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Aqaba is governed by Jordanian national company and commercial law, together with a distinct regulatory framework administered by the Aqaba Special Economic Zone Authority - ASEZA. ASEZA provides a streamlined regulatory environment and a set of incentives designed to attract investment, including simplified licensing, customs facilitation, and preferential fiscal arrangements for activities inside the zone. New business formation in Aqaba therefore requires compliance both with Jordanian national laws - including the Companies Law, commercial and tax rules - and with ASEZA rules where the activity or location falls inside the special economic zone.
Business owners setting up in Aqaba will typically interact with several authorities - the Companies Controller, ASEZA, the Income and Sales Tax Department, the Social Security Corporation, and local directorates handling labor, land and municipal matters. Understanding which rules apply depends on the chosen business structure, the planned commercial activity, ownership (Jordanian or foreign), and whether the company will operate within ASEZA boundaries.
Forming a business involves legal choices that have long-term consequences. A lawyer helps ensure that formation steps are completed correctly and that legal and commercial risk are minimized. Common situations where legal help is needed include:
- Choosing the appropriate legal structure and drafting the associated constitutional documents so ownership, control and liability are properly allocated.
- Securing permits and approvals from ASEZA and other regulators, especially for regulated activities such as tourism, industry, transportation, or customs-related operations.
- Structuring foreign investment and ownership to benefit from ASEZA incentives while complying with foreign ownership rules and residency and work-permit requirements for expatriate staff.
- Drafting and negotiating commercial contracts, leases, shareholder agreements, employment agreements and supplier arrangements to reduce future disputes.
- Handling corporate governance, compliance with the Companies Law, corporate filings and changes in company structure or capital.
- Advising on tax registration, VAT, customs duties, and any tax incentive applications; assisting with Social Security registration and labor law compliance.
- Preparing for financing, local or cross-border investment, mergers, acquisitions or disputes that may require litigation or alternative dispute resolution.
Key legal and regulatory aspects to consider when forming a business in Aqaba include the following.
Companies and commercial registration - Companies are formed and registered under Jordan's Companies Law and administered through the Companies Controller at the Ministry of Industry, Trade and Supply. Business names, articles of association, ownership details and registration fees must be submitted and approved. Company types commonly used include sole proprietorships, general partnerships, limited partnerships, limited liability companies (LLCs), joint stock companies, and branches or representative offices of foreign companies.
Aqaba Special Economic Zone rules - ASEZA operates under its own law and regulations. Entities located inside ASEZA may qualify for special incentives, streamlined licensing, relaxed customs procedures and specific land-leasing arrangements. ASEZA approval is required for land use, construction, and certain activity licenses within the zone.
Foreign investment - Foreign investors can operate in Jordan and in ASEZA, often with options for full foreign ownership depending on the sector and location. Some sensitive sectors may require Jordanian participation or special approvals. Visa, residency and work-permit rules apply for foreign managers and employees.
Tax and customs - Businesses must register for a tax identification number and comply with income and sales tax laws. ASEZA companies may be eligible for tax exemptions or reduced rates in accordance with ASEZA rules and national tax law. Customs rules and procedures are important for import-export activities and may be simplified inside the special economic zone.
Labor and social security - Employment relationships are governed by Jordan's Labor Law and relevant ministerial regulations. Employers must register employees with the Social Security Corporation and comply with minimum labor standards, social benefits, termination rules and health and safety obligations.
Regulated sectors and permits - Certain activities require sector specific licenses or approvals - for example tourism and hospitality, manufacturing for export, transportation, environmental permits, and food or health-regulated businesses. Environmental and municipal approvals may be necessary for construction and operations.
Property and land - Land ownership and leasing in Aqaba, especially within ASEZA, follow specific rules. Long-term leases are commonly used for investors, and land due diligence is essential to confirm permitted uses, zoning, and title or lease conditions.
Dispute resolution - Jordanian courts handle commercial disputes, and many investors use arbitration clauses for international commercial contracts. ASEZA also has dispute resolution mechanisms for matters inside the zone. Legal advice is important when drafting dispute resolution clauses to ensure enforceability.
You can form typical Jordanian company forms such as a sole proprietorship, general partnership, limited partnership, limited liability company (LLC), and joint stock company. Foreign companies may also open a branch or representative office. If operating inside ASEZA, there are additional entity options and incentives; choose the structure that best fits your liability, governance and capital needs.
Not necessarily. Foreign investors can own businesses in Jordan and in ASEZA, and ASEZA often permits full foreign ownership for activities within the zone. Some strategic or restricted sectors may require partnership with Jordanian nationals or specific approvals. Verify the rules for your sector and location before forming the entity.
