How to Do Business In Jordan? – Super Business Manager

Doing business in Jordan involves a combination of navigating legal requirements, establishing a registered entity, and adhering to local business culture and etiquette.

Here is a comprehensive guide on how to approach business in Jordan:

1. Company Registration and Legal Steps

The formal process for establishing a business in Jordan is generally handled through the Companies Control Department (CCD) at the Ministry of Industry, Trade and Supply.

Step	Detail	Key Requirements (for Foreign Investors)
Choose Business Structure	Select the appropriate legal entity (e.g., Limited Liability Company (LLC), Private Shareholding Company, Branch Office). The most common is the Limited Liability Company (LLC).	Minimum Capital Requirement: Typically starts at JOD 50,000 for foreign investments for most activities, though sectors like finance and tourism may be higher. An LLC can start with JOD 1,000.
Name Reservation	Reserve a unique company name with the CCD.	Provide identification documents (passport copies) for all shareholders and directors.
Prepare Documents	Draft and notarize the company’s Articles of Association and Memorandum of Association. Documents must be translated into Arabic and certified by a Notary Public.	Appoint a local legal representative to assist with compliance and official paperwork.
Deposit Capital	Deposit the required minimum capital in a Jordanian bank account and obtain a deposit certificate.	Proof of business registration and identity documents are required to open a corporate bank account.
Submit Registration	File the application and all required documents with the CCD. Foreign investors are also often required to register with the Jordan Investment Commission (JIC).	Submission of a business plan may be required by the JIC.
Tax and Social Security Registration	Register for taxes with the Income and Sales Tax Department (ISTD) to obtain a Tax Identification Number (TIN) and for Social Security Corporation (SSC) registration.	Registering for Corporate Income Tax and VAT (which is typically 16%).
Obtain Licenses	Secure any necessary commercial, professional, sectoral, and vocational licenses from the relevant government authorities or municipalities.	Licenses must be renewed annually or on a five-year basis.
Work Permits/Residency	If hiring non-Jordanian staff, you must obtain a valid work permit from the Ministry of Labor and secure a residency permit.	The work permit application requires approval and is often based on the premise that the required expertise is not readily available in the local workforce.

2. Taxation and Financial Reporting

Foreign companies are subject to the same tax obligations as local businesses, which include:

Corporate Income Tax: The rate generally falls between 20% and 35%, depending on the industry.
Sales Tax (VAT): Typically set at 16%.
Annual Financial Reports: Companies must submit annual financial reports, certified by a licensed Jordanian auditor, to the CCD, usually within three months of the end of the fiscal year.

3. Jordanian Business Culture & Etiquette

Success in Jordan is often built on strong personal relationships, trust, and respect for hierarchy.

Area	Best Practices
Relationships & Trust	Personal relationships are central to business. Take the time to build trust and rapport (often over tea or a meal) before diving into business discussions. Patience is essential.
Appointments & Time	Meetings may not start exactly on time, as Jordanians prioritize the flow of the relationship and event over strict adherence to the clock. However, you should still aim to be on time as a sign of respect.
Greetings & Formality	A handshake is the customary greeting. Greet the most senior (or eldest) person first. Use formal titles unless invited to use first names.
Dress Code	Conservative and formal dress is expected. Men should wear a business suit and tie. Women should opt for conservative attire with high necklines, long sleeves (or elbow length), and skirts/dresses that fall below the knee.
Communication	Jordanians may use an indirect (high-context) communication style. Be diplomatic and tactful in negotiations. Avoid putting an individual on the spot or causing them to “lose face.”
Sensitive Topics	When making small talk, be cautious and avoid uninformed remarks on sensitive topics like religion and politics.
Work Week	The standard work week runs from Sunday to Thursday. Friday and Saturday are the weekend. Working hours are reduced during the holy month of Ramadan.