Company registration in Jordan: A step-by-step guide

Jordan is a logistics and services hub in the Levant, offering strong links to GCC markets, preferential access to EU trade, and a skilled workforce. Investors benefit from predictable taxation, a stable dollar-pegged currency, and designated economic zones offering a reduced corporate income tax (CIT) rate of 5%–10%.

At the same time, businesses should carefully consider compliance obligations. These include foreign ownership restrictions in certain sectors, VAT registration thresholds, mandatory social security contributions, and the upcoming 2025 e-invoicing requirement.

For companies seeking market entry without establishing a local entity, an Employer of Record (EOR) service offers a compliant solution. This approach enables organizations to hire local talent while meeting all legal requirements and, if necessary, transition to a permanent entity.

Business benefits of company registration in Jordan

Here’s a quick snapshot of why establishing a company in Jordan is worthwhile.

• Tax and zone incentives: Corporate income tax (CIT) of 5% in the Aqaba Special Economic Zone (ASEZ) and 5%–10% in Development Zones (subject to activity and local value-add tests). Zero-rated VAT applies to qualifying exports.
• Streamlined setup: Companies Control Department (CCD) e-services support incorporation, and the Ministry of Investment’s “Investment Window” consolidates licensing to reduce coordination time.
• Currency stability: The Jordanian dinar’s long-standing peg to the US dollar supports predictable budgeting and payroll.
• Clear legal framework: The Investment Environment Law (2022) protects investor rights, and the sector “negative list” clearly defines restricted activities.

Next, we’ll outline a step-by-step guide for company registration in Jordan and explain the role of an EOR so that you can choose the fastest and lowest-risk route.

A step-by-step guide to registering a company in Jordan

The core flow involves choosing your business structure, reserving the company name, filing with the CCD, registering for tax/VAT and social security, opening a bank account, and securing the necessary licenses and local registrations. The filings can be completed online, in person, or through a local attorney.

Step 1: Choose your business structure

Before starting the registration process, you must decide on the legal structure that aligns with your ownership goals, capital requirements, and long-term growth strategy.

Limited Liability Company (LLC)

• The most common structure for SMEs in Jordan.
• Flexible ownership arrangements; no statutory minimum capital for Jordanian investors (sector-specific rules may apply).
• From April 2024, 50% of declared capital must be paid at incorporation, with the balance due within 60 days.

Private Shareholding Company (PSC)

• Designed for growth companies seeking flexible share classes and governance structures.
• Suitable for businesses that plan to scale but do not intend to list publicly.

Public Shareholding Company (PLC / JSC)

• Used by large enterprises aiming to access public capital markets.
• Governed by the Jordan Securities Commission and the Securities Depository Center (SDC).

Branch or Representative Office (Foreign Company)

• Branch: Permitted to conduct commercial activities in Jordan.
• Representative office: Restricted to non-trading functions such as marketing and R&D.
• Licensing depends on activity type; applications go through the Investment Window.

Partnerships (General or Limited)

• Common for professional services and specialized ventures.
• Liability and governance vary depending on the partnership type, as defined by the Companies Law.

Step 2: Reserve your company name (CCD e-Services)

Search and reserve a unique name via the CCD portal, then proceed to online filing or submit in person. Forms and fees are centralized on CCD. 

Step 3: Prepare incorporation documents and file with CCD

To complete incorporation, you must submit a standard set of documents to the CCD.

Typical requirements include:

• Articles and Memorandum of Association
• Shareholder IDs/passports and details
• Director IDs/passports and consent (if required)
• Share capital structure
• Sector-specific approvals (if applicable)
• Proof of registered office address

Submission: File via CCD e-Services or through a notary/attorney. Once approved, you receive the Certificate of Registration.

Step 4: Open a corporate bank account and deposit capital

Open a local account and pay 50% of the company’s registered capital at incorporation (balance within 60 days), as per the 2024 amendments to the Companies Law.

Step 5: Register for taxes and (if applicable) VAT/GST

Register with the Income and Sales Tax Department (ISTD) for a Tax Identification Number (TIN).

• General Sales Tax (GST): Standard rate 16%.
• Thresholds:
  • Services: $42,300
  • Goods: $105,000
• Reduced rates: Essentials (e.g., food, medicine) taxed at 4%–8%.
• Exports and free zones: Supplies may be zero-rated if conditions are met.
• Upcoming change: From 1 April 2025, e-invoicing via JoFatora becomes mandatory for GST-registered businesses.

Step 6: Register for Social Security (SSC)

Enroll employees with the Social Security Corporation (SSC).

