Limited Liability Company (LLC)
ุดุฑูุฉ ุฐุงุช ู ุณุคูููุฉ ู ุญุฏูุฏุฉ
Company formation in Jordan
The LLC is best suited for: Small and medium businesses entering the Jordanian market, Foreign entrepreneurs and startups seeking cost-effective incorporation, Service companies, consultancies, and technology firms, Companies wanting to access the Aqaba Special Economic Zone benefits. Standard corporate income tax is 20% on taxable income. Banks and financial companies are taxed at 35%, mining at 24%, and telecom at 24%. Companies registered in the Aqaba Special Economic Zone pay a flat 5% income tax and 7% GST (instead of 16%). General sales tax (GST, equivalent to VAT) is 16% on most goods and services. Social security contributions apply for employees. Jordan has a 36-country double tax treaty network. No withholding tax on dividends paid to residents; 10% WHT on dividends, interest, royalties, and management fees paid to non-residents (may be reduced by treaty).
- Small and medium businesses entering the Jordanian market
- Foreign entrepreneurs and startups seeking cost-effective incorporation
- Service companies, consultancies, and technology firms
- Companies wanting to access the Aqaba Special Economic Zone benefits
Key Facts
Step-by-Step Formation Process
Reserve a company name with the Companies Control Department
Submit a name reservation request to the Companies Control Department (CCD) at the Ministry of Industry, Trade, and Supply. The name must be in Arabic, unique, and not misleading or conflicting with existing registrations.
Draft and sign the Memorandum of Association
Prepare the MOA specifying shareholders, capital contributions, management structure, and business activities. The MOA must be signed by all shareholders before a Jordanian notary or at the CCD.
Register with the Companies Control Department
Submit the signed MOA, passport copies, proof of address, and any sector-specific approvals to the CCD. Pay the registration fee (typically JOD 200โ500 depending on capital). The CCD issues the Certificate of Registration.
Obtain the vocational licence from the municipality
Apply for a vocational (trade) licence from the Greater Amman Municipality or the relevant local municipality. This requires proof of a registered office and may involve a site inspection.
Register for tax and social security
Register with the Income and Sales Tax Department (ISTD) for corporate income tax and general sales tax (GST/VAT). Register with the Social Security Corporation (SSC) if hiring employees.
Required Documents
- Passport copies of all shareholders and directors
- Proof of residential address for each shareholder
- Signed Memorandum of Association (Arabic)
- Name reservation certificate from CCD
- Registered office lease agreement
- Power of Attorney if applying through a representative (notarised and legalised)
- Sector-specific approvals (if applicable)
- Non-conviction certificate for directors (some activities)
Cost Overview
Tax Treatment
Standard corporate income tax is 20% on taxable income. Banks and financial companies are taxed at 35%, mining at 24%, and telecom at 24%. Companies registered in the Aqaba Special Economic Zone pay a flat 5% income tax and 7% GST (instead of 16%). General sales tax (GST, equivalent to VAT) is 16% on most goods and services. Social security contributions apply for employees. Jordan has a 36-country double tax treaty network. No withholding tax on dividends paid to residents; 10% WHT on dividends, interest, royalties, and management fees paid to non-residents (may be reduced by treaty).
Pros & Cons
- Effectively no minimum capital requirement โ JOD 1 nominal minimum
- 100% foreign ownership permitted in most sectors
- Strategic location bordering Saudi Arabia, Iraq, Israel, and the Palestinian territories
- Highly educated, English-proficient workforce at competitive wages
- Access to Aqaba SEZ with 5% flat income tax, 0% customs duties, and 7% GST
- Free trade agreements with the US, EU, and Arab states open export opportunities
- Standard 20% corporate tax rate is moderate โ not a low-tax jurisdiction
- 16% general sales tax (VAT equivalent) is among the highest in the region
- Small domestic market of ~11 million with limited consumer purchasing power
- Some service and trading sectors restrict foreign ownership to 50%
- Bureaucracy can be slower than GCC states despite ongoing reform efforts
- Energy costs are relatively high โ Jordan imports most of its energy
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.