Whether launching a new venture in Jordan or reviewing existing operations, legal compliance is not a one-time event. This checklist walks through the ten areas that Jordanian regulators scrutinise most closely in 2026, providing a practical framework to audit a business position and close any gaps before those gaps become liabilities.
1. Company Registration and Annual Renewal
Every business entity in Jordan must be registered with the Companies Control Department (CCD) under the Companies Law No. 22 of 1997. The most common vehicles are the limited liability company (LLC), the private shareholding company, and branches of foreign entities. Each has different capital requirements, governance rules, and reporting obligations.
- Confirm the company registration is current and that the most recent annual return has been filed with the CCD.
- Verify that the memorandum of association accurately reflects the company's current share capital, partners, and activities.
- Where the entity operates through a branch, ensure the head-office resolution and power of attorney are valid and notarised.
- Check that any amendments to the articles (changes in managers, capital increases, activity additions) have been formally registered.
- Renew the commercial registration with the Ministry of Industry, Trade and Supply (MoITS) before expiry.
Failure to keep registrations current can result in fines, the inability to enter into enforceable contracts, and difficulties accessing the banking system. For detailed guidance on structuring the entity, see our Corporate & Commercial practice.
2. Trade Licences and Sector-Specific Permits
Beyond the general commercial registration, most business activities require a vocational licence from the relevant municipality (typically the Greater Amman Municipality or the applicable governorate). Certain sectors require additional licences or approvals.
- Obtain or renew the municipal vocational licence annually.
- Where the business operates in a regulated sector, such as banking, insurance, telecommunications, healthcare, education, or food services, confirm that valid sector-specific permits are held from the relevant regulator (the Central Bank of Jordan, which supervises both banking and insurance, the Telecommunications Regulatory Commission, and others).
- For foreign investment projects, verify that the activity is registered with the Ministry of Investment and that the required investment registration certificate is held. See our Foreign Investment guide.
- Where goods are imported or exported, ensure the customs broker authorisation and any product-specific import permits (e.g., JFDA for pharmaceuticals and food, JSMO for standards compliance) are up to date.
3. Labour Law Compliance
Jordan's Labour Law No. 8 of 1996 (as amended) governs the employment relationship, and the Ministry of Labour actively enforces its requirements. Non-compliance carries fines and can result in the closure of a business. For more on employment matters, visit our Labour & Employment practice area.
- Ensure every employee has a written employment contract that complies with the Labour Law's mandatory provisions, including job description, salary, working hours, and notice periods.
- Verify that the workforce ratio of Jordanian to non-Jordanian employees meets the applicable Jordanisation quota for the sector.
- Confirm that every foreign employee holds a valid work permit issued by the Ministry of Labour before commencing work.
- Review the internal policies on working hours (maximum 48 hours per week), overtime compensation (125% for daytime, 150% for night/holidays), annual leave (minimum 14 days, rising to 21 after five years), sick leave, and maternity leave (10 weeks paid).
- Ensure an anti-harassment policy is in place and that the workplace complies with occupational health and safety standards.
- Where the business employs ten workers or more, confirm that internal work regulations have been drafted, posted, and approved by the Ministry of Labour (Article 55 of the Labour Law).
4. Social Security Registration and Contributions
The Social Security Corporation (SSC), under the Social Security Law No. 1 of 2014, requires every employer to register itself and all of its employees. Contributions are mandatory and cover old-age pensions, disability, death benefits, work injuries, maternity, and unemployment insurance.
- Confirm that every employee, Jordanian and non-Jordanian, is registered with the SSC from the first day of employment.
- Verify that monthly contributions are calculated correctly: the employer's share is currently 14.25% and the employee's share is 7.5% of gross salary (subject to a ceiling).
- File monthly contribution declarations on time to avoid penalties and interest.
- If the SSC has issued any inspection reports or deficiency notices, address them promptly.
5. Tax Obligations
Jordan's Income Tax Law No. 34 of 2014 (as amended by Law No. 38 of 2018) and the General Sales Tax Law No. 6 of 1994 impose significant obligations on businesses. The Income Tax and Sales Tax Department (ISTD) has modernised its audit and enforcement capabilities. For a deeper look, see our Taxation practice area.
- Income tax: File the annual income tax return by the end of April following the tax year. The standard corporate rate is 20%, with higher rates for banks (35%), telecommunications (24%), and certain other sectors.
- General Sales Tax (GST): Where annual turnover exceeds the registration threshold, which is JOD 30,000 for service providers and JOD 75,000 for suppliers of goods, the business must register for GST, charge the applicable rate (standard 16%), file monthly returns, and remit the tax.
- Withholding tax: Verify that tax is being withheld and remitted on payments to non-residents (royalties, management fees, interest, dividends) at the rates prescribed by law or reduced by applicable double tax treaties.
- Transfer pricing: Where the business transacts with related parties, maintain transfer pricing documentation that demonstrates arm's-length pricing, in line with the ISTD's guidelines.
- Advance tax payments: Companies must make advance income tax payments in instalments based on the prior year's liability or estimated current-year income, in the cases and on the dates set by the Income Tax Law.
- Retain all accounting records, invoices, and supporting documents for at least four years, as required by Article 23 of the Income Tax Law No. 34 of 2014. The four-year period runs from the latest of the end of the tax period, the date the tax return is filed, or the date of notification of an administrative assessment; where a dispute is ongoing, records must be kept until it is finally resolved.
