{"id":138134,"date":"2026-04-07T12:07:10","date_gmt":"2026-04-07T12:07:10","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=138134"},"modified":"2026-04-07T12:25:49","modified_gmt":"2026-04-07T12:25:49","slug":"jordan-doing-business-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/jordan-doing-business-in\/","title":{"rendered":"Jordan: Doing Business In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-138134","comparative_guide","type-comparative_guide","status-publish","hentry","guides-doing-business-in","jurisdictions-jordan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Rajai K. W. Dajani &amp; Associates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/12\/Dajani-English-Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Rajai K. W. Dajani &amp; Associates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/12\/Dajani-English-Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Doing Business In laws and regulations applicable in Jordan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the system of law in your jurisdiction based on civil law, common law or something else?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jordan\u2019s legal system is a hybrid of codified civil law, influenced by French and Egyptian models, alongside Islamic (Sharia) law. Civil law regulates contractual, property, and liability relations, while Sharia law governs Muslim personal status matters, including marriage, divorce, and inheritance. The judiciary is structured with civil courts exercising jurisdiction over civil, commercial, and criminal disputes, and Sharia courts maintaining exclusive jurisdiction over personal status cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the different types of vehicle \/ legal forms through which people carry on business in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, businesses can operate under several legal forms defined mainly by the Companies Law No. 22 of 1997, as amended from time to time (the \u201cLaw\u201d), and related regulations. Each structure differs in ownership, liability, capital requirements, and governance. These include:<\/p>\n<p>I. Limited liability company (LLC).<br \/>\nII. Private shareholding company (PSC).<br \/>\nIII. Public shareholding company.<br \/>\nIV. General partnership company (GPC).<br \/>\nV. Limited partnership company (LPC).<br \/>\nVI. Limited partnership in shares (LP-GP structure).<br \/>\nVII. Foreign companies operating in Jordan.<br \/>\nVIII. Non-operating foreign companies in the Hashemite Kingdom of Jordan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can non-domestic entities carry on business directly in your jurisdiction, i.e., without having to incorporate or register an entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Article 240 of the Law, non-domestic entities may not conduct business in Jordan without establishing or registering a legal entity with the Companies Control Department (the \u201cCCD\u201d), as any unregistered activity is unlawful.<\/p>\n<p>It is also worth mentioning that, under the Jordanian Commercial Law, traders must register in the commercial register upon commencing business; failure to do so may result in penalties.<\/p>\n<p>Depending on the activity, additional regulatory approvals, permits, or licences may also be required.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any capital requirements to consider when establishing different entity types?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Capital requirements for establishing a legal entity in Jordan vary by company type:<\/p>\n<ul>\n<li>Limited liability company (LLC): Minimum capital of JOD 1, as specified in the memorandum and articles of association.<\/li>\n<li>Private shareholding company (PSC): Minimum subscribed capital of JOD 50,000.<\/li>\n<li>Public shareholding company: Minimum authorized capital of JOD 500,000; subscribed capital must be at least JOD 100,000 or 20% of the authorized capital, whichever is higher.<\/li>\n<li>General partnership company: No statutory minimum; capital is set out in the constitutional documents.<\/li>\n<li>Limited partnership company: No minimum capital; contributions may be in cash, in kind, or services, as agreed<\/li>\n<li>Limited partnership in shares (LP-GP structure): Capital is divided into units (minimum JOD 1). The limited partner must contribute at least JOD 50,000, and the general partner at least JOD 1,000. Contributions must be in cash, with committed capital payable within three years unless otherwise agreed.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the different types of vehicle established in your jurisdiction? And which is the most common entity \/ branch for investors to utilise?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, the different business vehicles are established through registration procedures governed by the Law and administered mainly by the Companies Control Department (the \u201cCCD\u201d), which operates under the Ministry of Industry, Trade and Supply.<\/p>\n<p>Although the exact process varies by legal form, the general framework is similar:<\/p>\n<p>The set-up of corporate entities in Jordan is primarily conducted via the CCD\u2019s online portal. Incorporation is effected by submitting an application that includes key corporate details such as the company\u2019s name, legal form, business objectives, share capital, directorship, authority matrix, and the names of shareholders and auditors. The application must be accompanied by supporting documentation. Where the shareholders are individuals, copies of their identification documents must be provided. Where a shareholder is a legal entity, the following corporate documents must be submitted:<\/p>\n<p>I. Articles and memorandum of association.<br \/>\nII. A certificate of registration or a power of attorney for authorised signatories.<br \/>\nIII. A document listing the names of the shareholders in the country of origin, as applicable.<br \/>\nIV. Financial statements for the preceding two years (if available).<\/p>\n<p>If such entity is incorporated outside Jordan, all documents must be duly legalised up to the Jordanian Embassy in the country of incorporation, and the Controller may request additional information, as required.<\/p>\n<p>Subject to the approval of the above requirements by the Controller at the CCD, the ultimate beneficial owner (the \u201cUBO\u201d) form must be duly completed and submitted.