Understanding the Limited Liability Company (LLC) in Jordan

Establishing a Limited Liability Company (LLC) in Jordan is one of the most popular choices for entrepreneurs and investors because it offers legal protection, operational flexibility, and low financial risk. Under the Jordanian Companies Law, the LLC structure protects partners from personal liability, allowing them to focus on business growth with confidence.

What is a Limited Liability Company (LLC)?

According to Article 53, an LLC in Jordan consists of one or more partners. The company has its own financial identity separate from its owners, meaning:

The company—not the owners—is responsible for debts and obligations.
Each partner is only liable up to the value of their share.

This makes LLCs ideal for small and medium businesses seeking legal protection and investment stability.

Key Legal Requirements for LLC Registration in Jordan

🔹 1. Capital Requirements — Article 54

Capital must be in Jordanian Dinar
Divided into equal shares
Minimum capital determined by regulation
Shares cannot be publicly offered

🔹 2. Company Name — Article 55

The LLC name must:

Reflect company purpose
Include “Limited Liability Company” or (L.L.C / ذ.م.م)
Show registration number and capital on documents

🔹 3. Registration Process — Article 57–59

Required documents include:

Articles of Association
Partner information
Capital structure
Business objectives

The Companies Controller reviews the file, approves it within 15 days, and issues the registration certificate once 50% of capital is deposited.

How LLCs Are Managed

Leadership Structure — Article 60

LLCs are managed by a:

Single director, or
Board of directors (2–7 members)

Directors have full authority to conduct business and sign legally binding contracts.

Ownership Transfer and Shares — Articles 72–74

Partners may transfer or sell shares to partners or external buyers, following legal procedures to protect business stability.

Profit Distribution & Accounting — Articles 62 & 70

LLCs must:

Prepare annual audited accounts
Submit financial statements to the Controller
Deduct 10% yearly profit as mandatory reserve

When Must an LLC Liquidate? — Article 75

If the company loses more than:

50% of capital → General Assembly must decide to continue or liquidate
75% of capital → Company must liquidate unless capital is increased

Why Entrepreneurs Choose LLCs in Jordan

An LLC gives business owners:

Legal protection for personal assets
Operational flexibility
Simple structure for profit and ownership
Clear legal framework under Jordanian law
Ideal for foreign and local investors

Conclusion

A Limited Liability Company (LLC) in Jordan is a powerful legal vehicle for entrepreneurs who want to protect their assets, attract investors, and operate within a secure corporate framework. With clear laws, defined partner responsibilities, and strong financial structure, the LLC model forms the foundation for business success in Jordan.

🔹 Whether you are starting a small business or expanding a large enterprise, the LLC structure offers stability, scalability, and legal clarity — backed by the Jordanian Companies La

Book Consultation With Our Corporate Lawyers in Jordan

phone: +962 0797725709

Emal; info@siratlaw.com

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