Investment


Investment Climate

In the belief that an efficient regulatory framework stimulates the role of the private sector, Jordan has recognized the need to establish business-friendly structures with strong incentives to entrepreneurial initiative. His Majesty King Abdullah has identified increased investment as a national goal, and Foreign Direct Investment (FDI), together with domestic investment, is the surest catalyst for creating sustainable economic growth. With the establishment of the Investment Promotion Law in 1995, and with other subsequent actions designed to enhance the investment environment, Jordan has opened its economy to the wealth creation that business and investment bring.

The Investment Promotion Law accords generous and attractive incentives to domestic as well as international investors in terms of freedom from customs duties, tax holidays, income tax exemptions and unrestricted transfer of capital and profits. The implementation of this law is vested in the Jordan Investment Board which is the only national entity charged with the promotion of investment in Jordan. The law irrevocably affirms that both Jordanian and non-Jordanian investors are treated as equals.

Incentives and Benefits

A. Income and Social Service Taxes Exemptions:

Projects approved by the Investment Committee enjoy a ten year exemption from income and social services taxes at the following rates depending on the sector and the area in which the project is located:

Projects in zone A 25%
Projects in zone B 50%
Projects in zone C 75%

Where a project is expanded, improved or modernized so as to increase its production capacity, it shall receive an additional year of exemption for every increase of production, which is not less than 25%, for a maximum of four years.

B. Customs Tax Exemptions:

Imported fixed assets required for the project are exempted from customs taxes and fees for a period of three years starting from the date approval is granted.
Imported fixed assets needed for expanding, modernizing, or developing a project are exempted from customs taxes and fees, if this results in an increase of a minimum of 25% of the production capacity.
Spare parts imported for the project are exempted from taxes and fees provided that their value does not exceed 15% of the total value of the fixed assets utilizing these spares.
Hotel and hospital projects are granted extra exemptions from customs taxes and fees on their imports of furniture and supplies for the purpose of renewal, once every seven years.
Any increase in the value of imported fixed assets is exempted from customs taxes and fees if the increase results from a rise in prices, freight charges or changes in exchange rates.
Taxes are defined in the Investment Law to be "taxes that are levied by virtue of the laws in force on fixed assets except for municipality fees," whereas fees are defined to include "import, customs and other fees provided for in other legislation in force that are levied on different fixed assets except for municipality fees."

For further Information on the subject, please contact Jordan Investment Board at the following address:

Jordan Investment Board
P.O. Box 893
Amman 11821 Jordan
Tel: +962 6 5655366 - 5608400/15
Fax: +962 6 5608416
E-mail: info@jib.com.jo
URL: http://www.jordaninvestment.com

Investment Regulations

General Registration Procedure

  1. All enterprises, whatever their legal form, operating in Jordan must register with the Controller of Companies at the Ministry of Industry and Trade. Only joint ventures are excluded. Foreign companies seeking to open a regional office or a branch in Jordan must apply to the Controller of Companies for registration by submitting all necessary documents in Arabic.

  2. Companies operating in Jordan must register with the Chamber of Commerce or the Chamber of Industry, as applicable.

  3. All companies operating in Jordan should register with the Income Tax Department.

  4. Companies employing more than five people must register with the Social Security Corporation.

  5. All enterprises must obtain an annual license from the concerned municipality.

  6. Industrial projects can receive an industrial registration certificate from the Ministry of Industry and Trade upon completing an application with the Department of Industrial Development.

Affecting the foreign company's activities and help ensure that copyrights, patents and trademark rights are protected.

Registration Procedure for Non-Operating Foreign Companies
1- An application must be signed before the Controller of Companies or anyone authorized by him in writing or before a Notary Public. It should include the following information:

  • Name of the company.

  • Nationality of the company.

  • Objectives of the company in its home country.

  • Address of the company's head office.

  • Place, number and date of the company's registration at its place of incorporation.

  • Name of the company's representative in Jordan.

  • The duration for which the company was incorporated, whether fixed or not.

  • The capital of the company, names of the promoters or partners, nationality of each, and their shares along with information relating to its board of directors.

  • Objectives of the company in Jordan.

2- The following documents should be attached to the application of registration:

  • A certificate of the registration or incorporation of the company.

