Jordan – Self-Employment

How does self-employment work for expats in Jordan?

Expats operating on a self-employed basis in Jordan are bound by the same legislative framework that governs Jordanian nationals. In practical terms, this means that running a business or working independently in Jordan requires meeting the same legal obligations — work authorisation, registration for tax purposes, and where relevant, social security enrolment — that apply to anyone working within the country.

A valid work permit is compulsory for all foreign nationals who wish to be legally active as either employees or self-employed persons in Jordan. In standard employment, the process is driven by the employer, but for those establishing their own venture, the registered legal entity serves as the sponsoring body. In effect, you generally need a registered company in Jordan before you can formally operate as a self-employed individual.

Independent contractors follow a distinct process and are not required to have an external employer act as sponsor. Independent professionals may legally engage with overseas clients without employer sponsorship, provided they comply with Jordan’s local tax registration and reporting obligations. This creates a genuine avenue for freelancers and consultants, though it does not remove the need for formal registration with the relevant tax and commercial authorities.

Certain occupations remain reserved exclusively for Jordanian nationals, restricting foreign participation in particular sectors. Medical and engineering roles, for instance, may be subject to nationality restrictions. Expats considering self-employment should consult the current list of permitted activities maintained by the Jordan Investment Commission (JIC) before taking any steps. Unlike systems in countries such as the UK or Australia, where a simple sole trader registration typically serves as the starting point for self-employment, Jordan places considerably greater weight on the formal business registration route.

Jordan’s Social Security Law No. 1 of 2014 extends coverage to all workers in principle, but self-employed individuals — many of whom are non-nationals — are among the excluded categories. This means self-employed expats may not be automatically enrolled in the national social security system, making it essential to clarify your situation with the Social Security Corporation (SSC) and to explore private insurance options as an alternative.

What are the different self-employment and business structures available in Jordan?

Jordan provides several legal structures for individuals and organisations wishing to conduct trade. The structure you select will determine your personal liability exposure, tax treatment, required capital, and ongoing administrative responsibilities. Among the available options, the Limited Liability Company (LLC) is the most widely favoured by investors and entrepreneurs.

Limited Liability Company (LLC): The LLC is the structure of choice for the majority of foreign investors establishing a presence in Jordan. It can be formed with a single shareholder and carries no citizenship restrictions. Each owner’s liability is confined to the amount they have contributed to the capital. Governance requirements are simpler and less formal compared with shareholding company structures. For non-resident foreign investors specifically, a minimum contribution of JOD 50,000 (approximately USD 70,000) to the authorised capital is required.

Private Shareholding Company (PSC): The private shareholding company is an alternative formation option and is particularly well suited to larger enterprises. A minimum capital investment of JOD 50,000 is required, and the structure offers considerable operational flexibility, making it an attractive vehicle for businesses with a long-term investment horizon.

Public Shareholding Company: A public shareholding company may be registered in Jordan with as few as one shareholder and a minimum capital of USD 100,000, of which 25% must be in circulation on the securities market. Foreign investors may hold up to 50% of the capital, and no resident director is required. This structure is more appropriate for large-scale enterprises than for typical self-employed expats.

General and Limited Partnerships: A general partnership consists of between two and twenty persons, all of whom share joint liability for the business’s debts. A partner’s interest may be transferred with the unanimous consent of all partners, and management may be entrusted to one or more designated managers. A limited partnership includes two categories of partner: general partners, who manage day-to-day operations and carry unlimited liability, and limited partners, whose exposure is restricted to their capital contribution.

Sole Proprietorship: Foreign investors may establish a business in Jordan as a sole proprietor. This is the most straightforward structure — analogous to sole trader registration in other jurisdictions — but it provides no protection from personal liability, meaning that business debts become the owner’s personal responsibility. For this reason, it is less commonly chosen by foreign nationals.

Branch Office: A branch office in Jordan must have a resident director and its head office must be registered and situated outside Jordan. These entities typically operate through contract-based activities within Jordan for a defined period, or conduct temporary operations on the basis of a licence issued by the relevant authorities.

