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The Foreign Investment in Jordan

Ihqaq Law Frim > The Foreign Investment in Jordan
  • The Foreign Companies Operating in Jordan

    According to Jordanian Corporate law, any entity that is registered outside the Kingdom, whose headquarters is in another country, and whose nationality is considered non-Jordanian. In terms of its nature, it may operate in Jordan and shall be divided into two types:

    • Companies operating for limited period, which are awarded tenders in order for them to realize their work in the Kingdom for a limited period. The registration thereof shall cease upon the completion of such work unless the said Company obtains new contracts, in which case its registration shall extend to cover the execution of such work. Its registration shall be cancelled after completion of all its work in the Kingdom and after its rights and obligations are settled.
    • Companies operating permanently in the Kingdom under license by the competent official authorities.

    No foreign company or entity may exercise any commercial business in the Kingdom unless it is registered in accordance with the provisions of the corporate law after obtaining a permit to operate pursuant to the applicable Laws and regulations.

    If you want to register your foreign company to operate in Jordan, Ihqaq advises and assists you in all stages of the foreign company registration process at Companies Control Department. We prepare all the legal documents required to register your company, obtain all permits from the competent authorities, etc.

    For more information, contact us

     

  • The Non-Operating Foreign Companies
    (Companies Headquarters’ & Representative Offices)

    According to Jordanian Corporate law, the non-operating Foreign Company in Jordan is a Company or an entity which has its regional or representative office in Jordan for operations that it conducts outside the Kingdom for the purpose of using such a regional or representative office for managing its operations and coordinating them with its headquarters, and it is prohibited from carrying out any business or commercial activity inside the Kingdom.

    The registration of a Non-Operating Foreign Company in Jordan may be made in accordance with the provisions of corporate Law for establishing regional or representative offices, providing services, or technical or scientific offices.

    A Non-Operating Foreign Company enjoys the following: a) Exemption from registration and publication fees applicable to Operating Foreign Companies. b) Exemption of profits generated by the Foreign Company from businesses conducted outside the Kingdom from both income and social services taxes. c) Exemption from registration with the Chambers of Commerce and Industry, professional associations, and their registration fees and from any obligations towards same, including vocational trade license. d) Exemption of salaries and wages payable by the Non-Operating Foreign Company to its non-Jordanian employees who are working at its office in the Kingdom from income and social service taxes. e) Permission to import trade samples and models, free from customs and import taxes. f) Exemption of imported furniture and equipment necessary to furnish its office from customs and other fees and charges. g) Permitting the Company to import one car under a temporary entry status to be used by its non-Jordanian employees.

    The Jordanian Corporate law provides that the number of Jordanian employees in a Non-Operating Foreign Company in the Kingdom should not be less than half of the overall number of the Company employees.

    A Non-Operating Foreign Company shall be permitted to open with licensed commercial banks a non-resident account in Jordanian Dinars or in foreign currency, provided that these funds have been transferred to the Company from abroad through this bank.

    To help you in the registration of companies headquarters and representative offices, contact us

     

  • The Ownership & Participation Of Non-Jordanian In The Jordanian Companies

    According to the Regulation of Regulating Non-Jordanian Investments, Foreign investors are allowed full ownership in many sectors, including manufacturing, hospitals, hotels, and Agriculture.

    In the following sectors, however, foreign ownership cannot exceed 50 percent:

    A: The Following commercial activities:

    1. Purchase of goods and other movable tangibles for purposes of leasing or renting for re-leasing thereof, including machinery and equipment, transport vehicles and other transport equipment, rent a car, aircraft (without operator) and ships, excluding financial leasing services conducted by banks, financial companies and insurance companies.
    2. Purchase of goods and other movable tangibles for purposes of selling with profits.
    3. Wholesale trade and retailing.
    4. Import and export excluding importation up till the Kingdom’s border outlets.
    5. Distribution of goods and services within the Kingdom including distribution of audiovisual works.
    6. Supply services excluding food catering that is not conducted by restaurants, cafes and cafeterias

    B: The Following services:

