Setting Up a Company in Jordan
Jordan's Investment Environment Law permits 100% foreign ownership in most sectors, and the Aqaba Special Economic Zone offers the region's most competitive tax package. Here is how it works in 2026.
Jordan is a mid-size Levantine economy with a well-educated workforce, a strategic position between Saudi Arabia, Iraq, Syria and Israel, and a growing technology sector — particularly in Amman. The Investment Environment Law No. 30 of 2014 (as amended) permits 100% foreign ownership in most sectors. Registration is handled through the Companies Control Department (CCD) and the Jordan Investment Commission (JIC).
Key facts for 2026
| Parameter | Detail |
|---|---|
| Corporate income tax | 20% (standard); 35% for banks; 24% for telecoms and insurance |
| VAT (General Sales Tax) | 16% (standard rate) |
| Foreign ownership | 100% in most sectors |
| Minimum capital (LLC) | JOD 1 (no practical minimum for most activities) |
| Aqaba ASEZA rate | 5% flat corporate tax within the special economic zone |
Corporate structures
The LLC (Limited Liability Company, Sharikat Massoulia Mahdouda) is the standard vehicle — it can have 2–50 shareholders and no mandatory minimum paid-up capital for most activities. A PLC (Public Shareholding Company) is required for banking, insurance and listed entities with minimum capital of JOD 500,000 or more depending on sector. Foreign companies can register a branch for specific project purposes, typically linked to a government contract.
Aqaba Special Economic Zone (ASEZA)
Aqaba is one of the region's most attractive free-zone propositions: a 5% flat corporate tax, no customs duties on goods in transit or imported for re-export, 7% GST in the zone (vs 16% nationally), 100% foreign ownership, and full profit repatriation. It is Jordan's only sea port and sits at the northern tip of the Red Sea, giving direct access to global shipping lanes. Aqaba is used by logistics, tourism, manufacturing and trading companies serving regional markets.
Technology and startup ecosystem
Amman hosts Jordan's growing tech sector, with the Jordan Free Zones Corporation (JFZC) administering free zones in Al-Zarqa, Sahab and Queen Alia Airport. Startups and SMEs in approved technology activities can access JIC incentives including income tax exemptions for the first three years of operation and subsidised land and utilities in development zones.
The incorporation process
- Register the company name and Articles of Association with the Companies Control Department (CCD) — fully online via the Investor Services Centre portal.
- Obtain a Commercial Registration certificate.
- Register with the Income Tax and Sales Tax Department at the Ministry of Finance.
- For JIC incentives: submit an investment application to the Jordan Investment Commission for review.
- Open a corporate bank account at a licensed Jordanian bank.
- Register with the Social Security Corporation for employees and obtain work permits for non-Jordanian staff.
- For ASEZA: register directly with ASEZA and obtain the relevant zone operating licence.
Frequently asked questions
Can a foreigner own 100% of a Jordanian company?
Yes, for most sectors under the Investment Environment Law. Restricted sectors — broadcasting, publishing, certain professional services requiring Jordanian citizenship — retain local-ownership requirements. The JIC publishes the restricted sectors list.
What is the corporate tax rate in Jordan?
20% standard rate. Banks pay 35%; telecoms and insurance companies pay 24%. Entities in Aqaba ASEZA pay a flat 5%. JIC-approved projects in development zones may receive partial tax holidays for up to 10 years.
What is GST (VAT) in Jordan?
Jordan's General Sales Tax (GST) is effectively its VAT, charged at 16% nationally and 7% within the Aqaba special zone. Basic food, medicine and certain services are zero-rated or exempt.
What makes Aqaba attractive for foreign investors?
A 5% corporate tax rate, zero customs on transit goods, 7% GST rate, Red Sea port access, 100% foreign ownership, and full profit repatriation — making it one of the most competitive SEZ propositions in the Arab world for logistics and manufacturing.
Official sources
- Jordan Investment Commission (JIC)
- Aqaba Special Economic Zone Authority (ASEZA)
- Companies Control Department (CCD)
- Investment Environment Law No. 30 of 2014
This guide is general information prepared by ARM Management and is current as at July 2026. It is not legal advice; tax rates, sector restrictions and zone regulations change over time. Confirm with the relevant authority or an advisor before incorporating.
Structure your Jordan or Aqaba entity correctly from the outset.
ARM Management advises on Jordanian LLC formation, ASEZA licensing, JIC incentives and regional holding structures for investors entering the Levant and broader Arab market.