How do you register as self-employed in Jordan?

For the majority of expats, formalising self-employment in Jordan is achieved through the business registration process rather than a standalone freelancer registration. The principal authority overseeing registration is the Companies Control Department (CCD) within the Ministry of Industry, Trade and Supply. The following outlines the typical steps involved:

1. Determine your business structure and sector eligibility. Consider whether an LLC, sole proprietorship, or partnership is the most appropriate structure for your circumstances. Check for sector-specific restrictions with the Jordan Investment Commission, as foreign ownership percentages are capped in certain industries, and sectors such as transportation, trading, and construction may require a Jordanian partner with a minimum 50% shareholding.
2. Reserve a company name. You must complete a name reservation through the Companies Control Department as part of the registration formalities. The proposed name must be unique and conform to the CCD’s naming guidelines.
3. Prepare incorporation documents. Draft the company’s articles of association, which must set out the company’s purpose, capital amount, and management structure, along with a Memorandum of Incorporation detailing governance procedures. Any documents originally prepared in a foreign language must be translated into Arabic and officially certified.
4. Submit documents to the Companies Control Department. The registration process involves CCD filings, capital deposit, GST registration, and enrolment with the Social Security Corporation (SSC). You will need to submit your articles of association, a valid passport as proof of identity, a lease agreement or proof of address, and any sector-specific licence documentation that applies to your activity.
5. Deposit the required capital. From April 2024, 50% of the declared capital must be paid upon incorporation, with the remaining balance due within 60 days. Non-resident foreign investors should note the JOD 50,000 minimum capital requirement outlined above.
6. Register with the Income and Sales Tax Department (ISTD). Following incorporation, you must obtain a tax identification number from the ISTD to trade legally and avoid penalties. The ISTD administers Jordan’s national tax system and can be accessed at istd.gov.jo.
7. Register with the Social Security Corporation (SSC). Business owners and employers must register with both the SSC and the ISTD, and must submit monthly payroll tax returns and social security contribution payments.
8. Obtain sector-specific licences if required. Depending on the nature of your business activity, supplementary licences from professional bodies or regulatory authorities — for example in the medical, engineering, or tourism sectors — may be necessary before operations can commence.

The Companies Control Department manages company registration for both domestic and foreign enterprises, and the full process typically takes around 2 to 3 weeks. The precise timeline will vary according to the chosen business structure, any sector-specific approvals required, and whether registration is completed in person or through online channels. As of 2024, obtaining a registration certificate costs approximately USD 21, with document authentication fees of roughly USD 15–100 per document. Always confirm the current figures directly with the Companies Control Department, as fees may change.

How do you set up a company in Jordan as an expat?

Foreign nationals may establish companies in Jordan, as the country permits 100% foreign ownership provided all applicable legal conditions are satisfied. For most expats, forming a Limited Liability Company (LLC) represents the most practical path. The following outlines the incorporation process step by step:

