Doing Business in Jordan
Practical legal guidance for foreign investors and companies entering or growing in the Jordanian market: company registration at the Companies Control Department, free zones and development areas, hiring and employment, and the common mistakes to avoid. Each guide is grounded in the governing Jordanian statute, the Companies Law No. 22 of 1997 and the Investment Environment Law No. 21 of 2022.
Written for decision-makers, entrepreneurs, and in-house counsel building a presence in Jordan.
Sound counsel begins with the text of the law. Every insight we publish is grounded in the governing Jordanian statute, and revised as the law changes.
The Editorial Standard, Abdullah & PartnersRelated Reading
Longer-form articles on investing and operating in Jordan, revised as the law changes.
The Register of Governing Law
Companies Law No. 22 / 1997Where do foreign investors register a company in Jordan?
Foreign investors register their company at the Companies Control Department, which sits under the Ministry of Industry, Trade and Supply. Registration is governed by the Companies Law No. 22 of 1997 and its amendments. The applicant submits identification and the company's constitutional documents, and the Department also reviews the investment against foreign-ownership and sector rules before incorporation.
Investment Environment Law No. 21 / 2022Can a foreign investor own 100% of a Jordanian company?
In many sectors a foreign investor may own up to 100% of a Jordanian company. Ownership is subject to the regulation on non-Jordanian investment, which restricts or caps a number of sectors and reserves some activities for Jordanian participation. The applicable thresholds are confirmed at registration, under the framework of the Investment Environment Law No. 21 of 2022.
Investment Environment Law No. 21 / 2022Do free zones and development zones in Jordan offer tax incentives?
Yes. Jordan's free zones and development zones offer customs and tax incentives under the Investment Environment Law No. 21 of 2022, which has applied since January 2023. The incentives are granted on defined criteria, such as the sector, the region, and the number of Jordanian jobs created, rather than automatically, so the benefit depends on the specific project.
Social Security Law No. 1 / 2014Must employers in Jordan register employees for social security?
Yes. Every employer must register its employees with the Social Security Corporation under the Social Security Law No. 1 of 2014 and its amendments. The obligation covers employees regardless of nationality or contract type. Contributions are shared between the employer and the employee and are remitted to the Corporation each month.
Companies Law No. 22 / 1997Which law governs companies in Jordan?
Companies in Jordan are governed primarily by the Companies Law No. 22 of 1997 and its amendments, administered by the Companies Control Department. It sets out the recognised company forms, including the limited liability company and the private and public shareholding company, and the rules for registration, governance, and dissolution.
Labour Law No. 8 / 1996Does Jordanian labour law apply when hiring employees?
Yes. Hiring in Jordan is governed by the Labour Law No. 8 of 1996 and its amendments, which regulates employment contracts, probation, working hours, notice periods, and termination. It applies alongside the social security registration duty under the Social Security Law No. 1 of 2014, so employers should plan for both when they hire.
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Abdullah & Partners
Abdullah & Partners is a law firm in Jordan, based in Amman, providing legal services in accordance with the laws of Jordan, the Jordanian Bar Association Law, and international conventions in force.
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