Jordan: Operating a Business

Setting Up a Company

A Private shareholding company is a joint-stock company with limited liability.: Number of partners: Two minimum, with no limitation in the number
Capital (max/min): Minimum 50,000 JOD.
Shareholders and liability: Liability is limited to the amount contributed in capital.
A Public shareholding company is the equivalent of the Public Limited Company.: Number of partners: Minimum two. No maximum
Capital (max/min): Minimum 500,000 JOD.
20% must be subscribed at the constitution.
Shareholders and liability: Liability is limited to the amount contributed.
Limited Partnership: Number of partners: Two or more, with no limitation in the number
Capital (max/min): Minimum capital of JOD 100,000.
Shareholders and liability: Liability of general partners is unlimited, that of limited partners is limited to their shares.
General partnership: Number of partners: Minimum two, maximum twenty
Capital (max/min): No minimum capital required.
Shareholders and liability: Partners' liability is several and unlimited for the debts of the company.

The Competent Organisation: 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.

Setting Up a Company	Jordan	Middle East & North Africa
Procedures (number)	7.0	6.3
Time (days)	12.5	19.5

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Jordan.
Jordan Investment Board, Register your company.

	2018	2019	2020
Labour Force	2,585,020	2,649,637	2,595,850

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

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.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: In 2021, the tripartite committee for work affairs increased the monthly minimum wage to JOD 260.
Average Wage: The ILO does not have data on the average wage in Jordan.
According to Jordan's Department of Statistics' latest data available, the average wage was estimated at JOD 524 per month.
Social Contributions: Social Security Contributions Paid By Employers: 14.25% of salary
Social Security Contributions Paid By Employees: 7.5% of the gross wage

Social Dialogue and Involvement of Social Partners: 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.
Labour Unions: Ministry of Labor website, page dedicated to workers' complaints
Unionisation Rate: About 30% of the active population is unionized.
Labour Regulation Bodies: Jordanian Ministry of Labor

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