1. Choose your legal structure. Jordan permits full foreign ownership across the majority of sectors, giving international investors complete control over their businesses. The LLC is the most widely used structure among investors. Evaluate your sector, available capital, and preferred governance arrangement before proceeding.
2. Register with the Jordan Investment Commission (JIC). Foreign investors are required to register their businesses with the Jordan Investment Commission (JIC), which oversees investment regulations and guides investors through the process. Registration typically involves submitting a business plan, shareholder details, and evidence of the required capital. Following registration, the JIC issues the necessary approvals, including any applicable investment incentives.
3. Reserve your company name with the CCD. Submit a name reservation request to the Companies Control Department. The name must be unique, comply with Jordanian naming rules, and carry the appropriate legal designation (e.g. “LLC”).
4. Draft and notarise the Articles of Association. This document defines the company’s business objectives, governance model, and shareholding structure. It must be notarised and submitted as part of the registration application.
5. Secure a registered office address in Jordan. Companies are required to hold a bank account and maintain a registered address within Jordan. As of 2024, virtual business addresses in Amman cost approximately USD 56–167 per month; confirm current pricing with local service providers.
6. Deposit the required share capital. Foreign-owned companies must satisfy specific capital requirements based on their business activity. The minimum capital for foreign investments generally starts at JOD 50,000 for most activities; sectors such as telecommunications, tourism, and finance may require higher amounts.
7. Submit all documents to the CCD and obtain your registration certificate. Once approved, your company is published in the Official Gazette. Upon approval of registration, legal registration procedures are finalised and the company details are published in the Official Gazette following payment of the applicable legal fees.
8. Register for tax and social security. Obtain a Tax Identification Number from the ISTD and register with the Social Security Corporation. Foreign companies are subject to the same tax obligations as domestic businesses, including corporate income tax, GST at 16%, and social security contributions for employees. Annual financial reports must be submitted and bookkeeping must comply with Jordanian accounting standards.
9. Appoint a local legal representative. Every foreign-owned company operating in Jordan is required to have a local legal representative who can assist with regulatory compliance, legal filings, and official correspondence.

As of 2024, annual audit and financial statement preparation typically costs between USD 300 and USD 1,000 or more, depending on company size and complexity. For the most current requirements, consult ccd.gov.jo and the Jordan Investment Commission website.

Can you work as a digital nomad in Jordan?

As of 2025, Jordan has not introduced a dedicated digital nomad visa of the kind offered by Portugal, Greece, or the UAE. That said, Jordan’s entry arrangements are relatively accessible, and location-independent workers frequently make use of them. There are legitimate pathways through which remote workers can operate legally in the country.

Working as a digital nomad in Jordan is possible, but those who wish to do so within the law must obtain a work permit and register their business with the Companies Control Department of the Ministry of Industry and Trade. Simply entering on a tourist visa and working remotely for overseas clients therefore occupies a legal grey area that carries real risks, including potential fines or complications with future visa applications.

Independent professionals in Jordan may legally serve international clients without employer sponsorship, provided they meet local tax registration and reporting obligations. This represents the clearest lawful route for a digital nomad: establish a registered business entity — typically an LLC — obtain the corresponding work permit and residency, and fulfil tax requirements. This approach requires meeting the minimum capital threshold described earlier, which may be out of reach for individuals at an early stage of their freelance career.

Many digital nomads who visit Jordan for shorter periods do so on tourist visas, which generally permit stays of up to one month and may be renewed or extended through local immigration offices. Conducting paid work under this arrangement, however, is not formally authorised under Jordanian labour law, and no exception exists for remote workers whose clients are entirely based abroad. Anyone planning an extended stay as a location-independent professional should seek local legal advice before arrival. For the latest entry and visa information, consult the Jordanian Ministry of Interior or the Public Security Directorate.

Jordan does offer an Investor Card (explored further below) which can provide residency for business founders. For self-employed expats intending to base themselves in Jordan and work with both domestic and international clients, this may prove to be the most sustainable long-term option.

What taxes and social contributions apply to self-employed expats and business owners in Jordan?

Jordan’s tax system is administered by the Income and Sales Tax Department (ISTD), which serves as the official body responsible for overseeing taxation across the country. All self-employed individuals and company owners generating Jordan-sourced income are required to register with the ISTD and file annual returns.

Personal Income Tax (PIT): Tax residents are liable for personal income tax at progressive rates ranging from 5% to 30%, depending on income level (as of 2024). The entry rate of 5% applies to the first JOD 5,000 of taxable income. Any income accrued in or derived from Jordan — regardless of where payment is actually received — is subject to taxation in Jordan. Self-employed expats and company directors receiving Jordan-sourced income fall within this regime.

National Contribution Tax: Where an individual’s annual income exceeds JOD 200,000, a 1% national contribution tax applies (as of 2024).

