Why is Jordan a Good Choice for Investment?
Jordan is one of the most stable countries in the Middle East. The Jordanian government provides facilitates the procedures for investors from different countries to encourage investment on its land and create competition in the Jordanian market. Exemptions are also granted for fixed assets from taxes and fees.
What are the Documents Required to Set up a Company in Jordan?
- The ID card of the founder of the company.
- A valid passport for foreign investors.
- The commercial registration document obtained from the Ministry of Industry, Trade and Supply.
- A document proving the founder’s ownership of the site where the company is to be established.
- Occupancy permission to prove that the site is commercial.
- Commercial registration document, which is also obtained from the Ministry of Industry, Trade and Supply.
Also read: A Simplified Definition of Commercial Law
What are the Types of companies in Jordan?
Partnerships consist of at least two people and this number must not exceed twenty people, bearing in mind that each person must be at least eighteen years old.
Upon registering the company, the basic contract includes the following:
- The company address and trade name, if any.
- The names of the partners, their nationality, age and address.
- The amount of the company’s capital and the share of each partner.
- Company goals.
- The terms of the company, if it is limited.
- The name of the authorized partner or the names of the partners authorized to manage the company.
- The status of the company in case of death or bankruptcy of any partner.
If the founding persons wish to make any amendments to this contract, this must be done within a period of thirty days from the date of the contract.
Limited Partnership Firms
A limited partnership firm consists of two types of partners:
The joint partners: who manage this company and deal with its debts.
Limited partners: those who are not responsible for managing the company, but who participate with their capital, and are obligated to pay the company’s debts according to the amount of their share in the company only. The limited partner can assign his share in the company without the need of the consent of all partners.
The provisions related to simple partnerships apply to the limited partnership firms.
Joint Venture Company
The joint venture company consists of at least two persons. The company does not have legal personality and is not subject to registration and licensing procedures. In order to guarantee the rights of the partners in this type of companies, the company contract outlines their obligations and rights and determines how their profits and losses are to be distributed.
Limited Liability Company
The limited liability company consists of at least two persons. Partners are not obligated to the debts of the company except to the extent of their share in it. Note that the phrase (limited liability) must be mentioned in all documents issued by the company.
The articles of association of the limited liability company must include the following data
- Company name and objectives.
- The names of the partners, their nationality and address.
- The amount of the company’s capital, and the share of each partner in it.
- An indication of the shares in the capital, the name of the partners who provided them and the value.
- The way the company is run.
- Conditions for assigning shares in the company.
- How to distribute profits and losses.
- Company liquidation rules and procedures.
Also read: The Importance of Commercial Law
Partnership Limited by Shares
Consists of two types of partners:
Joint partners: They must not be less than two people, and they manage this company and deal with its debts.
Limited Partners: Their number must not be less than three persons, and they are not responsible for the company’s management tasks, but they participate in their capital, and they are obligated to pay the company’s debts according to the amount of their share in the company.
The capital must not be less than one hundred thousand Jordanian dinars, and the capital must be divided into shares of equal value.