Jordan, formally known as the Hashemite Kingdom of Jordan, is a country located on the Arabian Peninsula. It can be found in West Asia’s Levant region. It is regarded as the Arab world’s tiniest country. The country is located next to the Dead Sea, with a coastline of around 26 kilometers. Jordan is in the middle of Asia, Africa, and Europe.
Corporation formation in Jordan is simple, as a company can be formed with just one director and shareholder. Any nationality can be a shareholder or director. As can be seen from the foregoing, forming a company in Jordan is a simple procedure.
Eligible Business Structures for Company Registration in Jordan
The following business formats are suitable for company registration in Jordan:
LLC (WLL)
A Jordan LLC must have at least one shareholder and one director to be formed. This type of entity requires a minimum capital of JD 30,000, which must be divided into indivisible shares with a minimum value of JD 1. The shareholders and directors of this sort of company are only liable to a certain extent. It is pretty simple to create this type of entity.
Public Limited Company
A Jordanian public limited company is the same as a joint-stock company that trades on the stock exchange. Only one shareholder is necessary to form this sort of organization. Aside from that, a previous agreement with the company is required. A Jordan Public Limited business must have a paid-up capital of at least USD 100,000. The shareholders and directors of this type of business are only liable to a certain extent.
Branch office
The foreign parent business’s branch office in Jordan is an extension of the foreign parent company. The parent firm is responsible for the branch office’s liabilities. It is legal for a branch office in Jordan to engage in profit-making operations. This type of business would be required to file annual reports. For this sort of corporation to be formed, the foreign parent company must select a Jordan representative. In addition, the foreign parent business must demonstrate that local operations will be conducted in Jordan. The Companies Registrar must receive audited financial statements.
Offshore Company
A Jordan offshore firm would be created solely to execute contracts with companies based outside of Jordan. Only a basic lease agreement is necessary to create this type of organization. These businesses would be exempt from both corporate and payroll taxes. Such businesses must, however, produce annual financial accounts. If an investor wishes to construct an offshore corporation, he can register a business in Jordan.
Representative Office
A Jordanian representative office serves as an extension of the international parent corporation. The parent firm is responsible for the representative office’s obligation. A representative office is not permitted to engage in any commercial operations. The representative office can only carry out marketing and promotional operations for the overseas parent firm.
Minimum Eligibility Criteria for Company Registration in Jordan
For company registration in Jordan, the following criteria must be met:
Minimum Shareholders
Company registration applicants must appoint a minimum number of shareholders. For example, an LLC can only have one stakeholder. As a result, the application must meet the minimum shareholder requirement.
Minimum Directors
In addition, an applicant must meet the requirements for corporate directors. In Jordan, an LLC must have at least one director. This is the bare minimum legal requirement for registering a business in Jordan.
Representative
To establish a branch office or representative office in Jordan, a foreign parent firm must select a representative. The foreign corporation must demonstrate that it operates in the United States.
Adhere to Companies Law No. 22 of 1997.
An applicant intending to create a company in Jordan must comply with “The Companies Law No.22 of 1997.”
