Jordan company structures: at a glance

Options for registering companies in Jordan

Jordan is a constitutional monarchy in the Middle East. Its corporate and investment framework supports Jordanian and foreign investment across commercial, professional, industrial and export activities.

Companies are registered through the Companies Control Department and operate under Jordan’s Companies Law and related regulations. Foreign investment is permitted, subject to restrictions and approvals applying to specified activities and investors.

The available entity types vary in legal status, tax treatment, capital thresholds and governance structure, shaping how foreign businesses operate and manage risk locally.

Jordan offers international investors the following legal structures for establishing a local presence:

Limited liability company

A limited liability company is a separate Jordanian legal person whose shareholders’ liability is generally limited to their subscribed capital contributions.

• A limited liability company has legal personality separate from its shareholders. Unlike a branch office, its obligations belong to the Jordanian company rather than its foreign owners.
• The structure is commonly used for general commercial, service, industrial and investment activities. The company conducts business within the purposes recorded at registration.
• The company must appoint the manager or managers and legal representatives required by its constitutional documents.
• The corporate income tax rate depends on the company’s activity and the applicable provisions of Jordan’s Income Tax Law. A universal 20% rate does not apply to every sector.
• The company must register its capital, shareholders, managers and authorised representatives with the Companies Control Department and maintain its statutory company records.
• Unlike a branch office, the company creates a separate legal and liability structure. Activities subject to sector approval cannot start until the competent authority grants approval.

Limited partnership

A limited partnership comprises one or more general partners with unlimited liability and one or more limited partners whose liability is restricted to their agreed contributions.

• A limited partnership does not provide limited liability to every partner. Unlike a limited liability company, at least one general partner is personally liable for its obligations.
• The structure is commonly used for jointly owned businesses in which general partners manage operations while limited partners participate through agreed capital contributions.
• Capital stated in the partnership agreement reflects the partners’ agreed contributions.
• Management rests with the general partner or partners identified in the partnership agreement. Limited partners do not hold the same management position as general partners.
• Tax treatment follows the law and the registered activity.
• The partnership and its partner details must be registered with the Companies Control Department. Changes to partners, management or registered particulars require filing.
• Unlike a limited liability company, the structure does not shield its general partners from business liabilities. It is unsuitable where every participant requires limited liability.

Exempt company operating outside Jordan

An exempt company is registered in Jordan to conduct business outside the Kingdom and must adopt a company form recognised under Jordan’s Companies Law.

• An exempt company is a regulatory status rather than an independent company-law form. Unlike a domestic operating company, its registered business is conducted outside Jordan.
• The structure is commonly used for offshore trading and holding activities. Its operations must remain within the purposes approved under the exempt-company registration.
• Capital follows the requirements of the legal form selected for registration.
• The company must maintain an actual headquarters in Jordan and follow the governance requirements of its underlying legal form. Its name must identify it as an exempt company.
• Tax treatment follows the law and the company’s activities.
• The company pays the annual fee prescribed for its legal form and provides the required bank guarantee. At least half of its personnel working in Jordan must be Jordanian.
• Unlike a domestic operating company, an exempt company conducts its approved business outside Jordan. Its registration does not authorise unrestricted domestic trading.

Free zone establishment

A free zone establishment is an enterprise registered to operate within a designated Jordanian free zone under the Investment Environment Law and its implementing regulations.

• A free zone establishment retains the legal form under which it is registered. Unlike an exempt company, its defining attribute is authorised activity within a designated zone.
• The structure is commonly used for manufacturing, storage, logistics and export activities. Goods enter and leave the zone under the applicable investment and customs controls.
• Capital follows the legal form, activity and licensing requirements.
• The establishment must satisfy the technical, health, regulatory, environmental and public-safety requirements applying to its activity and maintain the required licence.
• Tax treatment depends on the activity and the provisions of the Income Tax and Investment Environment laws.
• The establishment must maintain its zone registration and records for goods entering or leaving the zone. Goods released to the local market remain subject to applicable rules.
• Unlike an unrestricted domestic company, a free zone establishment operates within zone controls. Movement of goods into Jordan’s customs territory follows separate requirements.

Operating foreign company branch

An operating foreign company branch is a registered establishment of a foreign company and does not have legal personality separate from its overseas parent.

• A branch office is not a separate legal entity from the foreign company that registers it. Unlike a limited liability company, its liabilities remain with the foreign parent.
• The structure is commonly used by foreign companies undertaking approved contracts, projects or other authorised activities in Jordan through a registered local establishment.
• The foreign company must appoint and register an authorised branch representative. The register identifies the parent company, branch address and authorised representative.
• Jordanian-source income is taxed under the Income Tax Law at the rate applying to the branch’s activity. A universal 20% rate cannot be assigned without sector classification.
• The branch must register with the Companies Control Department and meet applicable accounting, tax and filing requirements. Its records remain linked to the foreign parent.
• Unlike a Jordanian limited liability company, the branch creates no separate liability shield. It cannot operate outside the foreign company’s registered and approved purposes.

Comparison of the common types of companies in Jordan

Information verified against Jordan Companies Control Department, Invest Jordan, Ministry of Investment and Jordan Income and Sales Tax Department.

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