Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Private equity involves the investment of capital into private companies or the acquisition of private companies that are not listed on public stock exchanges. In Amman, private equity is becoming a significant avenue for financing startups, expanding established businesses, and encouraging economic growth. The legal landscape in Jordan is shaped by evolving legislation and regulations aimed at supporting investment flows while safeguarding investors, companies, and the broader economy. Legal compliance, due diligence, and structuring investment deals all fall under the purview of private equity law in the region.
Private equity transactions are often complex, involving large sums of money, intricate agreements, and significant regulatory requirements. You may require legal assistance if you fall into these common scenarios:
Private equity activities in Amman, and Jordan as a whole, are governed by several key laws and regulations. The Companies Law, the Securities Law, and related regulations set forth by the Jordan Securities Commission (JSC) form the foundation for private equity operations. Investors must also consider the Investment Law of Jordan, which offers various incentives and protections for foreign and local investors.
Some of the key legal aspects relevant to private equity in Amman include:
The usual process involves identifying a target company, conducting due diligence, structuring the investment, negotiating the terms, obtaining regulatory approvals where needed, finalizing legal agreements, and executing the investment.
Yes, some sectors in Jordan restrict foreign ownership, but many allow full or majority foreign participation. The relevant ministries or regulatory bodies provide guidance depending on the industry.
Due diligence typically covers legal, financial, tax, commercial, and operational aspects of the target company. It helps identify risks and informs negotiation of transaction terms.
Private equity funds in Jordan may be structured as companies, partnerships, or other investment vehicles depending on investor needs and regulatory requirements. The legal structure impacts fund governance, investor rights, and tax obligations.
Common agreements include term sheets, share purchase or subscription agreements, shareholders agreements, and sometimes management or service agreements.
Certain transactions, especially those above specific thresholds or involving restricted sectors, require notification or approval from regulatory bodies such as the Jordan Securities Commission or sector-specific authorities.
Tax treatment depends on the nature of the investment and the investor’s status. Attention should be paid to capital gains tax, withholding tax on dividends, and taxes on profit repatriation. Professional tax advice is often required.
Exit strategies depend on the legal structures in place, market conditions, and regulatory requirements. Common exit options include trade sales, initial public offerings (IPOs), or sale to another investment fund.
The Companies Law and shareholder agreements typically set out the rights of minority investors, including tag along rights, information rights, and veto rights for certain corporate actions.
Yes, Jordanian law permits the establishment and operation of Sharia-compliant investment vehicles, and legal advisors can guide investors through appropriate structuring.
Several resources and organizations can provide further guidance or regulation in the field of private equity in Amman:
If you are considering a private equity investment, transaction, or fund operation in Amman, it is prudent to consult a qualified local lawyer with expertise in this area. A legal expert can help you:
Begin by clarifying your investment or business objectives and gathering documentation about your intended transaction. Reach out to reputable private equity law firms or practitioners in Amman for an initial consultation. Prompt, expert legal guidance will support your interests and help ensure smooth and compliant private equity operations in the Hashemite Kingdom of Jordan.