<\/p>\n<p>Thereafter, the incorporation documents must be executed by the shareholders or their duly authorised representatives, as applicable.<\/p>\n<p>Following incorporation, the company must deposit its share capital within a period of 60 days.<\/p>\n<p>The most commonly used corporate forms in Jordan are LLCs and PSCs. In both structures, shareholders\u2019 liability is limited to their capital contributions. These entities are favoured due to their flexibility, ease of establishment, and clear governance framework.<\/p>\n<p>Foreign companies may also establish a presence in Jordan as either operating or non-operating entities. Operating foreign companies may undertake commercial activities in the Kingdom, often tied to specific projects, subject to registration and regulatory requirements. Non-operating entities (representative or regional offices) are restricted to non-commercial activities and may not generate income in Jordan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the entity operated and managed, i.e., directors, officers or others? And how do they make decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, corporate entities operate under a hierarchical governance model:<\/p>\n<p>Shareholders, Board of Directors, and Officers\/Executives, with decisions made via resolutions, delegated authority, and formal documentation.<\/p>\n<p><strong>a. Shareholders<\/strong><\/p>\n<p>Shareholders are the ultimate owners of the company who exercise key rights (as outlined question 12) Shareholders\u2019 decisions are generally made through the general assembly (ordinary or extraordinary meetings).<\/p>\n<p><strong>b. Board of Directors \/ Directors<\/strong><\/p>\n<p>The directorship of Jordanian companies depends on their legal form, with LLCs and PSCs being the most common.<\/p>\n<p>In LLCs, the company is managed either by a general manager acting alone, a committee of directors (2\u20137 members), or a combination of both, all appointed by the general assembly for a four-year term, unless otherwise specified. The committee of directors appoints a head of the committee and authorised signatories.<\/p>\n<p>In PSCs, and pursuant to the amendments of the Law, management is vested in a board of directors (minimum two members) and a general manager elected by the general assembly for a four-year term, unless otherwise specified. The shareholders, under the articles of association, may agree on the board composition, powers, and decision-making, as well as the appointment and authorities of the general manager, allowing flexibility in appointing members.<\/p>\n<p>In both entities, the directors shall elect a chairman and a vice chairman from amongst its members or others. The chairman shall have a casting vote in the case of a tie in votes, unless the memorandum of association provides otherwise.<\/p>\n<p><strong>c. Day-to-day management<\/strong><\/p>\n<p>Routine operations are handled by executives and officers under the supervision of the directors. Executives implement the company\u2019s policies, strategies, and decisions as approved by the directors, within the authority delegated to them.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there general requirements or restrictions relating to the appointment of (a) authorised representatives \/ directors or (b) shareholders, such as a requirement for a certain number, or local residency or nationality?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Law, both LLCs and PSCs can be established by natural or legal persons.<\/p>\n<ul>\n<li>LLC: Usually requires at least two shareholders, but a single shareholder may be approved by the Minister of Industry, Trade and Supply. LLCs are managed either by a general manager, a committee (2\u20137 members), or a combination of both.<\/li>\n<li>PSC: Requires at least two shareholders and may operate as a single shareholder company with the approval of the Minister of Industry, Trade and Supply. PSCs are managed by a general manager and a board of directors.<\/li>\n<\/ul>\n<p>There are no nationality restrictions on shareholders or management in Jordan. However, foreign ownership in certain sectors may be limited, capped, or restricted to Jordanians under investment regulations. While directors are not required to be Jordanian citizens, at least one director or manager may need to reside in Jordan for practical management purposes, particularly for operational and bank account matters.<\/p>\n<p>Foreign individuals involved in management and residing in Jordan must obtain the necessary work and residency permits.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Apart from the creation of an entity or establishment, what other possibilities are there for expanding business operations in your jurisdiction? Can one work with trade \/commercial agents, resellers and are there any specific rules to be observed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign companies may access the Jordanian market without incorporating a local entity by entering into contractual arrangements with local partners. Common structures include commercial agency agreements governed by the Commercial Agents and Intermediaries Law No. 28 of 2001, as well as distribution, licensing, or franchising arrangements. Such arrangements must comply with applicable commercial, import, and competition laws and should clearly regulate key matters, including scope, exclusivity, termination, and dispute resolution.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance codes or equivalent for privately owned companies or groups of companies? If so, please provide a summary of the main provisions and how they apply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In Jordan, corporate governance is mainly regulated by the Corporate Governance Instructions for Shareholding Companies of 2024. These instructions apply to Public Shareholding Companies and to certain Private Shareholding Companies, particularly those whose capital exceeds JOD 500,000.<\/p>\n<p>The instructions set out key governance principles, including board composition, independent directors, female representation, and the establishment of audit, governance, and risk committees, as well as obligations relating to transparency, disclosure, internal controls, and risk management.