How to Start a Company in Jordan

The Companies Law No. 22 of 1997 and its amendments recognise several entity types. Choosing the right one is not a stylistic preference. It depends on the activity, the number and nationality of shareholders, the capital plan, and any form prescribed by a sectoral regulator. The right starting question is rarely “how do I register a company in Jordan.” It is usually some combination of: which legal form fits the business; whether foreign-ownership restrictions apply; whether the activity needs a licence; what happens after registration; and whether the company can actually open a bank account, hire staff, issue invoices, and operate.

The Investment Environment Law No. 21 of 2022 and its implementing regulations set the framework for non-Jordanian investment. Non-Jordanian investors may own a majority or 100% of a Jordanian company in most commercial, industrial, professional, agricultural, and service activities.

A defined list of activities is closed or capped to non-Jordanian ownership under Article 6 of the Investment Environment Law No. 21 of 2022 and its implementing regulations. The categories that recur in current regulation include certain security and investigation services, specified construction and quarrying activities, specified customs and trade-services activities, specified food production, trading and importing of weapons and fireworks, and certain transport and trade activities that are subject to maximum non-Jordanian-ownership caps. The current list is set out in the Investment Environment Regulation No. 7 of 2023 and may be amended. The current position for the specific activity should be confirmed before filing.

Investments in the ASEZ and Jordanian free zones may be subject to separate regimes and should be reviewed under the applicable zone rules.

Company registration with the Companies Control Department proceeds under the Companies Law and the CCD’s procedural instructions. For a clean LLC with two shareholders, ordinary commercial activity, and no sectoral licensing layer, the process usually moves through seven steps.

It helps to separate two timelines: the time to a CCD certificate, and the time to a company that can actually operate. For a clean LLC with two shareholders, ordinary commercial activity, and no sectoral licensing layer:

• CCD registration certificate: approximately three business days to two weeks once all documents are complete, depending on the activity and whether the shareholders are local or foreign.
• Municipal vocational licence: usually a further one to two weeks.
• Sectoral licence (regulated activities): variable, often four to twelve weeks depending on the regulator.
• Bank onboarding for foreign-owned companies: often a separate three to eight weeks, sometimes longer, depending on the bank and the activity.
• Work permits for non-Jordanian managers: run in parallel and depend on the Ministry of Labour route under the Labour Law and the current work-permit instructions for non-Jordanians.

For most foreign-owned companies, the practical “time to operating” therefore sits well beyond the CCD timeline. Treating the certificate date as the launch date is a common planning mistake. Government fees apply and are set by the current CCD fee schedule, varying by entity type and activity. Foreign branches and shareholding companies usually take longer to certificate because of the additional document legalisation and governance paperwork.

Many registration steps can be handled through a properly notarised and legalised power of attorney, prepared under the agency framework of the Civil Code No. 43 of 1976. A Jordanian lawyer holding such a power may attend the notary, submit the CCD file, and complete the tax, social security, and municipal-licence steps on behalf of foreign shareholders, who do not need to be physically present in Amman for those steps.

The power of attorney is usually prepared in advance, notarised in the shareholder’s home jurisdiction, then legalised through the Jordanian consulate or by apostille followed by Ministry of Foreign Affairs authentication, depending on the country. The exact route should be confirmed for each jurisdiction before signing.

Bank onboarding, sector approvals, and certain identity checks may still require additional procedures or, in some cases, the personal attendance of an authorised representative. The exact mix varies by bank and by sector and should be confirmed before relying on a fully remote launch plan.

A Jordanian company is a continuing legal entity, and its obligations run year after year. The most important recurring obligations usually include:

• Annual filing of financial statements and the company return with the CCD within the period set by the current Companies Law.
• Annual general meeting of shareholders or members.
• Beneficial-ownership filing and maintenance with the CCD under the Beneficial Ownership Register Regulation No. 62 of 2022, with prompt notification of changes.
• Periodic GST returns where the company is registered for GST, and the annual corporate income-tax return with the ISTD.
• Annual renewal of the municipal vocational licence.
• Maintenance of Arabic-language accounting records and supporting documents inside Jordan.
• Continuing SSC contribution filings for enrolled employees.
• Prompt CCD notification of any material change (shareholding, management, registered office, capital).

Sectoral regulators impose additional reporting obligations on regulated entities. Missing any of the above typically creates enforcement exposure and may delay or block later corporate actions, including share transfers, capital increases, and mergers.

Patterns that often surface in newly formed Jordanian companies:

Generic Articles of Association. Templates that work for one business may leave gaps on deadlock, exit, share transfer, and minority protection for another. The cost of fixing these after a disagreement crystallises is usually higher than getting them right at formation.

Mismatch between registered activity and actual activity. The activity field in the CCD registration governs licensing, tax classification, and permitted operations. A drift between the registered activity and the operating reality may create licence, GST classification, and sometimes regulatory issues on audit.

Commingling of personal and company funds. Treating the company account as an extension of the shareholder’s personal finances may erode the limited-liability separation in the right circumstances.

Unregistered employees or informal pay arrangements. Operating outside the SSC framework creates back-contribution exposure, penalties under the Labour Law No. 8 of 1996 and its amendments, and potential personal exposure for directors.

Missed CCD annual filings. Late filings accumulate penalties, lock the company out of certain corporate actions, and over time may lead to administrative strike-off.

Treating the certificate as the launch date. Banking, sectoral licensing, and work permits often extend the operational date well beyond the CCD certificate.

The corporate team advises on the appropriate company form, drafts the Articles of Association, opens the capital deposit account, files with the CCD, and handles the tax, Social Security, and municipal registrations. Sectoral licensing is coordinated where the activity is regulated. After incorporation, the firm assists with ongoing CCD compliance, board governance, contracts, and shareholding changes.

For enquiries regarding company formation in Jordan, contact us, or read the firm’s Corporate & Commercial and Foreign Investment practices.