• Employer contribution: 14.25% of gross salary.
• Employee contribution: 7.5% of gross salary.
• Optional occupational injury insurance can add ~2%, but the above are the standard mandatory rates.

Step 7: Obtain sector licenses, municipal/workplace permits, and chambers

Depending on the activity, you may need to obtain municipal licenses, zone permits, or register with the chamber. You can always use the investment window to coordinate your efforts.

Cost of registering a business in Jordan

Here’s a closer look at the cost of registering a business in Jordan across key areas.

Registration / CCD filing fees

• LLC: about $425
• PSC: about $1,130
• Foreign branch: about $1,410
• Name reservation and certificates: about $15–$20

Share capital deposit

• No fixed minimum for locals.
• 50% of declared capital due at incorporation, balance within 60 days.

Legal, notary, translation, and legalization

• Around $15–$100+ per document, depending on language and authentication requirements.
• Issuance of registration certificate: About $21.

Registered office/address

Virtual business address in Amman: $56–$167 per month.

Accounting, compliance, and legal maintenance

• Annual audit/financial statements: Typically $300–$1,000+.
• Late filings (e.g., board minutes): About $1.40 per day of delay.

Payroll / social security/tax compliance

• Employer social security: 14.25% of gross salary.
• Employee social security: 7.5% of gross salary.
• Plus payroll tax withholding and GST compliance costs.

Taxes

• Corporate Income Tax (CIT): 20% standard; 24% for telecom, insurance, mining, electricity, financial services; 35% for banks.
• National Contribution Tax: 1%–7% depending on profits and sector.
• General Sales Tax (GST): 16% standard; 4%–8% for essentials; exports and free-zone supplies are zero-rated.

Here’s how traditional registration compares with EOR services based on current fees:

Remember, working with an EOR always gives you an edge, as we help aggregate setup, payroll, tax, and HR administration into a single, predictable fee, avoiding entity capex and local vendor fragmentation.

How an Employer of Record (EOR) simplifies company registration in Jordan

Expanding into Jordan doesn’t have to start with an entity. With an EOR, you can hire local talent on compliant Jordanian contracts, run payroll in JOD, and meet VAT/SSC obligations for employees without incorporating. It’s ideal for testing demand, executing projects, or bridging time to full registration.

Here are the benefits of hiring Multiplier as your EOR for starting your business in Jordan:

• Fast start: Hire in days, not months.
• Lower upfront costs: No capital deposit, registered address, or local back-office build.
• Payroll and benefits handled: Accurate, on-time pay, tax withholding, and social security.
• Compliance coverage: Local contracts, statutory benefits, leave, and terminations aligned to Jordanian law.
• Scale with flexibility: Ramp up/down or convert to your entity later.

What is the difference between standard company registration and expanding through an EOR in Jordan?

When expanding to Jordan, companies can either follow the traditional incorporation route — filing multiple documents with the CCD, covering associated fees, and meeting capital requirements — or opt for an EOR for a faster, streamlined entry that eliminates administrative burdens.

Compare your expansion options with this comprehensive breakdown:

Cost Comparison: Standard Registration vs. EOR

Business expansion in Jordan involves choosing between setting up a local entity — with associated fees, capital deposits, and compliance requirements — or utilizing an EOR for a faster, lower-risk entry. An EOR streamlines hiring, payroll, and compliance with predictable monthly costs.

• Simplified compliance: Automatic updates to labor laws and SSC rules
• Streamlined payroll: Salaries, SSC contributions, and tax filings handled
• Cost efficiency: Fixed monthly fees vs. variable setup and maintenance

Here’s a detailed cost comparison to help you decide:

Take the stress out of your Jordan expansion with Multiplier

Expanding into Jordan doesn’t have to be complex. With EOR in Jordan, you can hire employees in days without opening a local entity. One contract covers compliant payroll, benefits, and HR—helping you start lean, convert contractors, or scale confidently, with the option to transition to your own entity later.

Key benefits of using Multiplier in Jordan:

• Seamless onboarding: We manage right-to-work checks, compliant contracts, and employee documentation.
• Accurate payroll: Payroll in JOD, with salaries processed, PAYE, SSC, and tax filings handled end-to-end.
• No upfront burden: Skip capital deposits, office space requirements, and multiple vendor coordination.
• Scalable model: Begin small for pilots or contractor conversions, and expand when the business case is proven.
• Smooth transition: When forming a local entity, we ensure employee transfers happen without disruption.
• Dedicated support: Local expertise and responsive assistance keep operations compliant and hassle-free.

Ready to expand into Jordan?

Book a demo with Multiplier today and accelerate your market entry.

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