<\/p>\n<p>These provisions aim to strengthen corporate oversight, accountability, and the protection of shareholders\u2019 rights, thereby promoting sound governance practices within shareholding companies in Jordan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the options available when looking to provide the entity with working capital? i.e., capital injection, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Further to the Law, working capital may be provided to a company primarily through equity funding or debt financing.<\/p>\n<p>Equity Funding (Capital Increase):<\/p>\n<ul>\n<li>Cash contributions;<\/li>\n<li>In-kind contributions (subject to valuation requirement).<\/li>\n<li>Capitalization of receivables owed to shareholders or third parties.<\/li>\n<li>Advances towards future capital increases.<\/li>\n<li>Capitalization of retained earnings or share premium.<\/li>\n<li>Capitalization of voluntary or special reserves.<\/li>\n<\/ul>\n<p>Debt Financing:<\/p>\n<ul>\n<li>Shareholder loans.<\/li>\n<li>Third-party financing (including bank facilities).<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the processes for returning proceeds from entities? i.e., dividends, returns of capital, loans etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to the Law, proceeds may be returned to shareholders or related parties through several recognized mechanisms:<\/p>\n<ul>\n<li>Dividends: Distribution of realized net profits, subject to financial statements, general assembly approval and statutory reserves, and paid pro rata to shareholding<\/li>\n<li>Capital reduction: Return of capital through a formal reduction process, requiring shareholder approval, registration and creditor protection measures.<\/li>\n<\/ul>\n<p>Loan repayment: Repayment of shareholder or third-party loans in accordance with agreed terms. It is worth mentioning that companies are not allowed to lend its shareholders.<\/p>\n<ul>\n<li>Interest payments: Payments on loans arising from a debtor-creditor relationship, distinct from profit distributions<\/li>\n<li>Liquidation proceeds: Distribution of remaining assets upon dissolution after settlement of liabilities.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are specific voting requirements \/ percentages required for specific decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Specific quorum and voting requirements apply to LLCs and PSCs, depending on the type of resolution.<\/p>\n<p>As a general rule, Ordinary General Assembly meetings require a quorum representing more than 50% of the capital (or voting rights). If the required quorum is not met, a second (adjourned) meeting may be held, which is usually valid regardless of attendance and resolutions are typically adopted by a simple majority of the votes present.<\/p>\n<p>For Extraordinary General Assembly meetings, higher thresholds apply. These generally require a quorum of around 75% of the capital (often reduced to 50% at a second meeting), and resolutions must typically be approved by at least 75% of the votes represented.<\/p>\n<p>Higher thresholds may be set out in the Articles of Association.<\/p>\n<p>It is also important to note that for Extraordinary General Assembly meetings in Public Shareholding Companies, a quorum of more than 50% of the voting shares is required. If this quorum is not met, an adjourned meeting may be held with a quorum of at least 40% of the voting shares. In both the initial and adjourned meetings, resolutions must be approved by at least 75% of the votes represented.<\/p>\n<p>The matters requiring ordinary versus extraordinary resolutions are typically defined by the Law and the company\u2019s constitutional documents, and the exact list varies depending on the type of company. Generally, ordinary resolutions cover routine business matters such as:<\/p>\n<ol>\n<li>Election of the Company\u2019s auditor and determination of its remuneration.<\/li>\n<li>Election of the Company\u2019s General Manager or the Directors as the case may be, in accordance with the provisions of the Law.<\/li>\n<li>Discussion of the report prepared by the General Manager or the Directors on the Company\u2019s operations, activities, financial position during the past fiscal year, and future Company plans.<\/li>\n<li>Discussion and approval of the balance sheet, profit and loss account, and cash flow of the Company after hearing and discussing the report of the auditors.<\/li>\n<\/ol>\n<p>In contrast, extraordinary resolutions are reserved for fundamental decisions, including:<\/p>\n<ol>\n<li>Amending text of the Company\u2019s Memorandum or Articles of Association.<\/li>\n<li>Increase or decrease of the Company\u2019s capital and determination of the stock issuance premium or discount, provided that the provisions pertaining to the decrease of the Company\u2019s capital are observed and the method of increasing the capital is specified by the Law.<\/li>\n<li>Merger of the Company or its incorporation by any of the methods provided for in the Law.<\/li>\n<li>Dissolution and liquidation of the Company.<\/li>\n<li>Discharge of the Company\u2019s General Manager or Director, or any of its members.<\/li>\n<li>Guaranteeing the obligations of third parties, if the Company\u2019s interest so requires.<\/li>\n<li>Sale of the Company or all of its assets, or the acquisition of ownership of another Company, or the purchase of all or part of its assets.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shareholders authorised to issue binding instructions to the management? Are these rules the same for all entities? What are the consequences and limitations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, shareholders are not authorised to issue binding instructions to management in the day-to-day conduct of the Company\u2019s business. Directors are required to exercise independent judgment and act in the best interests of the Company as a whole.<\/p>\n<p>However, shareholders may influence management indirectly through their power to elect directors and through resolutions adopted at General Assembly meetings, particularly in relation to matters reserved to shareholders by the Law or the Company\u2019s constitutional documents.<\/p>\n<p>Management remains subject to fiduciary duties and must not follow shareholder instructions if doing so would breach the Law, the Company\u2019s constitutional documents, or the duty to act in the Company\u2019s best interests.