+962

WHY JORDAN

We have a team of experienced professionals dedicated to supporting all your business requirements—ensuring smooth operations and full regulatory compliance. This strong foundation enables you to confidently establish and grow your business in jordan with efficiency and assurance.

WHY JORDAN?

Jordan, officially the Hashemite Kingdom of Jordan, is a country in the Southern Levant region of West Asia. Jordan is bordered by Syria to the north, Iraq to the east, Saudi Arabia to the south, and both Israel and Palestine (West Bank) to the west. The Jordan River, flowing into the Dead Sea, is located along the country’s western border within the Jordan Rift Valley. Its area was historically part of the Assyrian, Babylonian, Roman, Byzantine, Umayyad, and Ottoman Empires, and it became a British protectorate in 1921. In 1946, it gained its independence and began developing into a modern state. Jordan has a small coastline along the Red Sea in its southwest, separated by the Gulf of Aqaba from Egypt. Amman is the country’s capital and largest city, as well as the most populous city in the Levant. Jordan is a semi-arid country, covering an area of 89,342 km2 (34,495 sq mi) with a population of 11.5 million, making it the eleventh-most populous Arab country.

The country’s economy has been growing steadily since 1990 and reached over $50 billion in GDP in 2023. Jordan instigated a ten-year economic modernization agenda in 2021 with goals of increasing female representation in the labour market, increasing per capita income by 3%, and making the country one of the most competitive in the world. This has encouraged growth, and Jordan’s GDP is expected to increase by 2.6% in 2024. Jordan uses the Jordanian dinar (JOD), which is pegged to the US dollar at a rate of 1 USD = 1.41 JOD. This currency has been stable largely thanks to strong international trade, including a free trade agreement with the US. Jordan’s workforce is one of the most skilled and highly educated in the region, and it exports many workers to its neighbours. However, employing Jordanians is still very affordable for most foreign-based firms. The minimum wage in Jordan is mandated at 260 JOD/month (roughly 366 USD). Middle-class, skilled workers will make salaries in the range of 400-600 JOD/month (565-845 USD/month). Even though employers pay 14.25% contributions to social security, employees here are still very affordable. 

ADVANTAGES

Strategic Location & Market Access:

Bridges Europe, Asia, and Africa, with good relations to the EU, US, and Gulf States, facilitating regional trade.

Investor-Friendly Regulations

Equal treatment for foreign investors, full ownership in most sectors, guaranteed national treatment, and protection against expropriation.

Tax Incentives & Zones:

• Development & Free Zones: Offer 100% foreign ownership, duty-free imports, and reduced corporate tax (e.g., 5% in Aqaba Special Economic Zone).
• Income Tax: Exemptions or reductions available for investments meeting specific criteria (e.g., local employment).

Skilled & Competitive Workforce

A young, well-educated population with a growing tech focus, supported by strong universities.

Economic Stability & Support:

Politically stable, enjoys international financial support, and has sound economic policies.

Ease of Doing Business:

Streamlined registration (Jordan Investment Commission), facilitated permits, and modern infrastructure, improving rapidly in global rankings.

Key Sectors:

Strong potential in ICT, logistics, tourism, and natural resources (potash, phosphate, minerals).

Capital Flow:

Free movement of capital and repatriation of profits.

TAX REGIME

Individual Taxation

  • Progressive Rates: 5% to 30% on annual taxable income.
  • National Contribution: An additional 1% on income over JOD 200,000.
  • Exemptions: Certain pension amounts, disability allowances, and first JOD 1 million from agricultural activity.
  • Capital Gains: Generally tax-exempt, except for depreciable assets or specific share sales.

Corporate Taxation

  • Standard Rate: 20% (21% with National Contribution).
  • Territorial Aspects: Jordanian companies taxed worldwide, but income from Jordanian deposits taxed at 10%; foreign branches taxed at 10%.
  • Foreign Companies: Taxed via withholding tax, with specific rates for royalties/technical fees.

Other Taxes

  • Excise Duties: On goods like tobacco, cars, oil, and cement.

JORDAN COMPANIES

Common Local Entities:

  • Limited Liability Company (LLC/WLL): Most popular for investors, offering limited liability, can have one shareholder, and has low capital requirements (as low as 1 JOD in some cases).
  • Private Shareholding Company (PSC): For private investment, minimum capital of 50,000 JOD, with liability limited to capital contribution, allowing flexibility in articles.
  • Public Shareholding Company: For larger ventures, shares can be public, requiring higher capital (e.g., 500,000 JOD).
  • General Partnership: At least two partners, fully liable, with names in the company name.
  • Limited Partnership: Combines fully liable general partners with limited partners.
  • Limited Partnership in Shares: Blends partnership and shareholding.
  •  

For Foreign Businesses:

  • Branch Office: An extension of a foreign parent company, with the parent assuming liability, for operating in Jordan.
  • Representative Office: A regional office for foreign firms, offering tax/duty exemptions but limited activities.
  • Offshore Company (Exempt Company): Registered in Jordan but conducts business outside, with specific capital/investment rules.

Other Types:

  • One Person Company: Can be formed as an LLC.
  • Mutual Fund Company: Can be structured as a Public Shareholding Company.

RELATED BLOGS

Contact Us

Get in touch with the right people to get the right help in setting up your business in Jordan

Our Links

Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.

Copyright © 2026 Chandrawat & Partners. All rights reserved.
💬 Leave a Message

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

ASIA

AFRICA

EUROPE

NORTH AMERICA

SOUTH AMERICA

OCEANIA