  • The company's Article of Memorandum of Association showing its objectives, share capital and form.

  • The company's latest balance sheet or annual report certified by a licensed auditor.

  • A power of attorney in favor of the company's representative in Jordan.

  • Any recent brochures or literature setting forth the activities, size and other particulars concerning the company.

3- All documents must be certified by the Jordanian Embassy and the Ministry of Foreign Affairs in the country of origin in addition to the Ministry of Foreign Affairs in Jordan. The documents must also be translated into Arabic.

4- The translation must be certified by the Notary Public in Jordan.

Registration Procedure for Operating Foreign Companies
1- An application must be signed before the Controller of Companies or anyone authorized by him in writing or before a Notary Public, along with the following information:

  • The name, type, and share capital of the company.

  • The objectives of the company in Jordan.

  • Detailed information concerning the founders or partners of the company and its board of directors and the number of shares, if any, held by each of them.

2- The following documents must be attached to the application of the registration:

  • The Articles of Memorandum of Association of the foreign company.

  • Written official evidence of approval from the relevant authorities for the conduct of activities in Jordan and the investment of foreign capital therein, in accordance with the legislation in force.

  • A list of the names of the members of the foreign company’s board of directors, along with the nationality of each one, in addition to the names of the persons authorized to sign on behalf of the company.

  • A copy of the proxy according to which the foreign company authorizes a person resident in Jordan to receive notification on its behalf.

  • A balance sheet authenticated by a licensed auditor for the last fiscal year of the company in its head quarters.

3- All documents must be certified by the Jordanian Embassy and the Ministry of Foreign Affairs in the country of origin in addition to the Ministry of Foreign Affairs in Jordan. The documents must also be translated into Arabic.

4- The translation must be certified by a Notary Public in Jordan.

Registration Procedure for Public and Private Shareholding Companies
Private shareholding companies (PSC), public shareholding companies (PLC) and holding companies (HC) are registered using the following registration procedures:

1- An application for registration is submitted to the Controller of Companies. This application should be signed in front of the Controller or the person authorized by him in writing, a Notary Public, or any licensed lawyer, and submitted together with:

  • Name, nationality, address of promoters and their respective shares in the company.

  • The name, objectives, share capital, duration and head office of the shareholding company.

  • Detailed provisions governing, inter-alia, the management of the company, shareholders' meetings, the transfer of shares and the dissolution and liquidation of the shareholding company.

2- The Controller must issue a resolution approving the registration of the PSC within 15 days of the submission of the application. In case the Controller declines, the partners may object to the Minister of Industry and Trade within 30 days, and if the Minister refuses the objection, the partners may appeal to the High Court of Justice. After the issuance of the approval, the Controller undertakes the completion of the registration. Partners must produce documents proving that no less than 50% of the company's capital has already been paid and the remaining 50% to be paid within the following two years.

3- The Minister, upon the recommendation of the Controller, issues a resolution approving the registration of a PLC within 30 days. If the Minister declines to register the company, then the promoters have the right to appeal to the High Court of Justice.

Registration Procedure for General and Limited Partnerships
Limited and general partnerships are registered according to the following procedures:

An application for registration must be submitted to the Controller of Companies together with the original partnership agreement signed by all partners, and with a memorandum signed by each of them before the Controller or the person authorized by him in writing, a Notary Public or any licensed lawyer. The following information must be included:

  • Name, nationality, age and address of each of the partners.

  • The capital of the partnership and the share of each partner.

  • The name, trade name, objectives, duration and head office of the partnership.

  • Name of the partner(s) authorized to manage and sign on behalf of the partnership.

The Controller has to approve the registration of the partnership within 15 days from the date the application is submitted. If registration is rejected by the Controller, the partners may submit an objection to the Minister within 30 days. If the Minister declines the objection, then the partners become entitled to appeal to the High Court of Justice.

For further information, please contact the Jordan Investment Board at the following address:

Jordan Investment Board
P.O. Box 893
Amman 11821 Jordan
Tel: +962 6 5655366 - 5608400/15
Fax: +962 6 5608416
E-mail: info@jib.com.jo
URL: http://www.jordaninvestment.com