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the core employment law protection rules in your country (e.g., discrimination, minimum wage, dismissal etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The core employment protections in Jordan are primarily governed by the Jordanian Labor Law No. 8 of 1996 and its amendments. Additional employee protections arise under social security legislation, which falls under the authority of the Jordanian Social Security Corporation.<\/p>\n<p>Below is a general overview of the main employment law protections applicable to employees in Jordan:<\/p>\n<p><strong>Anti-discrimination:<\/strong><\/p>\n<p>Employers must ensure equality between male and female employees, including equal pay for work of equal value, and must avoid gender-based discrimination.<\/p>\n<p><strong>Minimum wage:<\/strong><\/p>\n<p>A statutory minimum wage (currently JOD 290 per month) applies, and any agreement for lower pay is invalid.<\/p>\n<p><strong>Working hours and overtime:<\/strong><\/p>\n<p>Working hours are limited to eight hours per day and 48 hours per week. Employees are entitled to a weekly rest day. Overtime must be compensated at no less than 125% of normal wages, and 150% for work on rest days or public holidays.<\/p>\n<p><strong>Leave entitlements:<\/strong><\/p>\n<p>Employees are entitled to annual leave (14 days, increasing to 21 days after five years), sick leave, maternity leave, and public holidays, as well as other statutory leave in specific cases.<\/p>\n<p><strong>Termination protections:<\/strong><\/p>\n<p>Limited term contracts generally end on expiry, while unlimited contracts require at least one month\u2019s prior notice. Early or unlawful termination may trigger compensation, and dismissal without notice is permitted only in specified cases.<\/p>\n<p><strong>End-of-service benefits:<\/strong><\/p>\n<p>Employees not covered by social security are entitled to an end-of-service gratuity of one month\u2019s wage per year of service.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">On what basis can an employee be dismissed in your country, what process must be followed and what are the associated costs? Does this differ for collective dismissals and if so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, employment termination is governed by a structured framework distinguishing between limited and unlimited term contracts, permitting termination for cause or with notice, and providing safeguards against arbitrary dismissal, including entitlement to compensation where applicable.<\/p>\n<p>An employer may dismiss an employee without notice in cases of serious misconduct, including impersonation, submission of forged documents, material breach of contractual obligations, acts causing substantial loss to the employer, repeated violations of internal or safety regulations despite warnings, unjustified absence, disclosure of confidential information, or a final criminal conviction involving moral turpitude, intoxication, workplace misconduct, or assault in connection with employment.<\/p>\n<p>An employee may resign without notice, while retaining full statutory entitlements, upon notifying the Ministry of Labor within two weeks, where the employer commits a material breach, including assignment to substantially different duties, forced relocation, demotion, wage reduction, endangerment to health or safety, assault or harassment, or failure to comply with applicable labor laws despite prior notice.<\/p>\n<p>At the commencement of employment, Jordanian law also regulates termination during a probation period. During the probation period, which may not exceed three months, the employer may terminate the employee without notice and without end-of-service compensation, provided the termination is lawful. The employee is entitled only to wages for the period actually worked up to the date of termination, without additional statutory termination benefits. If employment continues beyond the probation period, it is deemed confirmed, and full legal protections apply. The probation period may not be imposed more than once for the same employee with the same employer.In the case of unlimited term contracts, employment may be terminated without cause upon one month\u2019s prior written notice. The employer may require the employee to work during the notice period or place the employee on garden leave.<\/p>\n<p>Upon termination, the employee is entitled to all accrued rights based on the last wage, including outstanding salary, payment in lieu of notice (if applicable), unused annual leave, overtime, end-of-service gratuity (where not covered by social security), and any contractual or customary benefits.<\/p>\n<p>Where termination is deemed arbitrary, the competent court may, upon a claim filed within 60 days, order reinstatement or award compensation of half a month\u2019s salary per year of service (minimum two months), in addition to notice pay and other statutory entitlements.<\/p>\n<p>A limited-term employment contract expires automatically upon completion of its term, unless renewed or converted into an unlimited term contract. The employer may terminate such contract without notice where lawful grounds for summary dismissal are present as detailed above.<\/p>\n<p>In cases of unlawful early termination of a limited term employment contract, the employee is entitled to compensation equal to the remaining wages for the balance of the term, in addition to accrued entitlements, including unused annual leaves, overtime, and any contractual or customary bonuses, commissions, allowances, or benefits, as well as end-of-service gratuity where not covered by social security.<\/p>\n<p>In cases of collective dismissal based on economic or technical reasons, including restructuring, redundancy, or closure, the employer must obtain prior approval from the Ministry of Labor and substantiate the grounds for termination. Failure to comply may render the dismissal arbitrary, exposing the employer to statutory compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have a system of employee representation \/ participation (e.g., works councils, co-determined supervisory boards, trade unions etc.)