Προφίλ συναλλασσόμενης χώρας Ιορδανία

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
A Private shareholding company is a joint-stock company with limited liability. Minimum 30 000 JD. 50% must be subscribed at the constitution and 50% within two years.	Minimum 2. Maximum 50 shareholders. Liability is limited to the amount contributed in capital.
A Public shareholding company is the equivalent of the Public Limited Company. Minimum 500 000 JD. 25% must be subscribed at the constitution and 75% within 4 years.	Minimum 2. No maximum Liability is limited to the amount contributed.
Limited partnership No minimum capital.	No minimum. Maximum 20 shareholders. One of the partners must have liability for the amount he contributed in the capital.
General partnership No minimum capital.	From 2 to 20 partners Partners' liability is several and unlimited for the debts of the company.

Business setup procedures

Setting up a company	Ιορδανία	Middle East & North Africa
Procedures (number)	8	8.1
Time (days)	13	20.0

πηγή: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Jordan.
Jordan Investment Board, Register your company.
The competent organization: The Department of Trade and Industry, the tax department, the social security office and the Town Council where the company has set up business are the competent organizations for registering a company.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI of inward flow (millions USD)	2828.9	2430.042313	1703.808181
FDI inward stock (millions USD)	16319.6	18704.6	20406.0084507042
Performance Index*, ranking on 141 economies	13/141	14/141	-
Potential Index**, ranking on 141 economies	73/141	-	-
Number of Greenfield investments***	34	26	-
FDI inwards (in % of GFCF****)	44.4825210612702	15.5569204089743	-
FDI stock (in % of GDP)	76.7343125433962	81.4049410562022	-

πηγή:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk.*** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Jordan

Strong points: For several years the country has registered substantial growth and the Jordanian market is opening progressively. The government has made a remarkable effort in controlling public spending, which, according to IMF, has placed Jordan among the most dynamic countries in the Middle East. Jordan has also backed the human factor and its workforce is among the best-trained ones in the Arab world.

The country is politically stable. Its geographical location is also an important asset. The agreements signed by the country have given Jordan access to more than a billion potential consumers.
Weak points: In a political level, Jordan is located in an unstable region being near Iraq, Syria and Israel. On the domestic front, the massive influx of Iraqi refugees, added to a considerable number of Palestinian refugees, may represent a risk factor. In addition, Jordan does not have many natural resources and remains a modest market in comparison with Egypt or its Gulf neighbors. The country registers a substantial structural trade deficit linked to its lack of natural resources and food products. It is very dependent on foreign aid.
Government measures to motivate or restrict FDI: King Abdallah has established a progressive economic liberalization which favors foreign investment. The special economic areas, such as Qualified Industrial Zone (QIZ) and the Free Zone of Agaba offer very advantageous tax regimes for companies. Also, the government has simplified the registration procedures for foreign companies creating a unique office at the Ministry of Industry and Commerce. Finally, the Jordan State has launched a campaign of privatization which has benefited public and private partnerships in several sectors. Among the main measures established by the government, we could cite:
- An income tax exemption during 10 years, variable depending on the place and sector of activity;
- A tax exemption on income generated from the export of goods and services;
- The repatriation of capital, profits and salaries without charges.

Procedures relative to foreign investment

Freedom of establishment: It is guaranteed except in some sectors which are considered to be sensitive such as publishing, publication, aeronautics, architecture or engineering. Some sectors are totally forbidden to foreign companies such as security services and the maintenance of law and order, sports clubs or passenger transport. The US State Department gives a complete list of the limitations.
Acquisition of holdings: A majority holding interest in the capital of a local company is legal in Jordan, except in certain sectors where foreign interest cannot exceed 49%.
Obligation to declare: The Agency for the promotion of foreign investment in the country provides information about the necessary authorizations for setting up business.
Competent organization for the declaration: The website of the Amman Stock Exchange listing the restrictions on foreign investment.
Jordan's Securities Commission
Requests for specific authorizations: There is no obligation to declare in Jordan. However, in some sectors such as commercial activities, engineering, transport services... foreign capital invested in the company may not be more than 50% of the total capital. In other sectors such as freight or postal services, this share is reduced to 49%.

Finding assistance for further information

Investment aid agency: Jordan Investment Board
Other useful resources: Jordan Investment Board website
Website listing the Jordanian free zones