directors. An LLC must have one director. This is the bare minimum legal prerequisite for registering a corporation.
Representative
To establish a branch office or representative office in the country, a foreign parent firm must select a representative. The international business must provide evidence that it has domestic activities.
Obey the corporation’s legislation no. 22 of 1997
An applicant who wishes to create a business in Jordan must comply with “the companies law no.22 of 1997”.
Necessary documents
The following papers must be submitted to register a business in Jordan:
- Application completed in full
- Draft of an association agreement
- Articles of incorporation draft
- Details about stockholders
- Lease contract
- Passports and visas for foreign directors and shareholders
- Information on the selection of a representative
How to register a business in Jordan
The applicant for a Jordanian business registration must adhere to the following steps:
Selecting a business form
Depending on how you wish to manage your business, you may pick from a variety of business formations. They consist of:
- Jordan public limited company
- Branch office
- Offshore business
- Reprographic office
The nod to a name
The firm name must be reserved first and foremost. The business name must be compliant with the Jordanian companies act.
Minimum investment
The applicant must meet the minimum capital requirements after the company name has been secured. The moa and AOA would both say this.
Put money in the bank
If a foreign shareholder establishes the firm, the required minimum capital must be deposited. Bonds can be deposited with certain firms, and these companies are excluded to a limited extent.
Get the ministry of trade and industry directorates’ approval
After this phase is finished, the ministry of trade and industry directorate must provide the relevant approvals.
File a request
When the application is finished, it has to be sent together with the appropriate paperwork. Following this, the ministry would examine the supporting papers, and if everything was in order, they would issue the applicant with a certificate of incorporation.
Requirements for Jordanian business registration
When registering a business in Jordan, the following requirements must be met:
Investors’ meeting
At least once every year, shareholders’ meetings are required. The company’s registrar must receive all copies of the shareholders’ meeting. After this meeting, you have 10 days to complete this.
Agreements
The ministry of trade and industry requires that all agreements, including joint venture agreements, be registered.
Financial records
The ministry of finance must get copies of all business documents and financial statements.
Corporation tax
Corporations founded in Jordan are required to file corporate tax at a 14% rate. There are, however, some exceptions for specific businesses. For ten years, for instance, businesses in the renewable energy industry are exempt from paying taxes.
Lease contract
All businesses are required by Jordanian law to have a leasing agreement. This agreement shall be effective for a 12-month term.
Association bylaws
The company’s articles of association must be accessible to the public following Jordanian law. There must be details about the directors and stockholders.
