Doing Business with Jordan

A comprehensive guide to doing business, exporting, investing, and manufacturing in Albania.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Jordan Investment Commission

Tel: +962 6 5608400
Email: info@moin.gov.jo
Web: www.invest.jo

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Jordan Customs

Tel: +962 6 4623186
Email: customs@customs.gov.jo
Web: www.customs.gov.jo

National Chamber of Commerce

Amman Chamber of Commerce

Tel: +962 6 5666151/2
Email: info@acc.org.jo
Web: www.ammanchamber.org.jo

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Industry, Trade, and Supply

Tel: +962 6 5629030
Email:
info@mit.gov.jo
Web: www.mit.gov.jo

  • Type of Government: Constitutional Monarchy
  • Population: Approximately 11 million
  • GDP: Around $46 billion USD
  • Corporate Tax Rate: 20-35%, depending on the sector
  • Personal Income Tax Rate: Progressive, up to 30%
  • Major Exports: Phosphates, fertilizers, clothing
  • Major Imports: Machinery, transport equipment, food products

 

Exporting to Jordan involves several steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Jordan’s import regulations and standards for your product.
    • Check for any product-specific certifications needed.
  2. Identify Local Partners

    • Establish relationships with local distributors or agents in Jordan.
  3. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with Jordanian labeling and packaging requirements.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with exports to Jordan.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  5. Customs Declaration

    • Work with a customs broker to facilitate the clearance process.
    • Pay any necessary duties and taxes.
  6. Understand Duties and Taxes

    • Familiarize yourself with Jordan’s import duties and applicable taxes.
  7. Distribution and Sales

    • Establish distribution channels within Jordan.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Jordan involves several steps. Here’s a comprehensive guide:

  1. Register as an Importer

    • Obtain an import license if required for your specific goods.
    • Register with the Jordanian Ministry of Industry, Trade and Supply.
  2. Classify Your Goods

    • Determine the correct Harmonized System (HS) code to identify applicable duties and taxes.
  3. Check Import Regulations

    • Ensure compliance with Jordan’s import regulations and any necessary permits or certifications.
  4. Find a Reliable Supplier

    • Establish a relationship with a trustworthy overseas supplier.
  5. Arrange Shipping and Logistics

    • Choose a reliable freight forwarder.
    • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.
  6. Customs Declaration
    • Submit an import declaration through Jordan Customs.
    • Work with a customs broker if necessary to facilitate the process.
  7. Pay Duties and Taxes

    • Calculate and pay applicable import duties and sales tax.
  8. Receive Your Goods
    • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

Incorporating a company in Jordan involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Type

    • Decide on the type of company (e.g., Limited Liability Company, Private Shareholding Company).
  2. Reserve a Company Name

    • Ensure the name is unique and complies with Jordanian regulations.
  3. Prepare Incorporation Documents

    • Draft the Articles of Association and Memorandum of Association.
    • Include details such as company objectives, directors, and shareholders.
  4. Submit Documents for Approval

    • Submit the incorporation documents to the Companies Control Department (CCD) at the Ministry of Industry, Trade and Supply.
  5. Pay Registration Fees

    • Fees vary depending on the company type and capital. Typically, fees start around JOD 500.
  6. Obtain Necessary Licenses

    • Depending on the business type, additional permits or licenses may be required.
  7. Register for Taxes

    • Register for national taxes with the Income and Sales Tax Department.
  8. Open a Corporate Bank Account

    • Use incorporation documents to open a business account in Jordan.

Costs

  • Registration Fees: Typically start around JOD 500.
  • Additional Costs: May include legal and consulting fees.

Key Contacts

Setting up a manufacturing plant in Jordan involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Analyze demand, competition, and location advantages in Jordan.
  2. Choose a Suitable Location

    • Consider industrial zones for benefits like tax incentives and infrastructure support.
    • Check zoning regulations and obtain necessary permits from local authorities.
  3. Incorporate Your Company

    • Register your business with the Companies Control Department (CCD).
  4. Obtain Necessary Permits and Licenses

    • Apply for construction permits from local municipalities.
    • Secure environmental and safety permits if required.
  5. Secure Financing

    • Explore options through banks, venture capital, or investment partners.
  6. Design and Construct the Facility

    • Hire architects and contractors for design and construction.
    • Ensure compliance with local building codes and safety regulations.
  7. Install Equipment and Machinery

    • Purchase and set up machinery necessary for production.
    • Ensure safety and operational standards are met.
  8. Hire and Train Workforce

    • Recruit skilled labor and provide necessary training.
  9. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.
  10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

Registering a trademark in Jordan involves several steps. Here’s a comprehensive guide:

Step-by-Step Guide

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered. Use the official database from the Ministry of Industry, Trade and Supply.
  2. Prepare Your Application

    • Include details such as the trademark design, classification of goods/services, and applicant information.
  3. Submit the Application

    • File your application with the Industrial Property Protection Directorate (IPPD).
  4. Pay the Application Fee

    • The application fee is approximately JOD 100.
  5. Examination Process

    • IPPD examines the application for compliance and potential conflicts. Respond to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition in the Official Gazette. A period of 90 days is provided for third parties to oppose the registration.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered. Pay the registration fee and receive the Certificate of Registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for 10 years and can be renewed indefinitely. Submit renewal applications to maintain protection.

Costs

  • Application Fee: Approximately JOD 100.
  • Registration Fee: Additional fees apply upon successful registration.

Key Contacts

Resolving commercial disputes in Jordan involves several steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Begin by negotiating directly with the other party to reach an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions. Mediation is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration for a private and binding resolution. The Jordanian Arbitration Law provides a framework for this process.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit in the appropriate Jordanian court. Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Jordan, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

  • Language: Arabic is the primary language. Understanding cultural nuances is crucial for successful business interactions.
  • Business Etiquette: Formality and respect are vital. Building personal relationships is important.

Political Factors

  • Government Structure: Constitutional monarchy with a stable political environment.
  • Regulatory Environment: Clear regulatory framework, though navigating bureaucracy can be complex.

Economic Factors

  • Open Economy: Jordan has a diverse economy with key sectors like mining, manufacturing, and tourism.
  • Corporate Tax Rate: Competitive, ranging from 20-35% depending on the sector.

Foreign Exchange

  • Currency: Jordanian Dinar (JOD).
  • Exchange Rate: Relatively stable, but businesses should monitor for any fluctuations impacting pricing and contracts.

Rule of Law

  • Legal Framework: Strong legal system with protection for property rights and intellectual property.
  • Judiciary: Independent, though legal processes can be lengthy.

Business Environment

  • Infrastructure: Developed infrastructure with reliable transportation networks.
  • Workforce: Educated and skilled, with a growing focus on technology and innovation.

Key Resources

Our Members Include Leading Organizations in Jordan

Ask our Experts on Doing Business in/with Jordan

If you’re looking to do business or invest in Jordan, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.