6. Intellectual Property Registration
Jordan has a well-developed intellectual property regime governed by the Trademarks Law No. 33 of 1952, the Patents Law No. 32 of 1999, the Copyright Law No. 22 of 1992, and the Industrial Designs and Models Law, among others. Registration is handled by the Industrial Property Protection Directorate (IPPD) and the National Library Department (for copyright).
- Register the trademarks in Jordan. A registration in the home country does not automatically protect the business interests here. Jordanian trademark registration is valid for ten years and renewable.
- Where patentable inventions exist, file patent applications promptly. Jordan operates on a first-to-file basis.
- Register industrial designs within twelve months of first disclosure.
- For software, literary works, and creative content, understand that copyright protection exists automatically but consider registration for evidentiary purposes.
- Include robust IP protection clauses in employment contracts and service agreements, particularly assignment and confidentiality provisions.
7. Data Protection and Privacy
Jordan's data protection framework has evolved significantly. The Personal Data Protection Law No. 24 of 2023, administered through the Ministry of Digital Economy and Entrepreneurship, imposes obligations on entities that collect, process, or store personal data. Enforcement is increasing, and penalties for non-compliance can be substantial.
- Map all personal data collected and processed, including customer data, employee data, and supplier data, and identify the legal basis for each processing activity.
- Implement a privacy policy that clearly discloses what data is collected, the purposes of collection, the retention period, and the rights of data subjects.
- Obtain explicit consent where required, particularly for sensitive personal data (health, religion, political opinions, biometric data).
- Implement appropriate technical and organisational security measures to protect personal data against unauthorised access, loss, or destruction.
- Where personal data is transferred outside Jordan, ensure a lawful basis exists for the cross-border transfer.
- Designate a data protection officer or responsible person if the processing activities meet the thresholds set by the regulator.
8. Anti-Money Laundering and Counter-Terrorism Financing
The Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021 applies not only to financial institutions but also to designated non-financial businesses and professions, including law firms, accountants, real estate agents, and dealers in precious metals.
- Conduct customer due diligence (CDD) before establishing any business relationship. For higher-risk customers, apply enhanced due diligence (EDD).
- Maintain records of identification documents and transaction records for at least five years after the business relationship ends.
- Train staff regularly on AML/CTF obligations and red-flag indicators.
- Appoint a compliance officer responsible for AML/CTF compliance and for filing suspicious transaction reports (STRs) with the Anti-Money Laundering and Counter Terrorist Financing Unit.
- Screen customers, beneficial owners, and transactions against applicable sanctions lists.
9. Contract Review and Dispute Resolution Clauses
Jordanian contract law is governed primarily by the Civil Code No. 43 of 1976, which follows the Egyptian model. While freedom of contract is the general principle, several mandatory rules override contractual provisions.
- Review all material contracts, including supply agreements, distribution agreements, leases, service contracts, and joint ventures, to ensure they are governed by the intended law and contain enforceable dispute resolution clauses.
- Where arbitration is selected, specify the arbitral institution (e.g., the Jordan International Arbitration Centre (JIAC), the Amman Chamber of Commerce, or the ICC), the seat, the number of arbitrators, and the language. Jordan's Arbitration Law No. 31 of 2001 is based on the UNCITRAL Model Law.
- For international contracts, consider whether Jordanian courts will enforce a foreign governing law clause and whether a foreign judgment or arbitral award can be recognised and enforced in Jordan.
- Include clear force majeure, termination, limitation of liability, and indemnification clauses.
- Ensure that agency and distribution agreements comply with the Trade Agencies Law No. 28 of 2001, which provides significant protections to local agents.
Our Litigation & Dispute Resolution team can review the dispute resolution framework.
10. Corporate Governance and Beneficial Ownership Transparency
Jordan has strengthened its corporate governance requirements in line with international standards. Companies are expected to maintain transparent ownership structures and proper governance frameworks.
- Maintain a register of beneficial owners as required by AML regulations and the CCD.
- For shareholding companies, ensure compliance with the Companies Law's requirements on board composition, meetings, financial reporting, and auditor appointment.
- File audited financial statements with the CCD within the deadlines specified by law.
- Where the entity is a publicly listed company, comply with the additional corporate governance instructions issued by the Jordan Securities Commission.
When to Speak With a Lawyer
This checklist provides a starting point, but every business has unique circumstances. A business should consult a lawyer when:
- A new entity is being established, an existing one is being restructured, or a new activity is being added to the registration.
- A regulator, such as the tax authority, SSC, Ministry of Labour, or CCD, has issued a notice requesting information or asserting a deficiency.
- A significant contract or joint venture is being concluded with a local or foreign partner.
- Hiring or termination decisions are being planned, particularly at scale.
- The business handles personal data and obligations under the data protection law are uncertain.
- A commercial dispute has arisen or is anticipated.
How Abdullah & Partners Can Help
The firm advises businesses of all sizes, from startups entering Jordan for the first time to established multinationals with long-standing operations. The team covers corporate and commercial law, foreign investment, labour and employment, taxation, intellectual property, data protection, and dispute resolution, and its work includes compliance audits, closing identified gaps, and ongoing advisory support.
For advice on a specific matter, you may contact the firm.
