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In Jordan, new businesses formation is guided by specific domestic legislation. The process is streamlined and has been simplified for entrepreneurs, under the Department of Companies of the Hashemite Kingdom of Jordan's Ministry of Industry, Trade and Supply. The main pieces of legislation governing business formation include the Companies Law, the Jordan Investment Law, and the Trade Marks Law.
Understanding legislation and knowing how to navigate legal requirements can be complex and time-consuming tasks. A lawyer can provide valuable guidance in interpreting the rules and regulations, assist with paperwork, ensure all legal obligations are met and protect your interests, thus ensuring your business complies with Jordanian law. In situations such as resolving disputes, negotiating contracts or understanding the taxation system, legal assistance becomes even more crucial.
The key pieces of Jordanian law relevant to new business formation include the Companies Law, and the Jordan Investment Law. The Companies Law sets out procedures for incorporating and managing a company, while the Jordan Investment Law provides benefits and incentives for both local and foreign investors. It is also important to note that according to Jordan's Companies Law, all foreign companies establishing a branch or representative office in Jordan must obtain a Foreign Company License from the Minister of Industry, Trade and Supply within one month from their registration with the Ministry.
Foreign entities can establish a presence in Jordan by forming a local company, a branch of their existing corporation or a representation office. Each of these options requires a different setup process and has different legal requirements.
The challenges could include understanding and complying with the local laws and regulations, dealing with bureaucratic processes, acquiring necessary permits, and understanding the local market conditions and business culture.
While foreign investors are generally welcome, they must acquire a Foreign Company License from the Ministry of Industry, Trade and Supply, and comply with special notification and capital requirements.
The Jordan Investment Law provides various tax incentives for companies operating in specific sectors or geographical areas.
The time it takes to form a new company in Jordan can vary widely depending on the type of company, but it generally ranges from 2 to 6 weeks.
For further assistance, businesses may refer to the Department of Companies website or the Jordan Investment Commission's website. Additional specialists like tax advisors and consultancy agencies may also provide valuable insights.
If you need legal assistance, it is advisable to engage a law firm that has experience in business formation in Jordan. They can guide you through the legal process, help you understand your rights and obligations, and ensure that your business is set up properly and legally.
