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Guide to Starting a Business in Jordan

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Jordan. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Open bank account; deposit 50% of the capital1 dayno charge
2Execute the company’s formation contract and the memorandum and articles of association, register the company; obtain registration certificate, and file general assembly first meeting and board of directors' minutes of meeting at the Ministry of Industry1 dayJOD 10 (Filing fee), + JOD 10 (Registration certificate fee), + 0.02% of share capital (Registration fee), + JOD 15 (Fee for publication in the official gazette)+ JOD 40 (File general assembly first meeting and board of directors' minutes of meeting) + JOD 10 (obtain standard form of memorandum and articles of association)
* 3Register for corporate tax, salary withholding tax, and VAT1 day, simultaneous with previous procedureno charge
* 4Register with the chamber of industry or chamber of commerce1 day, simultaneous with previous procedureJOD 164
5Obtain a vocational license from the municipality8 daysJOD 200
* 6Inspection by municipality on safety and health1 day, simultaneously with previous procedureno charge
* 7Register for social security1 day, simultaneous with previous procedureno charge
* Takes place simultaneously with another procedure.
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