How to Establish a 100% Foreign-Owned Company in Jordan and Maximize Available Tax & Investment Incentives
If you are a foreign entrepreneur, multinational company, family office, or international investor considering expansion into Jordan, one of your first questions is likely to be:
Can I establish and own a company in Jordan without a Jordanian partner—and how can I structure the investment to obtain the maximum legally available tax and investment incentives?
In many sectors, the answer is yes. Jordan’s current investment framework generally allows foreign investors to establish businesses with 100% foreign ownership, except in sectors subject to specific restrictions.
The Ministry of Investment also confirms that there is no general minimum capital requirement for registering a foreign investment project under the Investment Environment Law and the Regulation on the Organization of Foreign Investments.
But 100% ownership is only the starting point. The more important question is whether your company is structured to take advantage of the investment incentives, tax treatment, customs benefits, development-zone incentives and regulatory protections available to your particular business.
This guide explains what foreign investors should consider before establishing a wholly foreign-owned company in Jordan.
Can a Foreigner Own 100% of a Company in Jordan? Can I establish and own a company in Jordan without a Jordanian partner—and how can I structure the investment to obtain the maximum legally available tax and investment incentives? How to Establish a 100% Foreign-Owned Company in Jordan?
Jordan’s Ministry of Investment states that, except for a limited number of restricted sectors, foreign investors may choose between 100% foreign ownership and partnership with Jordanian investors.
Foreign investors generally receive the same rights and privileges as Jordanian investors, subject to applicable legislation and sector-specific restrictions. This means that a foreign investor may not necessarily need to:
- Find a Jordanian shareholder.
- Give away equity to a local partner.
- Create an artificial nominee structure.
- Sacrifice control of the company.
However, foreign ownership restrictions can apply to particular economic activities.
The First Legal Check: Your Business Activity
Before incorporating, determine exactly what the Jordanian company will do. The legal analysis should cover:
- The precise economic activity.
- Applicable foreign ownership restrictions.
- Sector-specific licensing.
- Regulatory approvals.
- Required local qualifications or conditions.
- Whether additional approvals are required for the foreign shareholders.
Do not assume that an activity is unrestricted simply because another foreign investor operates a 100%-owned company in Jordan. The applicable rules can depend on the specific activity and regulatory classification.
What Is the Best Company Structure for a Foreign Investor?
For many investors establishing a new operating business, a Jordanian Limited Liability Company (LLC) may be an appropriate structure. An LLC can provide a separate Jordanian legal entity through which the investor can:
- Conduct business.
- Employ personnel.
- Enter commercial contracts.
- Hold assets.
- Acquire intellectual property.
- Open corporate banking relationships.
- Obtain licenses.
- Build a long-term Jordanian operation.
Jordan’s Companies Control Department provides for the registration of LLCs and requires incorporation documents setting out matters including the company’s name, objectives, registered office, shareholders and capital.
However, an LLC is not automatically the optimal structure.
Depending on your circumstances, you may instead consider an operating foreign company, particularly if you already have an established international corporation that wants to operate directly in Jordan. The appropriate structure should be selected based on your:
- Ownership objectives.
- Liability considerations.
- Tax position.
- Financing structure.
- Regulatory requirements.
- Planned activities.
- Exit strategy.
- Relationship with the overseas parent company.
Can You Establish the Company Without Travelling to Jordan?
Potentially, yes. Jordan’s Ministry of Investment confirms that a foreign investor residing outside Jordan can establish a company by granting a power of attorney to an agent in Jordan to complete the incorporation procedures. This can be particularly useful for:
- Overseas entrepreneurs.
- International corporations.
- Family offices.
- Foreign shareholders.
- Regional companies establishing a Jordanian subsidiary.
The practical process may involve preparing and legalizing corporate or personal documents, translating documents into Arabic where required, and completing the relevant government procedures.
For an overseas investor, having a Jordanian lawyer coordinate the process can significantly reduce administrative friction.
Step-by-Step: How to Establish a 100% Foreign-Owned Company in Jordan
Step 1: Determine Whether Your Activity Allows 100% Foreign Ownership
This should be your first step—not the incorporation application.
Your legal counsel should identify:
- Your exact economic activity.
- The applicable classification.
- Foreign ownership restrictions.
- Sector-specific approvals.
- Licensing requirements.
- Any nationality or investment conditions.
If the activity permits full foreign ownership, the corporate structure can then be designed accordingly.
Step 2: Choose the Appropriate Legal Vehicle
For many investors, this will be a Jordanian LLC. However, an operating foreign company may be more appropriate where the overseas parent wants to maintain direct responsibility for Jordanian operations.
The choice can affect:
- Corporate governance.
- Tax treatment.
- Investment incentives.
- Future restructuring.
Corporate structure should therefore be part of your investment strategy—not simply an administrative decision.
Step 3: Prepare the Foreign Investor’s Documents
Foreign shareholders should expect additional documentation compared with a purely domestic incorporation. Depending on the structure, documents may include:
- Passport or identification documents.
- Corporate registration documents.
- Memorandum and Articles of Association.
- Board or shareholder resolutions. Power of attorney. Evidence concerning authorized signatories.
- Financial statements for foreign corporate shareholders where applicable.
- Regulatory approvals.
Foreign corporate documents may require authentication, legalization and certified Arabic translation. The exact documentation depends on the investor’s structure and the proposed activity.
Step 4: Register the Company
Company registration is handled through the relevant Jordanian authorities, with the Ministry of Investment providing a Comprehensive Investment Service to facilitate investment registration and licensing.
The Ministry states that investors can register companies, obtain investment licenses and access related government services through its electronic platform. Once the company has been incorporated, additional registrations and licenses may still be required.
Step 5: Obtain the Required Business Licenses
Your company may require additional approvals depending on its activities.
Company incorporation does not necessarily mean that you are legally authorized to commence your specific business activity.
The legal review should therefore continue after incorporation. Your objective is not merely to obtain a commercial registration. It is to ensure that the company is fully operational from a regulatory perspective.
Step 6: Register for Tax and Other Compliance Requirements
Once operational, the company will need to address its applicable tax and regulatory obligations. Depending on the business, this may include:
- Income tax.
- General sales tax.
- Payroll-related obligations.
- Social Security.
- Corporate accounting.
- Statutory reporting.
This is where early legal and tax planning becomes particularly important. The objective should not be to look for an artificial way to avoid tax. The objective is to determine which lawful incentives and exemptions your investment qualifies for and how to structure the business so that those benefits are preserved.