Timeframes vary depending on the company type, whether ASEZA approvals are required, and completeness of documentation. Simple registrations without special approvals can take a few days to several weeks. If permits, land allocation or foreign investment approvals are needed, the process may take longer. Using a lawyer or agent familiar with local procedures can speed up the process.
Typically required documents include proof of identity for founders (IDs or passports), the company articles of association or memorandum, a lease or address for the company, bank certificates for capital deposit where required, power of attorney for representatives if applicable, and any sector-specific approvals. ASEZA may require additional documents for activities in the special zone.
ASEZA offers benefits such as customs facilitation, possible tax incentives and streamlined licensing for approved activities inside the zone. Qualifying conditions depend on the activity, investment size, and compliance with ASEZA regulations. You must apply to ASEZA and obtain formal approval to benefit from incentives. A lawyer or advisor can help prepare the application and ensure the business plan meets ASEZA criteria.
Registration requires a legal address in Jordan. For companies within ASEZA, lease arrangements or permits for land use will be required. Some service providers and local agents offer business setup assistance and registered office services for initial registration, but actual operations usually require a physical location and compliance with municipal and ASEZA rules.
After formation you must register the company with the Income and Sales Tax Department for tax identification and with the Social Security Corporation for employee social contributions. VAT registration may be required if turnover exceeds the statutory threshold. Tax filings, withholding obligations and social security contributions are ongoing obligations. Seek tax and accounting advice to avoid penalties.
Yes, shares or partnership interests can be transferred subject to the company’s constitutional documents, shareholder agreements and Companies Law procedures. Transfers often require board or shareholder approvals, updates to registration records and possible notification to ASEZA if the company is inside the zone. Proper documentation and legal advice are important to ensure the transfer is valid and recorded.
Employing foreign nationals requires work permits and residency visas issued through the Ministry of Labor and the Ministry of Interior, with coordination from ASEZA when the company operates in the zone. Employers must comply with quotas, wage requirements and labor law conditions. A lawyer or local HR specialist can advise on the documentation and process.
Look for lawyers or firms with experience in corporate formation, ASEZA regulations and foreign investment in Jordan. Verify membership in the Jordan Bar Association, request references, and ask for examples of similar work. Get a clear engagement letter that sets out scope, fees and timelines. Consider engaging an accountant familiar with Jordanian tax and social security rules as well.
Several local and national bodies are useful when forming a business in Aqaba. These include ASEZA - the Aqaba Special Economic Zone Authority for zone rules and incentives; the Companies Controller at the Ministry of Industry, Trade and Supply for company registration; the Income and Sales Tax Department for tax registration; the Social Security Corporation for employee contributions; the Ministry of Labor and Ministry of Interior for labor and immigration matters; the General Customs Department for import-export procedures; and the Aqaba Chamber of Commerce and Industry for local business support and networking.
For legal representation or regulatory advice you can consult the Jordan Bar Association for lists of licensed lawyers. Local accounting and advisory firms can assist with tax, payroll and bookkeeping. ASEZA and other public bodies publish guidance and forms, and engaging a lawyer experienced in ASEZA and Jordan corporate law is often the most efficient way to handle compliance and approval procedures.
1. Define your business activity and whether you will operate inside ASEZA or outside the special economic zone. This choice affects incentives, permits and procedures.
2. Choose the legal form that best matches your liability, governance and investment needs. Consider future plans for investors, financing and exit strategies.
3. Prepare a checklist of required documents - identification, articles of association, lease or site documents, capital proof and any sector approvals. If you are a foreign investor, prepare incorporation and ownership documentation translated and notarized as required.
4. Contact a local lawyer and an accountant experienced with Aqaba and ASEZA matters. Ask for an engagement letter detailing the scope, estimated timeline and fees. Confirm the lawyer has experience with ASEZA procedures if you plan to operate inside the zone.
5. Reserve a company name, draft and notarize constitutional documents, open a local bank account if required, and submit registration applications to the Companies Controller and ASEZA where applicable. Register for tax, VAT and social security as soon as the company is active.
6. Obtain any sector-specific licenses, labor approvals and permits for foreign employees. Complete land or lease arrangements and municipal approvals prior to commencing operations.
7. Keep records of corporate decisions, shareholder resolutions and contracts to maintain compliance. Plan for ongoing tax filings, audit requirements and ASEZA reporting obligations where they apply.
If you need legal assistance, start by preparing a brief summary of your business plan, planned location, proposed ownership structure and timeline. Provide this to a lawyer so they can advise on the precise steps and documents required for Aqaba and ASEZA, and prepare an action plan to complete formation and regulatory compliance efficiently.
