Introduction
Establishing a business or company in Jordan is an important step for entrepreneurs aspiring to register their own ventures with specific legal objectives. It also plays a pivotal role in contributing to the local Jordanian economy.
Therefore, understanding the fundamental steps to get started on the right track is crucial, as the process requires a clear understanding of the legal and regulatory procedures involved.
When deciding to start a company or business, the process begins with a careful study of local market needs and identifying the best opportunities based on these insights. Once the main purpose of the company or activity is determined, the next step is to carry out the necessary procedures to make the business legal and official.
To transform your entrepreneurial idea into reality in Jordan, a set of basic steps must be followed. Join us to learn more about paving the way for your idea in the Jordanian business market.
Starting Your Business in Jordan: Key Steps
1. Determine The Main Details of The Company or Business
The first legal step to establish a business in Jordan is choosing the company’s name and type (such as LLCs, general partnerships, limited partnerships, etc.). The company’s name must be registered in Arabic for it to be used in all procedures related to tax and financial operations. This is done in coordination with the Companies Control Department to ensure availability of use (not repeated).
2. Preparation of The Required Documents
Documents needed to register the company must be prepared first, this is done according to the type of company as different types require different documents to be registered for the Companies Control Department. The basic documents required for registration include:
- Company registration request form
- Power of attorney if the applicant is represented by someone else
- Lease agreement or proof of property ownership
- Bank statement proving at least 50% of the company’s initial capital has been deposited
- National ID for citizens or passport for foreigners
- Non-Criminal certificate if the business type requires security clearance
Additional documents may be required depending on the type of business, including special licenses for approval. Legal assistance from authorized law firms is recommended to draft the company’s bylaws in accordance with Jordanian law.
3. Deposit The Initial Capital & Submit Further Documents
At least 50% of the company’s initial capital must be deposited into a local bank account, with a deposit receipt provided. This document is essential for completing the registration process.
4. Register The Company with The Companies Control Department
Companies can be registered either in person by visiting the Ministry of Industry, Trade, and Supply or electronically. Once all legal requirements are met and fees are paid, a lawyer verifies compliance and the company registration certificate is issued.
5. Register with the Chamber of Commerce or Industry
After obtaining the registration certificate, the company must register with either the Amman Chamber of Commerce or Amman Chamber of Industry, depending on the nature of the business. This is also used later during tax registration to classify the business and its relevant tax sector.
6. Obtain a Professional License
A valid professional license is required for any type of legal business operation in Jordan. Licenses must be renewed annually or every five years. The type of license depends on the business activity type which determines the issuing authority (ministries, municipalities, or specialized government agencies).
“Based on the type of business, legislation may require obtaining a sectoral license from the relevant central government agencies before starting the operations to ensure compliance with the necessary technical and legal requirements.”
7. Registration with The Income And Sales Tax Department
All companies must register with the Income and Sales Tax Department to obtain a tax identification number. This involves submitting the registration form and documents, after which the company is assigned a tax number and becomes subject to tax obligations per Jordan’s local laws.
To ensure smooth integration with tax regulations and management of invoices electronically for mandated sectors, companies can use E-invoicing systems such as InvoiceQ, which provides a centralized E-invoicing solution that complies with the requirements of the Income and Sales Tax Department by adopting dynamic and easy options that do not require additional time or effort, ensuring accurate compliance and speedy processing.
8. Registration with the Social Security
Finally, business owners must register their establishment with the Social Security Corporation and enroll any employees (if any). Monthly social security contributions are mandatory, and registration is legally required. The tax number and professional license are used as part of the process.
Conclusion
By following these steps, business owners in Jordan can legally and efficiently establish their companies, ensuring full compliance with administrative and tax regulations, including The National E-invoicing system. Early and effective compliance enhances company credibility, avoids penalties, and enables lawful business operations under local laws.
