Company Formation in Jordan

• International Business Setup

Equal treatment in principle, with the detail in the regulation

Investment Environment Law No. 21 of 2022 treats Jordanian and non-Jordanian investors equally in rights and obligations, and allows investment through full ownership or partnership. But Investment Environment Regulation No. 7 of 2023 limits foreign ownership in common activities such as trade, distribution and contracting, and closes others entirely. So the first question in Jordan is: is your activity fully open, or capped?

You deal with LegalIn alone, from Egypt. We handle the in-country steps through our network of offices there, so you do not need to engage another firm.

• Is this route for you?

  • Investors targeting the Jordanian market with an industrial or service activity.
  • Egyptian companies that want an entity in Jordan.
  • Projects that need a Jordanian partner and want the relationship organised from the start.

• Foreign ownership and investment regime

Open in principle, capped in common activities

ItemDetails
Ownership100% in principle, unless the activity is capped or closed by regulation
Legal basisInvestment Environment Law 21/2022, and Investment Environment Regulation No. 7 of 2023
Foreign ownership below 50% (Article 11 of the Regulation)Wholesale and retail trade including distribution, import and export; engineering consultancy; construction contracting; brokerage; commercial agents and intermediaries; food and beverage services (except tourist restaurants and hotels); and most land, sea and air transport services
Closed to non-Jordanians (Article 13)Bakeries, customs clearance, security, guarding and investigation, trade in weapons and fireworks, quarries and stone cutting
Easing the limitsThe Council of Ministers may ease them on the Minister’s recommendation (Article 12)
RegistrationGenerally no prior approval from another body (Article 35 of the Law), through the Ministry of Investment’s comprehensive investment service

If your activity is trade or distribution, full ownership is not available in principle and you will need a majority Jordanian partner. That shapes the company form and the partners’ agreement from the start.

• How we handle the file

From Egypt to incorporation

  1. Matching the activity against the Investment Environment Regulation.
  2. Choosing the form and ownership structure, and a partners’ agreement if a Jordanian partner is needed.
  3. Preparing, notarising and attesting documents.
  4. Registering and completing the licences the activity needs.
  5. Post-registration steps, including hiring.

• Before we start

What we need to know

  • Your exact activity, and who and where your customers are.
  • The partners and their nationalities, and whether the investor is an individual or a company.
  • Whether you need a physical office or staff in Jordan.
  • How the new entity relates to your company in Egypt, if any.

This tells us the route and the document list; documents vary with the activity and the partners’ nationalities.

• Common pitfalls

What can delay the file?

Assuming equal treatment means every activity is open without checking the regulation.

Entering a trading activity with full ownership, then finding it is capped below 50%.

Registering the company without completing the activity licences.

Ignoring the legal cap on non-Jordanians in specialised administrative and technical jobs when planning hiring.

• FAQ

Questions we often hear before setting up in Jordan

Can a non-Jordanian fully own a company?

Yes in principle, but in wholesale and retail trade, distribution, contracting, engineering consultancy and most transport services foreign ownership is limited to below 50%, and some activities are closed.

Does registration need prior approval?

Usually not, but some activities need sector licences.

How are disputes resolved?

The law allows arbitration in investment contracts with official bodies; we review the dispute clause in your contracts from the start.

Do I need a firm in Jordan?

No. You deal with LegalIn, and we coordinate with our network of offices there.

• Your next step

Considering Jordan?

Send us your activity and partners’ details. We review the right route and get back to you on the next step.

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