The Share Capital in Jordan

The Companies Law of 1997 in Jordan confers the legal frame for setting up various types of legal entities by foreign entrepreneurs. The most popular companies which are opened by foreigners in this country are the limited liability company, the private shareholding company and the public shareholding ones. 

In this article, our company formation agents in Jordan explain what the share capital of various legal entities in Jordan is.

The share capital of a limited liability company in Jordan

A limited liability company (LLC) in Jordan can have a single shareholder (with the approval of the Companies Controller) or several shareholders. The nominal value of every share is JD 1 (USD 1.4) and only one class of shares is allowed.

Thepaid-up capital for such a company at the point of the company registration in Jordan has to be of minimum 50% of its entire share capital, and the other 50% has to be paid within 60 days from the registration date (rule in force since 1 April 2024).

The foreign entrepreneur, though, is no longer obliged to contribute a minimum of JD 50,000: this requirement for non-Jordanian investors was abolished in 2016.

The company can be managed by only one managing director or by a board of directors comprised of two to seven members.

The public limited company in Jordan

A public limited company (LTD) in Jordan must have one shareholder, who was previously agreed upon by the Companies Registrar Commissioner and a paid-up share capital of minimum USD 100,000. 

Foreign investors are able to open such a company in Jordan, however, they no longer have to contribute a minimum share capital (the JD 50,000 rule for foreign investors was abolished in 2016) and they are required to form a joint venture with a local citizen, if they intend to invest in restricted sectors.

The non-operating foreign company

The procedure of company registration in Jordan of such a legal entity is much simpler than that of an LLC.

The main criteria for such a company registration here is the presence of a founder and of a director, the conclusion of a lease agreement and a minimum charter capital of USD 1.

Simultaneously, the local legislation offers non-residents in Jordan no minimum investment condition (the former JD 50,000 minimum for non-Jordanians was abolished in 2016) for this type of company.

If you have more questions about the minimum share capital in Jordan, or for assistance in starting a business in Jordan, please do not hesitate to contact us.