? Are there entities which are exempt from the corresponding regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jordan recognizes a system of employee representation primarily through trade unions regulated under the Labor Law. Employees in certain sectors may form and join trade unions, which represent their interests in collective bargaining and labor related matters.<\/p>\n<p>However, Jordan does not have a system of works councils or co-determination, and employees are not legally required to be represented at the board or management level. Employee participation is therefore generally limited to union representation rather than involvement in corporate governance.<\/p>\n<p>There are no specific exemptions as such, although in practice union representation is limited to designated sectors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a system governing anti-bribery or anti-corruption or similar? Does this system extend to nondomestic constellations, i.e., have extraterritorial reach?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, under the Jordanian Penal Code No. 16 of 1960 and the Jordanian Anti-Corruption Commission Law No. 13 of 2016, anti-bribery and anti-corruption provisions can apply to non-domestic situations, but only where a sufficient jurisdictional link exists. This includes cases where the offender is a Jordanian national, a Jordanian public official, or where the conduct affects Jordanian state interests or has a territorial connection (e.g., part of the offence occurs in Jordan). However, the regime does not provide broad extraterritorial reach as it does not generally capture foreign bribery with no link or connection to Jordan. Accordingly, its application to non-domestic constellations is narrow and conditional rather than universal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, are the laws relating to economic crime? If such laws exist, is there an obligation to report economic crimes to the relevant authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jordan has a legislative framework addressing economic crimes primarily under the Jordanian Penal Code No. 16 of 1960 and the Economic Crimes Law No. 11 of 1993. These laws criminalize a range of conduct affecting economic and financial integrity, including fraud, embezzlement, abuse of office, bribery, forgery and offences involving public funds, with the Economic Crimes Law specifically targeting acts that harm public finances and economic security.<\/p>\n<p>As regards reporting obligations, Jordanian law does not impose a general duty on all persons to report economic crimes. However, such obligations may arise in specific circumstances, particularly for public officials or where failure to report is linked to participation in, concealment of, or facilitation of an offence. Accordingly, reporting requirements remain limited and context-dependent, and do not constitute a general reporting duty.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is money laundering and terrorist financing regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Anti-Money Laundering and Counter Terrorist Financing Law No. 20 of 2021, money laundering is criminalized in relation to proceeds derived from any criminal offence and includes the concealment, transfer, conversion or use of such proceeds knowing their illicit origin. Terrorist financing is likewise criminalized and covers the provision or collection of funds, whether from lawful or unlawful sources, with the intention or knowledge that they will be used to support terrorist acts or organizations. The law applies to financial institutions and designated non-financial businesses and professions, including banks, exchange companies, insurance companies, real estate agents, auditors and lawyers when carrying out specified activities. It imposes obligations relating to customer due diligence, including the identification of beneficial ownership, ongoing monitoring, record-keeping and the reporting of suspicious transactions, and adopts a risk-based approach to compliance. The framework also provides for targeted financial sanctions, including asset-freezing measures. Breaches may result in criminal penalties, including imprisonment and fines, as well as administrative sanctions such as license suspension or revocation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there rules regulating compliance in the supply chain (for example comparable to the UK Modern Slavery Act, the Dutch wet kinderarbeid, the French loi de vigilance)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jordan does not currently have a standalone legal framework comparable to the UK Modern Slavery Act, the Dutch child labor due diligence regime or the French duty of vigilance law imposing general supply chain due diligence or reporting obligations.<\/p>\n<p>However, certain aspects of supply chain compliance are addressed under existing legislation, primarily the Labor Law No. 8 of 1996 and the Anti-Human Trafficking Law No. 9 of 2009, which prohibit forced labor, child labor and human trafficking, and regulate working conditions and employee protections.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe the requirements to prepare, audit, approve and disclose annual accounts \/ annual financial statements in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Companies are required to maintain proper accounting records and prepare annual financial statements in accordance with the Law. Financial statements typically include statement of financial position statement of profit or loss, cash flow statement, statement of changes in equity.<\/p>\n<p>Annual financial statements must be audited by an independent licensed auditor appointed by the general assembly of shareholders. The directors are responsible for preparing the financial statements and submitting them, together with the auditor\u2019s report, to the ordinary general assembly for approval within the statutory timeframe. Companies are required to file their annual financial statements with the CCD. Failure to comply with applicable preparation, audit, approval and disclosure requirements may result in administrative sanctions, including fines, suspension of trading, and other regulatory measures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any corporate \/ company secretarial annual compliance requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, companies are subject to ongoing corporate and annual compliance obligations under the Law, administered by the CCD. Key requirements include:<\/p>\n<ul>\n<li>Annual general meeting (AGM): Companies must hold an AGM within the statutory period to approve financial statements, review activities and appoint or reappoint the external auditor<\/li>\n<li>Financial statements: Annual financial statements must be prepared, audited by a licensed auditor and filed with the CCD.