Best Corporate & Commercial Lawyers in Amman

About Corporate & Commercial Law in Amman, Hashemite Kingdom of Jordan

Corporate and commercial law in Amman, the capital city of Jordan, encompasses the legal framework governing how businesses are established, operated, regulated, and dissolved within the country. Jordan serves as a business hub in the Middle East, making Amman a strategic location for both foreign and domestic enterprises. The legal environment provides mechanisms for company formation, mergers and acquisitions, commercial contracts, foreign investment, intellectual property, and dispute resolution. These laws are deeply influenced by civil law traditions, but also cater to the dynamic needs of the modern business landscape, balancing local legal requirements with internationally recognized business practices.

Why You May Need a Lawyer

There are numerous situations where individuals and businesses may require the assistance of a corporate or commercial lawyer in Amman. Some common scenarios include:

• Establishing a new company, including registration and licensing requirements
• Drafting and negotiating commercial contracts or partnership agreements
• Ensuring compliance with regulatory frameworks and local business laws
• Facilitating mergers, acquisitions, or corporate restructuring
• Resolving commercial disputes and representing parties in litigation or arbitration
• Advising on intellectual property protections
• Managing labor and employment issues within a corporate setting
• Navigating foreign investment regulations and cross-border transactions
• Guiding proper dissolution or liquidation of companies
• Assisting with tax planning and compliance for businesses

Given the legal complexities and potential consequences of non-compliance, consulting a specialized lawyer provides vital protection and guidance throughout the business lifecycle.

Local Laws Overview

Corporate and commercial activities in Amman are primarily governed by several key pieces of legislation. These include the Companies Law, the Commercial Code, and regulations from government authorities such as the Ministry of Industry, Trade, and Supply. Key elements include:

• Company Formation: The Jordanian Companies Law outlines the procedures for establishing various company types, such as Limited Liability Companies (LLC), Public Shareholding Companies, and Branch Offices of foreign entities.
• Registration & Licensing: All businesses must be registered with the Companies Controller at the Ministry of Industry, Trade, and Supply and obtain the necessary permits for operation.
• Foreign Investment: Foreign investors are protected under the Investment Law, which specifies incentives and restrictions for foreign ownership depending on economic sectors.
• Commercial Contracts: The Commercial Code provides the legal basis for contract formation, enforcement, and dispute resolution.
• Employment: The Labor Law sets forth rules for the hiring, treatment, and termination of employees, including requirements for contracts and social security contributions.
• Dispute Resolution: Courts and arbitration centers in Amman handle commercial litigation, with alternative dispute resolution mechanisms often encouraged for foreign parties.
• Taxation: Businesses must comply with laws regarding income tax, sales tax, and customs duties.
• Intellectual Property: Trademarks, patents, and copyrights protection is governed by national legislation, complemented by Jordan's adherence to several international treaties.

Local regulations are subject to updates, so business owners should regularly seek legal advice.

Frequently Asked Questions

What are the most common types of business structures in Jordan?

The main business structures are Sole Proprietorships, Limited Liability Companies (LLCs), Private Shareholding Companies, Public Shareholding Companies, and Branch Offices for foreign companies.

Can a foreigner own a company in Jordan?

Foreigners can own companies in Jordan, but certain restrictions may apply to specific sectors. The Investment Law outlines which sectors are open for full foreign ownership and where limitations exist.

How long does it take to register a company in Amman?

The registration process timeframe depends on the company type. In most cases, it can take from one to several weeks, provided all documentation is in order.

Are there any minimum capital requirements to start a company?

Yes, minimum capital requirements vary depending on company structure. For example, an LLC generally requires a minimum capital of 1,000 Jordanian Dinars, but requirements for public companies are higher.

What are the essential documents needed for company formation?

Basic documents include identification of shareholders, articles of association, company by-laws, proof of address, and various forms as required by the Companies Controller.

How are commercial disputes resolved?

Commercial disputes can be resolved through litigation in the courts or alternative dispute resolution methods such as arbitration or mediation, as set out in contracts or by mutual agreement.

What are the main taxes businesses must pay?

Companies are subject to income tax, sales tax, and may also be liable for social security contributions and customs duties on imports.

Is it necessary to notarize contracts in Jordan?

While not all contracts must be notarized, certain types of agreements, such as property transfers or official company documents, may require notarization or official registration for validity.

Does Jordan recognize international arbitration awards?

Jordan is a party to the New York Convention, which allows for recognition and enforcement of international arbitration awards, subject to certain formalities.

What are the main regulatory authorities for businesses in Amman?

Key agencies include the Ministry of Industry, Trade, and Supply, the Companies Controller, the Social Security Corporation, the Income and Sales Tax Department, and sector-specific regulators.

Additional Resources

Several resources and organizations provide support and information for businesses and professionals involved in corporate and commercial matters in Amman. These include:

• Ministry of Industry, Trade, and Supply - responsible for company registration and regulatory oversight
• Jordan Investment Fund - guides foreign investment and incentive mechanisms
• Jordan Chamber of Commerce - offers business-related resources and networking opportunities
• Amman Stock Exchange - for public companies and securities information
• Jordanian Bar Association - maintains a registry of licensed lawyers
• Social Security Corporation - oversees employee social insurance matters
• Jordan Intellectual Property Association - for intellectual property rights guidance

Next Steps

If you are seeking legal advice or representation in corporate and commercial matters in Amman, begin by clearly defining your objectives and gathering all relevant information about your business or legal issue. Consult with a qualified lawyer who has expertise in corporate and commercial law in Jordan. Lawyers can help you understand your legal obligations, navigate regulatory processes, draft or review contracts, and represent you in disputes or government proceedings. It is recommended to schedule an initial consultation to discuss your needs and explore the best course of action tailored to your circumstances. Being proactive in seeking legal guidance can save time, reduce risks, and help ensure your business operates smoothly within the legal framework of Jordan.