Business Guide for Jordan

Here’s a practical guide from Enterprise Singapore on the nuts and bolts of setting up shop in Jordan.

Starting a business in Jordan

Business structure
Which business structure can I use?
There are a few business structures for you to choose from when doing business in Jordan.
General Partnership

This type of company is formed by at least two partners and a maximum of 20 partners. All of them must be over 18 years old and are jointly and severally liable to the business.

Limited Partnership

This company allows for a mix of general and limited partners. The number of partners can range from two to 20, and each of them must be at least 18 years old.

General partners are responsible for the day-to-day management of the company and do not have limited liability. Limited partners contribute only to the capital of the company but have no authority or involvement in the company’s operations. They are limited to their own shares in the company.

Limited Liability Company

This type of company has a more complex structure. While it is typically founded by two or more shareholders, a limited liability company can also be incorporated by a single owner – upon prior consent from the Companies’ Control Department in Jordan.

Private Shareholding Company

A private shareholding company are limited liability companies, whose stocks is offered, owned and trade privately.
How do I register my business?
Do ensure you have gotten the pre-approvals from the Jordan Ministry of Industry, Trade and Supply, and/or Companies Control Department prior to registering for your business.

Click here for more information.
Directors and shareholders

How many directors do I need to set up a company?
There must be at least one director for your company.

Do I need a minimum number of resident directors?
Foreign companies require at least one resident director.

Can a company by wholly-owned by foreigners? Do I need a minimum percentage of local shareholders?
Yes, most companies can be fully-owned by foreigners, except for certain industries (e.g. construction) where foreign entities may not have ownership in excess of 50%.
Share capital and capital contribution
What is the minimum share capital or investment capital I need to set up a company?

Limited Liability Company
The minimum capital required for this type of business is 1 dinar (US$1.4 or S$1.9).

Limited Partnership & General Partnership
The minimum capital required to register this type of business is 1,000 dinars (US$1,400 or S$1900).

Are there any restrictions on bringing capital out of Jordan?
There are no restrictions on capital transfers and repatriation of profits from Jordan.
Taxes
What is the current corporate tax rate?
The corporate tax rates vary depending on the industry or business activity your company operates in. According to the income tax law in Jordan, the corporate tax rates are:

Banks: 35%

Telecommunication, insurance and reinsurance, finance, financial intermediary and financial leasing, electricity generation, basic mining companies: 24%

Others: 20%

Other Industrial Companies: 16%

Click here for more information.

Are there any tax incentives for my company in Jordan?
There are tax incentives available for certain companies registered in development zones or free zone areas in Jordan.

Find out more here.

What are the withholding tax rates on interest, dividends and royalties?

Dividends: 0%

Interest: 10% for non-residents

Royalties: 10% for non-residents

Find out more here.

Do I need to pay tax when I send dividends back to Singapore?
No, there is an exemption from taxes.

Any value-added tax or goods & services tax in Jordan? If so, what is the current rate?
It is at 16%.
Human resource
What basic employment benefits must I give to my employees? ²

Employment Contract
This is an agreement between you and your employee on the terms and conditions of employment e.g. period or employment, hours, location and scope of work, worker’s wages and benefits etc. Written contracts are highly recommended. It should be in English and Arabic, with copies provided for both you and your employee.

Annual Leave
Employees are entitled to at least 14 days of fully paid annual leave per each year of service. The leave will be extended to 21 days if he/she has been in employment with the same employer for five consecutive years.

Sick Leave
Employees are entitled to 14 days of paid leave each year for medical reasons, if they provide a report by a medical practitioner approved by your company. The leave may be extended for another 14 days if employee is hospitalised or based on report from an approved medical practitioner.

Maternity Leave
Female employees are entitled to ten weeks of fully paid maternity leave, six weeks of which must occur after delivery.

Do I need to pay taxes or social security contributions for employees?
As an employer, you will need to contribute 14.25% of an employee’s salary, while your employee will contribute 7.5%.³

If I send a Singaporean employee to work in Jordan for less than a year, does my employee need a work pass?
Yes, you will need to apply for a work permit for your Singaporean employee with the Ministry of Labour in Jordan. The requirements vary depending on whether the worker will be employed in a Qualified Industrial Zone.

Must I have a physical office in Jordan?
Yes, you must have a physical office in Jordan.

² www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158905/lang--en/index.htm; www.shrm.org/topics-tools/employment-law-compliance/jordan-labor-law-amended
³ Jordan - Corporate - Taxes on corporate income

Please note all information is based on online sources, and is provided in good faith for guidance and reference purposes only. It is correct as of June 2022.

Starting a business in Jordan

Business Guide for Jordan

Starting a business in Jordan