<\/li>\n<li>External auditor: An independent auditor must be appointed on an annual basis.<\/li>\n<li>Corporate records: Statutory registers and records (including shareholders, directors and minutes) must be maintained.<\/li>\n<li>Notification of changes: Changes to corporate particulars (e.g. shareholders, management, address, capital or constitutional documents) must be notified to and registered with the CCD.<\/li>\n<li>UBO compliance: Companies must maintain and update the UBO information.<\/li>\n<li>Registrations and licenses: Commercial registration with Chambers of Industry and Commerce, as applicable, and any operational licenses must be renewed as required.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for annual meetings of shareholders, or other stakeholders, to be held? If so, what matters need to be considered and approved at the annual shareholder meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Under the Law, companies are generally required to hold an Annual General Assembly meeting within the first four months of the financial year, upon notice by the General Manager, Chairman or Board of Directors specifying the time, place and agenda.<\/p>\n<p>The ordinary Annual General Assembly meeting typically considers and approves:<\/p>\n<ul>\n<li>The report of the Directors on the company\u2019s activities, financial position and future plans.<\/li>\n<li>The financial statements, including the balance sheet, profit and loss account and cash flows, together with the auditor\u2019s report.<\/li>\n<li>The appointment or election of management or directors, as applicable.<\/li>\n<li>The appointment of the external auditor and determination of their remuneration.<\/li>\n<li>Any other matters properly submitted, provided they do not fall within the competence of an extraordinary meeting.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any reporting \/ notification \/ disclosure requirements on beneficial ownership \/ ultimate beneficial owners (UBO) of entities? If yes, please briefly describe these requirements.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Jordan imposes UBO reporting requirements under the Beneficial Owner Register Regulation No. 62 of 2022 and applicable anti-money laundering frameworks.<\/p>\n<p>Companies must disclose and file UBO information with the CCD and update it on an annual basis or upon any relevant change.<\/p>\n<p>The UBO is the natural person who ultimately owns or exercises effective control over the company, directly or indirectly. Ownership is generally presumed where a person holds 20% or more of the capital or voting rights. Control may also arise through other means, including the ability to influence strategic decisions, appoint or remove management, or exercise control via contractual or financial arrangements. Where no natural person can be identified, senior management is deemed to be the UBO.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What main taxes are businesses subject to in your jurisdiction, and on what are they levied (usually profits), and at what rate?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Businesses in Jordan are primarily subject to corporate income tax on net profits.<\/p>\n<p>The corporate income tax rates in Jordan are applied based on the industry\/business activities from which the taxpayer generates income. According to the new income tax law, the corporate tax rates are as follows, starting from 1 January 2019:<\/p>\n<ul>\n<li>35% for banks<\/li>\n<li>24% for telecommunication, insurance and reinsurance, financial intermediation companies (including exchange and finance leasing companies), companies that generate and distribute electricity, and companies that undertake mining raw material activities<\/li>\n<li>20% for other companies<\/li>\n<\/ul>\n<p>In addition, a national contribution tax is levied on taxable income at rates ranging from 1% to 4% depending on the sector.<\/p>\n<p>Businesses are also subject to general sales tax on goods and services (standard rate 16%), withholding tax on certain payments (commonly around 10%, particularly for non-residents), and social security contributions based on employee wages. Customs duties apply to imports, and certain goods and sectors are subject to additional special taxes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular incentive regimes that make your jurisdiction attractive to businesses from a tax perspective (e.g. tax holidays, incentive regimes, employee schemes, or other?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Jordan offers a range of tax incentive regimes that enhance its attractiveness to investors, primarily under the Investment Environment Law, as well as through development zones and free zones.<\/p>\n<p>Outside free zones and development zones, key incentives include exemptions from customs duties and taxes on fixed assets, production inputs, and spare parts required for business operations, which may be subject to a 0% tax rate pursuant to schedules issued by the Council of Ministers upon recommendation of the Incentives Committee.<\/p>\n<p>In addition, projects that employ more than 250 Jordanian employees or are established in underdeveloped areas may benefit from income tax reductions or exemptions of at least 30% for up to five years from the commencement of operations, irrespective of the Income Tax Law.<\/p>\n<p>Further incentives may be granted by the Council of Ministers, including reductions in land prices, utilities tariffs, infrastructure cost deductions, and additional tax or customs benefits. These are typically awarded based on criteria such as job creation, female workforce participation, strategic importance (including public-private partnerships), technology transfer, local value addition, export orientation, and contribution to regional development.