Jordan

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

The Jordanian government is particularly keen on encouraging foreign investment. Indeed, the law of April 1987 based on the encouragement of investments confirms this optimism. Indeed, law provides incentives such as tariff or tax exemptions, among others. To get more details about these incentives, investors can contact the Ministry of Industry and Trade, as well as the Jordan Investment Board (JIB).

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Private shareholding company is a joint-stock company with limited liability. Minimum 2. Maximum 50 shareholders. Minimum JOD 30,000.
50% must be subscribed at the constitution and 50% within two years.
Liability is limited to the amount contributed in the capital. 0.1% of the capital and 0.3% for stamp duties. Yes
Public shareholding company is the equivalent of the Public Limited Company. Minimum 2. No maximum Minimum JOD 500,000.
25% must be subscribed at the constitution and 75% within 4 years.
Liability is limited to the amount contributed. 0.1% of the capital and 0.3% for stamp duties. Yes
Limited partnership No minimum. Maximum 20 shareholders. No minimum capital. One of the partners must have a liability for the amount he contributed in the capital. JOD 250 if the capital of the parent company does not exceed JOD 1 million, otherwise expenses add up to JOD 500.
General partnership From 2 to 20 partners No minimum capital. Partners' liability is several and unlimited for the debts of the company. JOD 250 if the capital of the parent company does not exceed JOD 1 million, otherwise expenses add up to JOD 500.

Registration and licensing procedures
Registration of a company is carried out with the Controller of Companies (Department of Industry and Trade).

Legal framework
The Law n°11 of 1987 called "Companies law", regulates the legal framework of foreign investments in Jordan.

Foreign exchange control
Currency exchange control has been liberalised. Repatriation of profits and capital is authorised provided that an authorization is delivered from the Department of Industry and the tax authorities.

Regulations concerning equity investment
A majority holding interest in the capital of a local company is legal in Jordan, except in certain sectors where foreign interest cannot exceed 49%.  


Foreign Direct Investment inflows in Jordan

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 436 651 1532 19/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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