Jordan has made major economic reforms over the last year, propelling it from 104th place last year to 75th out of 190 economies in the Doing Business rankings for 2020. This is Jordan’s best placing in more than a decade.
Enhancing the legal rights of borrowers and lenders was one of Jordan’s major reforms. The nation launched a geographically consolidated, uniform, and notice-based collateral registry as well as an integrated legal framework for secured transactions. Through the provision of credit scores to banks, financial institutions, and borrowers, Jordan’s private credit bureau expanded access to credit information as part of this area’s reforms. As a result, Jordan received a Doing Business score of 95 out of 100 for the ease of obtaining credit, ranking fourth overall, trailing only the United States and Australia.
How to determine the kind of business to register
Depending on the type of legal business structure you select, the registration procedure may vary. You can register your small business in Jordan using one of the primary legal business structures listed below.
Individual establishment
The individual establishment is the most basic type of organization. You can open a single establishment by requesting a permit from the Ministry of Industry and Trade’s Central Registration Directorate or the Commercial Registrar in locations outside of Amman. Legally speaking, this kind of business is not considered to be distinct from the owner, and as a result, the owner does not have limited responsibility. This implies that the owner is personally liable for all monetary, legal, and administrative expenses made by the company.
Capital: JD 1,000 is the minimal amount needed. When applying to open a specific establishment, you are not required to present proof of capital; nevertheless, the registrar may, at their discretion, ask to see the paperwork.
General partnership company
At least two owners are required for a general partnership business. No owner has restricted culpability because they are all liable to the company. Lawyers are not necessary for general partnerships unless the company’s capital reaches JD 50,000. From 2 to 20 partners may participate. At least 18 years of age is required for each companion.
Capital: JD 1,000 is the minimal amount needed.
Limited partnership company
This type of business form permits both general partners and limited partners (exactly like general partnership companies) (just like Limited Liability Companies).
- General partners do not have limited liability and are in charge of running the company daily.
- Limited partners invest in the business’s capital but are not allowed to participate in its management. They can only possess their firm shares.
From 2 to 20 partners may participate. Lawyers are not necessary for limited partnerships unless the company’s capital reaches JD 50,000.
Limited liability company
In general, limited liability organizations (LLCs) have more intricate structures. Because of this, LLCs must have an auditor and, if their capital reaches JD 20,000, a lawyer. (Note: The attorney must submit documents proving that they are the business’s legal representative.) Limited partners include all partners. Although an LLC typically has two or more owners, if there is just one owner, you will need the Company Controller at the Companies Control Department’s approval. There is no cap on the number of owners (or shareholders).
Capital: JD 1 is the bare minimum amount needed to launch this business.
Private shareholder company
Private shareholding firms are limited liability organizations that do not sell or exchange their stock on a public exchange for the general public. The equity of the corporation is instead privately offered, held, and exchanged. Either non-governmental groups or a relatively limited number of stockholders often own them. A lawyer and auditor are essential for private shareholding corporations.
Capital: JD 50,000 is the bare minimum needed to launch this business.