<\/p>\n<p>In development zones, a preferential regime applies. Services consumed within the zone are subject to a reduced 7% sales tax, while goods and services used for business operations are generally subject to 0% sales tax. Registered entities also benefit from broad customs exemptions on imports related to construction, operation, and export activities. However, certain sectors, such as banking, telecommunications, insurance, transportation, and energy, are excluded from some of these preferential income tax treatments.<\/p>\n<p>Free zones offer additional incentives. Registered entities benefit from income tax exemptions on profits derived from export activities, transit trade, and transactions conducted within the free zone, as well as exemptions on non-Jordanian employees\u2019 salaries and allowances. They also enjoy exemptions from customs duties and other taxes on imports into the free zone and exports outside Jordan, as well as 0% sales tax on services consumed within the zone.<\/p>\n<p>Finally, sector-specific incentives (including in the IT sector) and Jordan\u2019s network of double taxation treaties further enhance the overall tax efficiency and attractiveness of the jurisdiction for foreign investors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any impediments \/ tax charges that typically apply to the inflow or outflow of capital to and from your jurisdiction (e.g., withholding taxes, exchange controls, capital controls, etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jordan does not impose exchange or capital controls that would materially impede the repatriation of capital, profits, or dividends by foreign investors, and capital may generally be transferred freely into and out of the country, subject to standard regulatory and anti-money laundering requirements.<\/p>\n<p>Under Article 4\/8 of the Income Tax Law, dividends and profit distributions paid by Jordanian companies are generally exempt from income tax. This applies to limited liability companies, simple limited partnerships, general partnerships, and public and private shareholding companies, except for distributions made by banks, major telecommunications companies, companies engaged in the extraction of basic materials, insurance and reinsurance companies, financial brokerage and finance companies, and entities engaged in financial leasing activities.<\/p>\n<p>Under Article 4\/5 of the Income Tax Law exempts from income tax capital gains realized within the Kingdom, except for gains on assets subject to depreciation under the provisions of Income Tax Law, gains from the sale of shares in limited liability companies, and gains of companies and institutions in the information technology sector after the expiration of the period not exceeding fifteen years from the date of their registration or from the date of entry into force of the provisions of the amended Income Tax Law, whichever is earlier.<\/p>\n<p>Further, certain tax charges may apply. In particular, withholding tax is imposed on specific outbound payments (such as interest, royalties, and certain service fees) made to non-residents, subject to applicable rates and any relief available under double taxation treaties.<\/p>\n<p>There are no specific taxes on the inflow of capital, although transfers should be properly documented for regulatory and tax purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any significant transfer taxes, stamp duties, etc. to be taken into consideration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Certain transfer taxes and stamp duties apply in Jordan and should be taken into consideration.<\/p>\n<p>Under applicable legislation, contracts executed in Jordan are generally subject to a stamp duty of 0.3% of the contract value. This rate increases to 0.6% for contracts entered into with governmental entities and public shareholding companies.<\/p>\n<p>In addition, the transfer of real estate is subject to a transfer tax of approximately 6% of the property value, payable upon registration of the transfer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any public takeover rules?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, a public takeover bid is required when the bidder intends to acquire not less than 40% of the shares of the target public shareholding company. In such cases, the offer must be made to all shareholders on equal terms to ensure fairness and transparency.<\/p>\n<p>The takeover regime in Jordan is mainly governed by the Law, the Securities Law No 18\/2017, and the Instructions for Issuing Companies Disclosure, Accounting and Auditing Standards for the Year 2017. Furthermore, the responsible authorities overseeing this area of law are the Jordan Securities Commission (JSC) and the Ministry of Industry, Trade and Supply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a merger control regime and is it mandatory \/ how does it broadly work?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition matters in Jordan are governed by Competition Law No. 33 of 2004, which applies to economic activities within the Kingdom and conduct outside Jordan that affects local competition.<\/p>\n<p>The Competition Law regulates \u201ceconomic concentrations\u201d, including mergers, acquisitions of control, and joint ventures. Transactions that create or strengthen a dominant position or significantly restrict competition are subject to prior approval by the Competition Directorate.<\/p>\n<p>There are no fixed financial thresholds the assessment is effects based. In practice, a market share of around 40% may indicate dominance and trigger review.<\/p>\n<p>The regime applies broadly to transactions that have a connection to Jordan, subject to limited exemptions, including certain cases deemed to be in the public interest.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation to negotiate in good faith?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordanian legislation, there is no explicit provision that imposes an obligation to negotiate in good faith during the pre-contractual stage. The Jordanian laws do not expressly regulate the conduct of parties during negotiations or before the conclusion of a contract. Instead, the Jordanian Civil Code only requires that contracts be performed in accordance with the principle of good faith, meaning that this obligation applies at the stage of contract execution rather than during negotiations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What protections do employees benefit from when their employer is being acquired, for example, are there employee and \/ or employee representatives\u2019 information and consultation or co-determination obligations, and what process must be followed? Do these obligations differ depending on whether an asset or share deal is undertaken?