If you are planning to register a foreign company in Jordan, it is essential to understand the legal requirements, procedures, and options available. This guide will walk you through everything you need to know to establish your business in Jordan legally and efficiently.
1. What is a Foreign Company in Jordan?
A foreign company is a company incorporated outside Jordan that intends to conduct business or invest in Jordan. This does not refer to companies fully owned by foreigners that are registered locally, but specifically to companies established abroad seeking to operate within the Jordanian market.
2. Types of Foreign Companies Allowed in Jordan
Foreign companies can operate in Jordan after registration according to the Jordanian Companies Law, including:
- Branch Office:
A branch allows a foreign company to operate under its international name in Jordan. The branch’s liability is extended to the parent company. It can conduct commercial activities and sign contracts. - Representative Office:
A representative office can only promote the parent company, conduct market research, and handle non-commercial activities. It cannot perform direct commercial transactions. - Joint Venture or Subsidiary:
A foreign company may partner with Jordanian investors to create a new locally registered company, which limits liability and ensures compliance with Jordanian corporate law.
3. Requirements for Registering a Foreign Company in Jordan
To register a foreign company, the following are required:
- Certified copies of the company’s Articles of Association and Memorandum of Association.
- Certificate of Incorporation from the parent company’s home country.
- Appointment of a legal representative in Jordan who is responsible before Jordanian authorities.
- Opening a corporate bank account in Jordan.
- Compliance with Jordanian tax laws and social security regulations if employing staff locally.
4. Step-by-Step Process to Register a Foreign Company in Jordan
Step 1: Obtain Approval from the Ministry of Industry, Trade, and Supply
Submit a registration application along with all required documents, including the parent company’s incorporation certificate and Articles of Association.
Step 2: Register with the Companies Control Department
After approval, the foreign company is registered as a foreign company in Jordan to obtain an official commercial registration number.
Step 3: Open a Corporate Bank Account
Opening a bank account in Jordan is mandatory for all financial and commercial transactions.
Step 4: Register for Tax and Social Security
The company must register with the Income and Sales Tax Department and the Social Security Corporation if hiring employees in Jordan.
5. Benefits of Registering a Foreign Company in Jordan
- Access to Jordanian and regional markets easily.
- Legal recognition ensures protection and stability under Jordanian law.
- Potential tax incentives in certain investment sectors.
- Minimizes legal risks by complying with Jordanian corporate and commercial laws.
6. Key Tips Before Registering
- Conduct thorough market research and competitive analysis.
- Choose the most suitable company structure based on your business type.
- Comply with all legal and regulatory requirements to avoid penalties.
- Work with a Jordanian corporate lawyer to ensure smooth registration and compliance.
Looking to register a foreign company in Jordan? Our law firm specializes in foreign company registration, branch offices, and corporate compliance. Get in touch today to get professional advice and start your business journey in Jordan.