Starting a Business in Jordan

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy’s per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2010.

No. Procedure Time to Complete Associated Costs
1 1 day JOD 800
2 Open b

compaExecute the company’s formation contract and the memorandum and articles of association.The ny’s formation contract and its memorandum and the articles of association may be executed either before an officer at the Companies Control Directorate (CCD), located at the Ministry of Industry and Trade (MIT), or before a notary public or a licensed Jordanian lawyer. If the documents are executed before the notary public, an additional fee of JOD 15 will apply. The additional fee may range from JOD 500 to JOD 1,500 if done before a licensed Jordanian lawyer.

Bank account; deposit 50% of the capital

1 day no charge
3 Register the company; obtain registration certificate, and file general assembly first meeting and board of directors’ minutes of meeting at the Ministry of Industry and Trade The promoter can complete the following formalities at the one-stop shop at the Company Registry/ Ministry of TRade and INdustry (albeit at different counters): company registration, tax registration (including obtaining a company tax number for VAT and income tax), registration with the Chamber of Commerce or Chamber of Industry. In addition, the municipality of Amman maintains a counter for license renewal (though the initial license must still be obtained at the municipality).Upon payment of relevant fees, filing for company registration and obtaining the registration certificate is done at the one the company registration at the newly established reception desk. 1 day JOD 10 (Filing Fee), + JOD 10 (Registration Certificate Fee), + 0.02% of Share Capital (Registration Fee), + JOD 15 (Fee For Publication in the Official Gazette)+ JOD 40 File general assembly first meeting and board of directors’ minutes of meeting
* 4 Register for corporate tax, salary withholding tax, and VAT The promoter can register for taxes at the one-stop shop counter at the Company Registry. The company receives a unique tax number. 1 day (simultaneous with previous procedure) no charge
* 5 Register with the chamber of industry or chamber of commerceThe company documents and the respective authorized signatories required to register with the Chamber of Industry or the Chamber of Commerce are:
– Rental contract.
– Formation contract.
– Registration certificate.
– Certificate of authorized signatories.
– Memorandum and articles of incorporation.Annual registration fees levied by the Chamber of Industry or the Chamber of Commerce depend on company capital.
1 day (simultaneous with previous procedure) JOD 164
6 Obtain a vocational license from the municipalityFirst, an application is filed with the following documents to obtain a vocational license from the municipality:
– planning location map (issued by greater Amman municipality, GAM).
– Occupancy permit (issued by GAM and usually obtained immediately by the landlord upon completing construction).
– A copy of the property deed (usually obtained from the landlord).Second, the GAM officer verifies that the location is situated in the right zoning area and ensures that no property taxes or fees are due. These procedures are performed in the same building. Third, a municipal officer sets up an appointment to inspect the premises for conformance with set requirements. The time before the inspection may vary. Fourth, the property inspection is conducted.Fifth, if the premises are deemed in conformity with the requirements, the file is referred to the competent vocational licenses division. At that point, the following documents are required: (a) the company’s certificate of registration; (b) a certificate of the company’s authorized signatories; (c) the memorandum and articles association; (d) a certificate of registration with either the chamber of commerce or industry; (e) a lease contract (stamped by the GAM); (f) a planning location map (issued by the GAM); and (g) an occupation permit (issued by the GAM).Sixth, for certain occupations, a representative of the Ministry of Health may conduct a health inspection at the company headquarters.Seventh, if the company’s premises is 150 sq. m. or more, or in certain professions requiring civil defense measures, the GAM sends a letter by fax to the Civil Defense Directorate. If all relevant details required to conduct an inspection are included, and if the Directorate does not respond or conduct an inspection within 4 days, the GAM grants the applicant the required vocational license with a caveat: the applicant must agree, in writing, that if the Civil Defense Department approval is not granted, the vocational license renewal may be declined in a subsequent year.
8 days JOD 200
* 7 Inspection by municipality on safety and health 1 day (simultaneously with previous procedure) no charge
* 8 Register for social security Every business must register with the social security authorities and submit, on a monthly basis, the social security contributions for its employees.Related StoriesMake Money the Easy Way
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