Although at Homes Jordan we specialize in real estate matters, our vision in the investment sector encompasses all various economic sectors. Today, we will shed light on the conditions and privileges for foreigners to own a company in Jordan. We have previously discussed real estate investment in Jordan and its benefits for both citizens and non-Jordanian foreigners in our articles. You can refer to them through the following links:
Granting Jordanian Citizenship to Investors in the Real Estate Sector 2023
Obtaining Residency in Jordan through Property Purchase - Homes Jordan
Foreign investment in Jordan refers to investment conducted within Jordanian territory by individuals who do not hold Jordanian citizenship, regardless of the sector of investment. This investment can also be undertaken by foreign companies licensed outside Jordan and seeking to establish branches within Jordan or manage their operations from within Jordan.
There are specific conditions and requirements for non-Jordanian investors to own a company in Jordan and establish a foreign company within Jordan. Encouraging non-Jordanian foreign investment within Jordan contributes to enhancing and developing the country's economy. In return, Jordanian law provides numerous benefits and incentives to non-Jordanian foreign investors when investing in any sector within Jordan, including applying for residency in Jordan, Jordanian citizenship, and an investor card.
The Jordanian Investment Environment Law states in its general investment policies that "investors have the right to invest in the Kingdom by ownership, participation, or contribution in any economic activity, except for activities restricted by law." Some economic activities allow foreigners to own them entirely, while others are restricted to certain percentages, not exceeding 50%, except with exceptions that can be found in the Invest in Jordan Guide - Licensing Guide.
In addition to ownership rights granted to non-Jordanian investors within Jordan, there are also incentives for investors. They have the right to purchase fixed assets through leasing and finance, open additional branches, or transfer their economic activity from one area to another and transfer the ownership of the activity to another investor.
The Jordan Investment Commission encourages attracting foreign investments within Jordan by facilitating the establishment procedures of these companies under certain conditions. In return for this investment, the Jordanian state provides them with various investment advantages. These conditions are as follows:
- Proof of being a foreign person by presenting a valid passport.
- The shares of the applicant in the registered capital of the company should not be less than 50,000 Jordanian Dinars.
- The project owned by the investor should provide at least 10 permanent job opportunities for Jordanians, which are permanent and have added value for Jordanians, proven through social security records.
The Investor Card is one of the most important privileges granted by the Jordanian government to non-Jordanian foreign investors. Three categories of Investor Cards have been issued, granted to non-Jordanian foreign investors according to their capital or the total shares in the company. The benefits of the Investor Card for non-Jordanian foreigners are:
- The issuance of this card acts as a license granted by the Jordanian government, valid for all official departments in the country to facilitate their transactions.
- The cardholder is entitled to own properties in Jordan.
- The cardholder is entitled to obtain driving licenses and purchase vehicles exempt from customs duties.
- The cardholder is entitled to temporarily import their country's vehicles into Jordan.
- The card provides ease of entry and exit from Jordan.
- Investor Card Type (A): Granted to all nationalities except Syrian nationality.
1. The shares of the applicant in the registered capital of the company / or the group of companies in which they own shares should not be less than 150,000 Jordanian Dinars.
2. The project / group of projects owned by the investor should provide at least 40 permanent job opportunities with added value for Jordanians, proven through social security records.
3. The investment should have commenced the operational or production phase.
An application for obtaining an Investor Card Type A can be submitted through the Investor Card Application or its renewal / Type (A) link.
1. The shares of the applicant in the registered capital of the company in which they own shares should not be less than (50,000) Jordanian Dinars.
2. The project owned by the investor should provide at least (10) permanent job opportunities with added value for Jordanians, proven through social security records.
3. The first three partners benefitting from the grant of a Type (B) card must have the first 10 workers, and any subsequent partner must provide additional workers in proportion to 33%.
4. Industrial companies with export capacity of 100,000 Jordanian Dinars or more annually, proven in an official manner, are eligible to obtain Investor Card Number 2 for every five Jordanian workers, regardless of their duration of registration in social security. If it exceeds two cards, the increase will be proportional to the basic conditions.
5. The investment should have commenced the operational or production phase.
An application for obtaining an Investor Card Type B can be submitted through the Investor Card Application or its renewal / Type (B) link.
You can find additional details about the Investor Card through the article "Obtaining an Investor Card in Jordan - Homes Jordan."
Now that we've discussed foreign ownership of companies in Jordan, let's take a quick look at another aspect of investments: the types of foreign companies in Jordan.
• Foreign companies registered in Jordan for a limited period: These foreign companies are registered in Jordan for a limited period, which is the duration of executing the tenders assigned to the company for its tasks and operations. Their registration ends when the company's work ends. If new tenders are assigned to them, the company's registration remains valid in Jordan.
• Foreign companies registered in Jordan permanently: These are branches of major companies headquartered outside Jordan, subject to income and sales taxes, as well as fees and expenses.
• Companies that use Jordan as their headquarters and manage their operations located outside Jordan. However, they are prohibited from conducting any commercial activities within Jordan, including acting as agents or commercial brokers.
• Customs exemptions, such as exemptions on fixed assets or spare parts from customs duties depending on the type and amount of investment.
• Tax facilitations, where income tax is applied to taxable income for companies operating in specific sectors, with tax exemptions and social service exemptions.
• Exemptions from income tax and social services.
• Investment guarantees, where the non-Jordanian foreign investor is treated like a Jordanian investor, granting them full ownership rights over the company and enjoying all privileges and rights ensuring the continuity of investment and its management as they deem appropriate.
It's worth noting that Jordan provides a fertile environment for investment in all its forms, possessing multiple factors that encourage non-Jordanian foreign investors to choose Jordan for investment and the development of their businesses worldwide.
All rights reserved for the article belong to Homes Jordan - 2024.
Sources:
• Ministry of Industry, Trade, and Supply: https://www.moin.gov.jo/Default/Ar/
• Milhem & Associates Law Firm: https://www.milhemlaw.com/investment-2#:~:text=بطاقة%أ20المستثمر%20فئة%20أ%20تعتبر,هذه%20البطاقة%20كافة%20التسهيلات%20لحاملها.
• Jordan Government Portal: https://portal.jordan.gov.jo/wps/portal/Home/GovernmentEntities/Ministries/MinistryServiceDetails_ar/ministry%20of%20industry%20and%20trade/companies%20control%20department/services/service41?lang=ar
Al-Rawnaq
01-Sep-2024
Prince Rashid Suburb
21-Aug-2024
Preemption in Jordanian Law
18-Aug-2024
Abdoun Corridor
06-Aug-2024
JOD
AED
USD