Choosing the right company type is one of the most important legal and business decisions for any entrepreneur in Jordan. Each company structure has different requirements, levels of liability, tax implications, and management rules as defined under the Jordanian Companies Law No. 22 of 1997 and its amendments.
This guide provides a clear and practical explanation of the main types of companies in Jordan, along with the key differences to help business owners, investors, and professionals make informed decisions.
1. General Partnership (شركة التضامن)
A General Partnership is formed between two or more partners who jointly manage the business. All partners are personally and jointly liable for the company’s debts and obligations.
Key Features:
- Liability extends to partners’ personal assets.
- High level of trust between partners.
- Suitable for small, family-run, or traditional businesses.
Best For:
Businesses where partners are actively involved in daily operations.
2. Limited Partnership (شركة التوصية البسيطة)
This structure includes two categories of partners:
- General Partners – fully liable and authorized to manage the company.
- Limited Partners – liable only up to their capital contribution and do not participate in management.
Key Features:
- Enables investors to contribute without managerial involvement.
- Adds flexibility in raising capital.
Best For:
Projects that require investors who prefer limited liability.
3. Limited Liability Company – LLC (الشركة ذات المسؤولية المحدودة)
The most common type of company in Jordan.
An LLC may consist of one or more shareholders, and their liability is limited to their share capital.
Key Features:
- Personal assets of shareholders are protected.
- Minimum share capital requirements are low.
- Widely used for trade, services, and startups.
- Transfer of shares is regulated and requires approval from other shareholders.
Best For:
Entrepreneurs, small and medium-sized businesses, and investors seeking a secure legal structure.
4. Private Shareholding Company (الشركة المساهمة الخاصة)
A Private Shareholding Company (PSC) is formed by one or more persons, and its capital is divided into shares that are not publicly traded.
Key Features:
- Suitable for medium and large investments.
- Easier to attract investors compared to LLCs.
- Flexible share structure and ability to issue different classes of shares.
Best For:
Growing companies that plan to expand or attract strategic investors.
5. Public Shareholding Company (الشركة المساهمة العامة)
A Public Shareholding Company (PSC) is the largest corporate structure in Jordan. Its shares are publicly traded on the Amman Stock Exchange.
Key Features:
- High level of transparency and government regulation.
- Strong ability to raise capital from the public.
- Requires a Board of Directors and strict financial disclosures.
Best For:
Large corporations, industrial projects, and companies seeking public investment.
6. Non-Operating Foreign Company (الشركة الأجنبية غير العاملة)
A foreign company registered in Jordan without conducting business inside Jordan.
Usually established for representing the parent company or managing regional operations.
Key Features:
- Not allowed to carry out commercial activities in Jordan.
- Registration mainly for administrative or representational purposes.
7. Operating Foreign Company (الشركة الأجنبية العاملة)
A foreign company that is legally authorized to operate and generate income in Jordan.
Key Features:
- Must obtain licenses according to the nature of activity (e.g., contracting, consulting).
- Must comply with Jordanian tax and labor laws.
Best For:
International companies entering the Jordanian market.
8. Holding Company (الشركة القابضة)
A Holding Company manages investments by owning shares or interests in other companies without practicing commercial activities itself.
Key Features:
- Used to control subsidiaries and manage risk.
- Can establish LLCs and PSCs as subsidiaries.
- Useful for restructuring and investment groups.
Best For:
Corporate groups, investors with multiple projects, and expansion strategies.
9. Joint Venture (المشاريع المشتركة)
A Joint Venture is a partnership formed between two or more companies for a specific project and a limited duration. It does not have an independent legal personality.
Key Features:
- Flexible contractual arrangement.
- Common in major construction and development projects.
Best For:
Companies cooperating to execute a single large project.
Conclusion
Understanding the types of companies in Jordan is essential for choosing the right legal structure. Each company type offers different levels of liability, governance, and financial requirements. Whether you are launching a small startup, expanding your business, or bringing a foreign company to Jordan, selecting the correct corporate form ensures legal protection and operational efficiency.
If you need help choosing the right structure or registering a company, a legal consultation can save time, reduce risk, and ensure full compliance with Jordanian law