Foreign investors can register a company in Jordan through the Companies Control Department at the Ministry of Industry, Trade and Supply, under the Companies Law No. 22 of 1997 and its amendments. The time required depends on the entity type and whether sector-specific licences are needed. The choice of corporate vehicle and the preparation of the correct documents at the outset affect the time and cost of the process.
Choosing an Entity Type
Jordanian law offers several corporate structures available to foreign investors. The three most common are:
- Limited Liability Company (LLC). A common choice for small and mid-sized ventures. An LLC may be formed with a single shareholder, subject to the approval of the Companies Registrar, and does not require a board of directors. Under Article 54 of the Companies Law No. 22 of 1997, its capital must not be less than JOD 30,000, divided into shares of at least one Dinar each; regulated activities, and the rules on non-Jordanian investment, can require a higher contribution. Shareholders' liability is limited to their capital contributions.
- Private Shareholding Company (PSC). Suitable for larger projects or those anticipating multiple investors. A PSC is formed of two or more shareholders (the Minister may permit a single shareholder), and under Article 66 bis of the Companies Law its subscribed capital must not be less than JOD 50,000. It is managed by a board of directors whose composition is set out in its memorandum and articles of association. It issues shares that can be transferred, subject to any restrictions in the memorandum of association.
- Branch of a Foreign Company. A branch is not a separate legal entity; it is an extension of the parent company, which bears full liability for its obligations. Registration requires a resolution from the parent company's board, a certificate of incorporation legalised by consular legalisation, and appointment of a local representative. Branches are common for companies executing specific contracts or projects in Jordan.
The Registration Process
While specific steps may vary depending on the entity type and sector, the general process follows these stages:
- Name reservation. Apply to the Companies Control Department (CCD) to reserve a unique company name. The name must be in Arabic, though an English translation is registered alongside it. Name reservation is valid for a limited period.
- Draft the memorandum of association. The memorandum (and articles of association for a PSC) must be prepared in Arabic and notarised. It sets out the company's objects, capital, shareholder rights, and management structure.
- Deposit the capital. Open a temporary bank account in Jordan and deposit the required share capital. The bank issues a certificate confirming the deposit, which must be submitted with the registration application.
- Submit the application. File the memorandum of association, capital deposit certificate, shareholder identification documents, and any required sector-specific approvals with the CCD. Foreign shareholders must provide copies of their passports legalised through the consular chain or, if corporate, their certificates of incorporation and board resolutions, each legalised and translated into Arabic.
- Obtain the registration certificate. Once the CCD approves the application, it issues a certificate of registration and a company number. The company is then published in the Official Gazette.
- Post-registration steps. Register with the Income and Sales Tax Department, the Social Security Corporation, and any relevant sector regulator. Obtain a municipal vocational licence from the Greater Amman Municipality (or the relevant municipality).
Sector-Specific Licences
Certain activities require prior approval from a sector regulator before or alongside CCD registration. Examples include:
- Banking and financial services, Central Bank of Jordan
- Insurance, Central Bank of Jordan (insurance supervision was transferred to the Central Bank of Jordan in 2021 under the Insurance Business Regulation Law No. 12 of 2021)
- Telecommunications, Telecommunications Regulatory Commission
- Healthcare, Ministry of Health
- Education, Ministry of Education or Ministry of Higher Education
- Tourism, Ministry of Tourism and Antiquities
Failing to identify the correct sector licence early is one of the most common causes of registration delays.
Capital Requirements
Minimum capital depends on the entity type. Under the Companies Law No. 22 of 1997, a limited liability company requires capital of at least JOD 30,000 (Article 54) and a private shareholding company at least JOD 50,000 (Article 66 bis). Non-Jordanian investors may also be subject to a minimum contribution under the rules on non-Jordanian investment, depending on the activity and on any incentives sought under the Investment Environment Law No. 21 of 2022. Technology, financial services, and construction companies face higher thresholds. Companies established in development zones or free zones may have different capital requirements set by the relevant zone authority.
Documents Required
- Passports of all individual shareholders (consular-legalised copies for foreign nationals)
- Certificate of incorporation and good standing of any corporate shareholder (consular-legalised and translated into Arabic)
- Board resolution of any corporate shareholder authorising the investment
- Power of attorney if the investor will not appear in person (notarised and consular-legalised)
- Memorandum and articles of association (drafted in Arabic)
- Capital deposit certificate from a Jordanian bank
- Lease agreement or proof of registered office address
Typical Timeline
With all documents prepared and no sector-specific complications, registration of an LLC generally takes a few weeks. A PSC or branch registration may take longer because of the additional documentation required, and any sector-specific approval adds further time depending on the regulator involved. Consular legalisation of foreign documents should be started early, since it is often the slowest step.
Common Mistakes to Avoid
- Choosing the wrong entity type. An LLC is simpler but may not suit every project. Selecting a branch when an LLC would be more tax-efficient, or vice versa, can create long-term structural problems.
- Incomplete legalisation or translation. Jordan is not a party to the Hague Apostille Convention, so an apostille is not accepted on its own. Documents issued abroad must be legalised through the consular chain, that is, certified in the country of origin, then by the Jordanian embassy or consulate, then by the Jordanian Ministry of Foreign Affairs, and translated into Arabic by a certified translator.
- Ignoring post-registration obligations. Many investors complete CCD registration but delay tax registration, social security enrolment, or municipal licensing, which can result in fines.
- Underestimating sector restrictions. Some sectors have foreign ownership caps or require a Jordanian partner. Confirming these restrictions before drafting the memorandum of association is essential.
When to Speak With a Lawyer
Company formation in Jordan is more orderly when the groundwork is completed correctly. Investors who select the wrong entity type, miss a sector licence, or draft an inadequate shareholder agreement may face costly restructuring later. A lawyer practising in Jordanian corporate and commercial law and foreign investment can advise on entity selection, prepare the constitutional documents, coordinate with regulators, and address compliance obligations.
Further information on the firm's work in this area is available from Foreign Investment and Abdullah & Partners.
Related insights:
