Key Takeaways
- All companies incorporated in Jordan must register with the Companies Control Department (CCD) under the Ministry of Industry, Trade and Supply, as mandated by Companies Law No. 22 of 1997, as amended, and failure to satisfy registration requirements results in application rejection or suspension of the operating licence.
- Minimum share capital thresholds differ by entity type and must be met at the point of formation, meaning foreign investors cannot apply a single capital figure across all Jordanian company structures.
- Beneficial ownership disclosure carries direct reporting obligations under Jordan's anti-money laundering regulatory framework, requiring companies to identify and disclose ultimate beneficial owners rather than treating this as an optional compliance step.
- Foreign-owned entities operating in regulated industries face additional approval requirements beyond the CCD's standard registration process, depending on the sector and the extent of foreign ownership involved.
Incorporating in Jordan is governed by the Companies Law No. 22 of 1997, as amended, administered by the Companies Control Department (CCD) under the Ministry of Industry, Trade and Supply. This article covers the structural, documentary, and compliance requirements that apply during and after entity formation.
Failure to satisfy these requirements results in rejection of the registration application or, where a company is already registered, potential suspension of its operating licence.
Requirements vary depending on the legal entity type you select, the sector your business operates in, and whether foreign ownership is involved. Certain industries are subject to additional regulatory approvals beyond the CCD's standard process.
This article is most relevant to foreign investors and business owners evaluating a formal presence in the Jordanian market for the first time.
Minimum Share Capital Requirements in Jordan
Minimum share capital requirements in Jordan vary by entity type and are governed under the Companies Law No. 22 of 1997, as amended. The Companies Control Department (CCD), operating under the Ministry of Industry, Trade and Supply, is the authority responsible for verifying capital at the point of registration.
For a Limited Liability Company (LLC, also referred to as WLL), the minimum share capital is set at JOD 1,000. Capital must be deposited into a Jordanian bank account before the incorporation process is completed, and proof of deposit is submitted to the CCD as part of the registration file.
| Parameter | Detail |
|---|---|
| Minimum Authorized Share Capital | JOD 1,000 for a Limited Liability Company (WLL) |
| Maximum Authorized Share Capital | No statutory maximum |
| Minimum Paid-Up Capital | JOD 1,000 |
| Paid-Up Requirement at Incorporation | Full paid-up capital required before registration is finalized |
| Accepted Currency | Jordanian Dinar (JOD) |
| Accepted Forms of Contribution | Cash; non-cash contributions permitted subject to valuation |
| Timeframe to Deposit Capital | Prior to submission of incorporation documents to the CCD |
The full paid-up capital must be deposited in a local bank account before the CCD will process the incorporation application. A bank certificate confirming the deposit is a required document in the registration file, not a post-incorporation formality.
Company Secretary Requirements in Jordan
Under the Companies Law No. 22 of 1997 and its amendments, Jordan does not mandate a company secretary as a distinct statutory officer for most private limited companies. A registered agent equivalent, however, is required to maintain legal standing with the Companies Control Department, the authority that oversees corporate registration and ongoing compliance.
Your firm's designated representative is responsible for receiving official correspondence, ensuring filings are submitted to the Companies Control Department within prescribed timeframes, and maintaining the accuracy of statutory records held on the commercial register.
Qualification criteria for who may serve in this capacity include:
- The representative must be a natural person or a licensed corporate services provider registered in Jordan.
- Jordanian residency is generally expected, as the representative must be reachable by local regulatory authorities.
- No specific professional licence is universally mandated, though legal and corporate service firms commonly fill this role.
- A foreign national may serve if they hold valid residency status and are legally authorised to conduct business activities.
- Entities acting in this capacity must themselves be in good standing on the commercial register.
Incorporate Your Company in Jordan
Set up your business entity in Jordan with support from Expanship's corporate formation team, covering registration, documentation, and compliance requirements.
Registered Office Requirements in Jordan
Registered office requirements in Jordan mandate that every company registered under the Companies Law No. 22 of 1997 maintains a physical address within the country where official correspondence and regulatory notices can be served. Failure to maintain a compliant legal address can result in administrative penalties imposed by the Companies Control Department, including suspension of the company's registration.
- A physical street address inside Jordan is required; a P.O. box alone does not satisfy the requirement.
- Virtual office addresses are not formally recognised as compliant registered addresses under the Companies Law.
- The address must be locally based; a foreign address cannot fulfil this obligation.
- Proof of occupancy, such as a lease agreement or title deed, is typically required to substantiate the address at the time of registration.
- The registered address is recorded in the public commercial register maintained by the Companies Control Department and is accessible to third parties.
- Any change to your firm's registered address must be formally notified to the Companies Control Department by filing the relevant amendment with the applicable fee.
Director Requirements in Jordan
Under Jordan's Companies Law No. 22 of 1997 (as amended), director requirements Jordan company formations must adhere to vary by entity type, with limited liability companies (LLCs) appointing a manager rather than a formal board. Upon appointment, directors and managers assume statutory duties of loyalty and due care toward the firm, with personal liability attaching where they act outside their authority or cause harm through negligence or misconduct.
| Parameter | Detail |
|---|---|
| Minimum Number of Directors | One manager or director is sufficient for an LLC; joint-stock companies require a minimum of three board members. |
| Maximum Number of Directors | No statutory maximum is prescribed for LLCs; joint-stock companies are subject to their articles of association. |
| Local/Resident Director Required | No statutory residency requirement exists, though a local manager is common in practice for operational licensing purposes. |
| Nationality Restrictions | No nationality restrictions apply; foreign nationals may serve as directors or managers. |
| Minimum Age Requirement | Directors and managers must be at least 18 years of age. |
| Corporate Directors Permitted | Corporate directors are not generally permitted; natural persons are required to hold the directorial role. |
| Director Must Be a Shareholder | No statutory requirement for a director or manager to hold shares in the entity. |
| Publicly Listed on Registry | Director and manager information is filed with the Companies Control Department and is part of the public commercial register. |
| Disqualification Conditions | Individuals who have been declared bankrupt or convicted of offences involving dishonesty may be disqualified from serving. |
Despite having no residency requirement for directors, Jordan's Investment Law grants the Companies Control Department authority to impose additional managerial conditions on foreign-owned entities operating in restricted sectors, which can effectively require a Jordanian national in a managerial role.
Shareholder Requirements in Jordan
A Limited Liability Company (LLC) in Jordan requires a minimum of two shareholders and permits up to fifty. A sole shareholder structure is not available under this entity type.
Nationality and Residency Restrictions
Foreign shareholder conditions in Jordan are governed primarily by the Investment Environment Law No. 30 of 2014 and relevant sectoral regulations. In most sectors, 100% foreign ownership is permitted, though restricted industries such as transportation, media, and certain retail activities impose local ownership requirements.
Corporate Shareholders
Corporate entities may act as shareholders in a Jordanian LLC. No additional conditions specific to corporate shareholder eligibility are imposed beyond standard registration documentation.
Shareholder Liability
Under Jordanian company law, shareholder liability in an LLC is limited to each party's capital contribution. No circumstances under ordinary operation extend personal liability beyond that subscribed amount.
Register of Shareholders
The Companies Control Department requires an LLC to maintain a register of shareholders. This register is subject to update obligations upon any ownership transfer, and relevant changes must be filed with the Companies Control Department to remain legally effective.
Shareholder Structure Guidance for Your Jordanian Entity
Get clarity on ownership configuration, foreign shareholder eligibility, and register obligations before incorporating in Jordan.
UBO / Beneficial Ownership Disclosure Requirements in Jordan
Beneficial ownership disclosure Jordan is governed by the Companies Law No. 22 of 1997 (as amended) and implemented through the Companies Control Department (CCD), which operates under the Ministry of Industry, Trade and Supply.
- Identify all natural persons who ultimately own or control 10% or more of the company's shares or voting rights, or who otherwise exercise control through other means.
- Submit beneficial ownership information to the Companies Control Department at the time of incorporation or registration.
- Disclose the full name, nationality, date of birth, and identification details of each beneficial owner.
- Update the register held with the CCD whenever a change in beneficial ownership occurs.
| Parameter | Detail |
|---|---|
| Ownership Threshold for UBO Status | 10% or more of shares or voting rights |
| Filing Authority | Companies Control Department (CCD) |
| Disclosure Deadline at Incorporation | At the time of company registration |
| Publicly Accessible Register | No statutory public access requirement |
| Penalties for Non-Disclosure | Subject to fines and administrative sanctions under the Companies Law |
| Ongoing Update Obligation | Yes; changes must be reported to the CCD |
KYC / Document Requirements in Jordan
KYC document requirements Jordan are governed primarily by the Anti-Money Laundering and Counter Terrorism Financing Law No. 46 of 2007 and its amendments, administered by the Anti-Money Laundering Unit under the Central Bank of Jordan.
Individual / Personal Documents
- Valid passport or national identity card for each director, shareholder, and beneficial owner
- Proof of residential address dated within three months, such as a utility bill or official bank statement
- Completed KYC declaration form as required by the Companies Control Department
- Recent passport-sized photographs may be requested depending on the registering agent
Corporate Documents
- Certificate of incorporation of the parent or shareholder entity
- Memorandum and articles of association of the corporate shareholder
- Register of directors and shareholders of the corporate entity
- Proof of registered address for the corporate shareholder
Source of Funds Documentation
- Recent bank statements covering a minimum of three to six months
- Audited financial statements where the entity has an established operating history
- A written source of funds declaration signed by the relevant principal
Notarisation and Apostille Requirements
- Foreign documents must generally be notarised and legalised through the relevant country's foreign affairs ministry
- Arabic translation by a certified translator is required for all non-Arabic documents
- Jordan is not a signatory to the Hague Apostille Convention, so full consular legalisation applies
Unsigned or improperly legalised foreign documents are the most frequently cited reason for rejection by the Companies Control Department.
Company Name Requirements in Jordan
Company name requirements Jordan are assessed by the Companies Control Department (CCD) under the Ministry of Industry and Trade. Proposed names are reviewed for availability and compliance before registration is confirmed.
Names must be in Arabic, though a foreign-language transliteration may be permitted alongside it. The legal form suffix, such as "ش.م.ع" for a public shareholding company, must appear in the name.
Certain words are outright prohibited or require prior governmental approval. Terms referencing financial institutions, royal associations, or government bodies generally fall into the restricted category.
Name reservation is available through the CCD prior to formal incorporation. Reserved names are typically held for a limited period, after which the reservation lapses if the incorporation process is not completed.
Compliance Services for Companies in Jordan
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Conclusion
Jordan company incorporation requirements are defined primarily by the Companies Law No. 22 of 1997, as amended, and administered through the Companies Control Department under the Ministry of Industry, Trade and Supply. Among the requirements covered, the minimum share capital thresholds vary meaningfully by company type, and beneficial ownership disclosure obligations carry direct reporting duties under anti-money laundering regulations. Once these requirements are understood, foreign investors are positioned to engage the registration process with clarity on document preparation, entity structuring, and ongoing compliance obligations.
Expanship's Corporate Formation Services in Jordan
Expanship's Jordan corporate formation services are designed to support businesses working through requirements set by the Companies Control Department, from preparing Articles of Association to meeting sector-specific licensing conditions. Your involvement in the process doesn't disappear, but the administrative weight of navigating Jordan's registration framework shifts substantially.
Beyond initial registration, Expanship supports the full lifecycle of your entity's setup and ongoing compliance:
- Preparing incorporation documents and filing your company registration with the relevant Jordanian authorities
- Providing registered agent and office address services to satisfy local presence requirements
- Liaising directly with government bodies, including the Ministry of Industry, Trade and Supply where applicable
- Managing post-incorporation obligations to keep your entity in good standing
- Facilitating introductions to banking institutions operating in Jordan
- Handling tax registration and coordination with the Income and Sales Tax Department
Ready to take the next step? Contact Expanship Jordan to discuss your setup requirements.
Frequently Asked Questions (FAQ)
Foreign nationals can hold shares and serve in directorial roles in a Jordanian LLC, though certain business activities are restricted or require Jordanian partnership under the Investment Environment Law No. 30 of 2014 and its associated negative lists. Full foreign ownership is permitted in many sectors, but activities listed under restricted categories require a minimum percentage of Jordanian ownership.
Failure to submit accurate beneficial ownership disclosures to the Companies Control Department can result in administrative fines and potential suspension of the company's legal status under Jordanian anti-money laundering regulations. The obligation applies to all registered entities, and non-compliance is treated as a regulatory violation rather than a minor administrative oversight.
Jordan does not impose a mandatory requirement for a locally resident company secretary in the same way some other jurisdictions do, but the registered entity must maintain a local registered address and a responsible contact accessible to the Companies Control Department. Administrative responsibilities typically fall on a director or an appointed local representative.
Corporate shareholders must provide additional layers of documentation compared to individual shareholders, including certified constitutional documents, proof of legal standing, and beneficial ownership information tracing through to the natural persons behind the corporate entity. Individual shareholders generally submit identity documents, proof of address, and notarised or apostilled supporting materials as required by the Companies Control Department.
If the Companies Control Department rejects your proposed name, you must submit an alternative that meets Jordanian naming rules, including restrictions on names that imply government affiliation, use protected terms, or duplicate existing registered entities. The registration process does not advance until an approved name is confirmed, which can delay your incorporation timeline if alternatives are not prepared in advance.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
