Operating a Business

flag Jordan Jordan: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

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.

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The Active Population in Figures

201820192020
Labour Force 2,585,0202,649,6372,595,850

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 41.70%41.75%41.78%
Men activity rate 67.42%67.36%67.26%
Women activity rate 15.21%15.38%15.56%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

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.

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Cost of Labour

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

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Social Partners

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.
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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Latest Update: November 2022