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Jordanian Labor Law, employee protections in the context of an acquisition depend primarily on whether the transaction is structured as a share deal or an asset deal, as well as on the treatment of employees within the transaction.<\/p>\n<p>The position differs between share deals and asset deals. In a share deal, the employing entity remains unchanged and employment relationships continue uninterrupted on their existing terms and conditions. Any subsequent changes to employment terms must comply with general Labor Law principles and cannot be imposed unilaterally without lawful basis.<\/p>\n<p>In contrast, in an asset acquisition, the employing entity may change, and Jordanian law does not provide for the automatic transfer of employees to the buyer. Employees remain employed by the seller unless there is an agreement to transfer them and their consent is obtained. Where employees are transferred, this is typically implemented through new or mirrored employment contracts, and the extent to which existing rights and continuity of service are preserved depends on the contractual arrangements between the parties.<\/p>\n<p>If employees are not transferred as part of the asset deal, they remain with the seller. In such circumstances, if the seller no longer requires their services following the transaction, it may seek to terminate their employment for economic or technical reasons. However, under Article 31 of the Labor law, the employer must first submit an application to the Ministry of Labor and obtain approval before proceeding with such dismissals. The Ministry of Labor has discretion to accept, reject, or modify the employer\u2019s request, and may propose alternatives to termination.<\/p>\n<p>As for information and consultation obligations, Jordanian laws do not establish a formal regime requiring employers to consult with employees or employee representatives in acquisition scenarios, nor does it provide for co-determination rights. Therefore, such obligations do not materially differ between share and asset deals from a statutory perspective.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please detail any foreign direct investment restrictions, controls or requirements? For example, please detail any limitations, notifications and \/ or approvals required for corporate acquisitions.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign direct investment in Jordan is governed by the Investment Environment Law No. 21 of 2022 and related regulations, which provide a generally open regime subject to sector-specific restrictions.<\/p>\n<p>Foreign ownership may be capped (typically below 50%) in certain sectors, including retail and wholesale trade, construction, brokerage, commercial agency and transport services, while full foreign ownership is prohibited in limited sectors such as quarrying, security services and certain regulated activities.<\/p>\n<p>Investments in restricted sectors require prior approval from the Minister of Investment and, where applicable, other regulatory authorities. Foreign acquisitions are permitted, subject to compliance with ownership limits and regulatory approvals.<\/p>\n<p>Foreign investors must comply with applicable registration and licensing requirements. Eligible investments may benefit from customs exemptions and tax incentives, subject to approval.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any exchange control requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the laws of Jordan and directives of the Central Bank of Jordan currently in effect, (i) there are no exchange control restrictions in Jordan relating to the payment of foreign currency obligations except that the Central Bank of Jordan controls the exchange rates of the Jordanian Dinar against foreign currencies, and (ii) no currency exchange approvals are required for the companies to meet any payment obligations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the most common ways to wind up \/ liquidate \/ dissolve an entity in your jurisdiction? Please provide a brief explanation of the process.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Jordan, companies may be dissolved and liquidated either voluntarily or compulsorily in accordance with the provisions of the Law. Voluntary liquidation is the most common method and occurs upon an extraordinary resolution of the General Assembly.<\/p>\n<p>The Extraordinary General Assembly of the Company shall explore the possibility of voluntary liquidating the Company in the following events:<\/p>\n<ol>\n<li>If the losses exceed half of the registered capital, unless they the Extraordinary General Assembly decides to continue with the operations of the Company after rectifying its status.<\/li>\n<li>The expiration of the term of the company.<\/li>\n<li>The fulfillment of the company\u2019s objectives.<\/li>\n<li>Any other reason provided for in its Articles and Memorandum of Association.<\/li>\n<\/ol>\n<p>Following such resolution, the Company enters into liquidation and a liquidator is appointed to settle its affairs, including collecting assets, settling liabilities, disposing of assets and distributing any remaining proceeds to shareholders. The liquidation must be registered with the CCD and the Company continues to exist solely for liquidation purposes until it is struck off the register.<\/p>\n<p>Compulsory liquidation occurs by court order, typically in any of the following cases with the process conducted under judicial supervision. A Company may also be involuntarily dissolved for the following reasons:<\/p>\n<ol>\n<li>If the Company commits serious violations of the Law or its articles of association.<\/li>\n<li>If the Company fails to fulfill its commitments.<\/li>\n<li>If the Company suspends its operations for one year without a legitimate or justified cause.<\/li>\n<li>If the Company suffers losses exceeding 75% of their registered capital share and fail to rectify the situation.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6968<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/138134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=138134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}