Jordan

Operating a business

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
A Private shareholding company is a joint-stock company with limited liability.	Minimum 2. Maximum 50 shareholders.	Minimum 30 000 JD. 50% must be subscribed at the constitution and 50% within two years.	Liability is limited to the amount contributed in capital.	0.1% of the capital and 0.3% for stamp duties.
A Public shareholding company is the equivalent of the Public Limited Company.	Minimum 2. No maximum	Minimum 500 000 JD. 25% must be subscribed at the constitution and 75% within 4 years.	Liability is limited to the amount contributed.	0.1% of the capital and 0.3% for stamp duties.
Limited partnership	No minimum. Maximum 20 shareholders.	No minimum capital.	One of the partners must have liability for the amount he contributed in the capital.	250 JD if the capital of the parent company does not exceed 1 million JD, otherwise expenses add up to 500 JD.
General partnership	From 2 to 20 partners	No minimum capital.	Partners' liability is several and unlimited for the debts of the company.	250 JD if the capital of the parent company does not exceed 1 million JD, otherwise expenses add up to 500 JD.

Business setup procedures: Registration of a company is carried out with the Controller of Companies (Department of Industry and Trade). The formalities have been simplified since there is a one stop shop system for registering foreign companies. Companies must also register with the competent Chamber of Commerce and Industry, with the Tax department and the Social Security office. They must also obtain an annual license from the town council they depend on. Finally, industrial projects must receive a certificate of industrial registration from the Department of Industry and Trade after having completed a dossier at the department of industrial development.
The competent organization: The Department of Trade and Industry, the tax department, the social security office and the Town Council where the company has set up business are the competent organizations for registering a company.

Legal weekly duration: 8 hours a day, 48 hours a week.
Retirement age: 60 for men and 55 for women.
Working contracts: Jordanian labor law is governed by the law of 1996 and its amendments. The law is completed by application regulations. If a more profitable collective agreement exists, this is the one that will be applied. The work contract must be drawn up in duplicate in Arabic. There are three types of work contract, the open-ended contract, the fixed-term contract, and the apprenticeship contract.

Minimum wage: 110 JD (154 USD)
Average wage: 200 JD
Social contributions: Social security contributions paid by employers: 10%
Social security contributions paid by employees: 5%

Bargaining power: There are 17 unions in Jordan, all affiliated to the General Federation of Jordanian Trade Unions (GFJTU), the only organization recognized and subsidized by the State.
Unions: Ministry of Labor website, page dedicated to workers' complaints
Unionization rate: About 30% of the active population is unionized.
Labor regulation bodies: Jordanian Ministry of Labor