    1. Engineering services, including all engineering categories, urban planning and landscape architectural services.
    2. Construction contracting including construction services and related engineering services.
    3. Technical testing services concerning soil tests and geotechnical testing for construction purposes.
    4. Maintenance and repair services of land transport equipment.
    5. Maintenance and repair services of radio and television transmitters and broadcast equipment.
    6. Photographic services including photocopying services and excluding motion picture and television photography services.
    7. Placement and supply services of personnel.
    8.  Brokerage services excluding financial brokerage and intermediaries conducted by banks, financial companies and financial services companies.
    9. Advertising services including advertising agencies and firms.
    10. Commercial agents and intermediary services and insurance agents.
    11. Money exchange services excluding those provided through banks or financial companies.
    12. Restaurants, cafes and cafeterias excluding those that are provided within hotels, motels, and on board of ships and trains.
    13. Travel Agencies and tour operators services (tourist and travel bureaus).

    C: The following transport services:

    1. Maritime transport and auxiliary services, including:Passenger and freight transportation excluding transportation over ships owned by non- Jordanians.Maritime survey and inspection.Maritime freight forwarding.Shipping agents’ services.Ships chandlers,Ships brokers.Ships management services
    2. Air transport auxiliary services, including: Ground Handling.Freight Inspection.Packing and unpacking.Air Cargo Agents.Freight Forwarders.Cargo Terminals and Stores.Excluding :Engine Overhaul.Airports duty-free shops.Simulators Training.Computer Reservation System (CRS).
    3. Rail transport auxiliary services, including:Cargo handling.Inspection.Packing and unpacking.Storage & warehouse services.Freight transport agency services.Cargo Agents services.Excluding:Passenger and freight transportation.Pushing and towing services.Supporting services for rail transport such as rail passenger terminal services.
    4. Road transport services, including:Specialized tourist transportation services.Supporting services of road transport such as bus station services, parking services, services related to operating subways, bridges and highways.Auxiliary services to road transport including cargo handling services, storage and warehousing services, freight transport agency services, inspection services, packing and unpacking services and freight forwarders services.

    D: Clearance services in cases where such clearance is linked to any of the services provided for in Paragraph C

    E:  The purchasing of  lands to build  residential apartments and sell them or rent them.

    In Certain sectors The Non-Jordanian investor ownership shall not exceed (49%) forty nine percent of the capital of any project in the following sectors and activities:

    1. Scheduled and non-scheduled passenger, freight and mail air transport services.
    2. Rental services of aircraft with operator.

    Certain sectors are entirely closed to foreign investors, including the following:

    • Passenger transportation;
    • Freight road transportation, including taxis, buses and trucks;
    • Quarries activities;
    • Security services;
    • Investigation services; and
    • Sports services, including the organization of sports events and clubs.

    The non-Jordanian investment shall not be less than (JD50,000) fifty thousand Jordanian Dinars or the equivalence thereof, with the exception of participating in public shareholding companies

    Jordan’s Council of Ministers is entitled to waive any restriction on foreign equity in cases where national interest is served, or where the project will develop the economy, increase exports and create jobs for Jordanians, particularly in certain locations.

    In Ihqaq, we have a legal and financial team who can help you and advise you to choose the best investment in Jordan that suited to your needs and ambitions.

    For more information, contact us

     

  • The Registration Of Individuals & Companies In Free Zones

    Free zones in Jordan offer investors exemptions from income and social services taxes, custom duties and import duties. Profits generated in free zones from exporting goods and transit trade are fully exempt from income tax, and investors may transfer profits outside Jordan without any restrictions. Moreover, the salaries of non-Jordanian employees working in free zones are exempt from income and social services taxes.

    It shall not be permissible to any person to exercise any activity in the free zones unless he\she is registered at the Free Zones Corporation.

    The right to register and license at the Corporation in accordance with the provisions of this Regulation is limited to the Individuals, Partnership Companies, Limited Partnership Companies, Limited Liability Companies, Foreign Companies and Vocational Corporations which are operating in the Kingdom in accordance with the provisions of the related legislations.

    In Ihqaq, we offer services in the registration of individuals and companies in free zones, obtaining all permits and issuing all necessary licenses.

    For more information, contact us.