To start a business in Jordan, businessmen need to be acquainted with the procedure of company filing. This page’s objective is to provide a comprehensive breakdown of all the expenses and charges associated with incorporating a business in Jordan. It is essential for individuals and businesses looking to open a business in the country to understand these costs.
Initial costs
Establishing a firm in Jordan involves important initial costs. These include reserving a unique company name and seeking legal consultation. Understanding these initial costs is crucial for entrepreneurs in Jordan.
Reservation of company name
The first step in getting registered is for the firm to obtain a unique name. An organization name reservation in Jordan typically costs around JOD 20 (Jordanian Dinar). You may be sure that no one else will be able to set up under the name of your choice if you make this arrangement.
Legal consultation and assistance
It is highly recommended that you hire a solicitor or a startup counselor to help you navigate the challenges of the firm incorporation in Jordan. There may be a range of expenses associated with different types of regulatory assistance and inquiry, as well as the degree of services provided.
Capital requirements
Entrepreneurs entering the Jordanian business scene need to adhere to these capital requirements. The costs and responsibilities related to capital requirements are shown below.
Minimum share capital
Corporations must have an initial capital investment, which fluctuates based on the type of enterprise registered, under Jordanian law. A limited liability company (LLC) needs a minimum of JOD 1,000, whereas a public shareholding company (PJSC) typically needs a minimum amount of stock of JOD 500,000. It is crucial to keep in mind that the capital invested must be deposited into an investment account before filing. A crucial first step for launching an enterprise in Jordan is obtaining the required minimum share capital.
Bank account opening
To satisfy the capital prerequisites, firms need to put the required equity into a bank account. The bank may charge a fee for opening an account, and there may be further charges for maintaining an open account or processing operations.
Registration fees
When starting a business in Jordan, it is important to comprehend the registration fees because they cover important components of the procedure and guarantee legal compliance. The costs for registering a company are listed here, which will assist business owners in properly budgeting and planning for a seamless registration process.
Trade name registration
The next step is to register the trade name after the company name has been reserved. In Jordan, the cost to register a trade name is around JOD 310.
Commercial registration
One of the most important steps in the company registration process is commercial registration. Generally expressed as a percentage of the company’s capital, the commercial registration fee is determined by the legal type of the business. For instance, about 0.5% of the share capital is required to register an LLC.
Municipality license
Certain kinds of enterprises must obtain a municipality license. The type of business and the location can affect the cost of a municipal license. It is best to speak with local government representatives or a lawyer to find out the precise costs that apply.
Publication and gazette fees
When forming a company in Jordan, publishing and gazette fees are crucial factors to take into account as they cover the expenses of promoting the firm. Here is a summary of these charges.
Publication in the official gazette
Businesses must list their location in the official gazette, which is the government of Jordan’s official newspaper. Approximately 100 JOD is the fee for publication in the Official Gazette.
Publication in local newspapers
Companies must also issue an announcement of its incorporation in two local newspapers in addition to the Official Gazette. Although the price of publishing in local newspapers can vary, it usually costs between JOD 50 and JOD 100 for every newspaper.
Other expenses
When launching a business in Jordan, entrepreneurs should take into account several additional charges in addition to the initial outlay, capital requirements, and registration fees.
Translation and notarization
Any non-Arabic documents submitted for company formation must be translated into Arabic by a qualified translator. Some documents might also need to be notarized, which comes with extra costs.
Office space and utilities
Leasing or renting office space is frequently necessary to register a business. Several variables, including location, size, and amenities, will affect the cost of utilities and office space.
Employee expenses
If the business decides to hire staff, costs including wages, benefits, and social security contributions must be taken into account.
To sum up
In Jordan, establishing a business entails several charges, such as publication and reservation charges. To guarantee that the registration process goes smoothly, business owners must carefully plan and budget for these costs. Seeking advice from legal experts or business advisors can be very helpful when navigating Jordan’s company registration procedure.
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