Corporate Income Tax (CIT): The standard corporate tax rate stands at 20% (as of 2024). Companies active in particular sectors face different rates: telecoms, insurance, mining, electricity, and financial services attract a 24% rate, while banks are taxed at 35%. A National Contribution Tax of between 1% and 7% also applies, depending on profitability and sector (as of 2024).

General Sales Tax (GST/VAT): Jordan levies a general sales tax at a rate of 16% on imported goods and services brought in from outside Jordan or from free zone areas and markets within the country (as of 2024). Businesses that exceed the registration threshold are required to register for GST. Always verify the current registration threshold with the ISTD, as it is subject to revision.

Social Security Contributions: Jordan’s social security contribution rate in 2024 remains at 21.75% in total, split between a 14.25% employer contribution and a 7.5% employee contribution — a structure that has been in place since 2017. Unlike a conventional employment arrangement where an employer automatically deducts and remits contributions, self-employed business owners who also serve as directors of their own company must manage both sides of this obligation themselves, registering and making payments via the Social Security Corporation (SSC).

Tax Filing: Jordan’s tax year follows the calendar year. Tax returns must be submitted by 30 April of the following year. Corporate tax returns must be filed online through the ISTD portal before the end of the fourth month after the close of the relevant tax period.

Tax Treaties: Jordan has concluded double taxation agreements with a number of countries, including the United Kingdom, France, Germany, and several Arab states, and has also ratified the Convention on Mutual Administrative Assistance in Tax Matters. Expats should establish whether a treaty exists between Jordan and their home country to prevent the same income from being taxed in both jurisdictions. Current treaty details are available on the ISTD website.

Withholding Tax: Non-resident legal entities providing services are subject to a 10% withholding tax on imported services. Resident natural persons providing services face a 5% withholding tax (as of 2025). This is particularly relevant for self-employed expats who receive payments from Jordanian businesses.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Jordan?

Jordan maintains a broadly welcoming stance towards foreign entrepreneurs and investors. The government has introduced a range of initiatives and programmes designed to foster entrepreneurship and attract foreign capital.

Free Zones and Development Zones: Investors benefit from a predictable tax environment, a currency pegged to the US dollar, and designated economic zones offering a reduced corporate income tax rate of between 5% and 10%. Businesses operating within Free Zones, Development Zones, or engaged in export-oriented activities may qualify for these tax advantages. These zones are managed by the Jordan Free and Development Zones Group and hold particular appeal for companies in manufacturing, logistics, and export-focused industries. Consult the Jordan Investment Commission for a current list of qualifying zones and eligible activities.

Investor Card: Jordanian legislation provides a range of benefits to non-Jordanian investors operating within the country, including the right to apply for residency and an investor card. To qualify, investors must hold shares representing no less than JOD 50,000 of registered capital and the venture must create at least 10 permanent jobs for Jordanian nationals (as of 2024). The Investor Card grants a residency-linked status that simplifies long-term operations in Jordan and removes the requirement to renew standard visas on a recurring basis.

Jordan Investment Fund (JIF): Launched in 2017, the JIF provides funding and support to startups and small businesses in Jordan. The fund delivers both equity and debt financing alongside technical and managerial guidance to entrepreneurs.

Jordan Enterprise Development Corporation (JEDCO): JEDCO is a government-backed agency that supports small and medium-sized enterprises (SMEs) in Jordan through training, mentoring, and financial assistance. It works with both domestic and foreign-owned businesses and can be a valuable first contact for expat entrepreneurs seeking grants or structured support programmes.

Jordan Investment Commission (JIC): The Jordan Investment Commission works to attract foreign investment by streamlining company establishment procedures and providing investors with guidance on the range of incentives available from the Jordanian state. The JIC functions as a one-stop shop, offering consolidated registration services and advice on qualifying incentives.

Comparable investment promotion frameworks exist in neighbouring countries — the UAE’s various free zone authorities and Saudi Arabia’s Ministry of Investment (MISA) offer similar entry points — but Jordan’s programmes tend to involve lower overhead costs and more flexible ownership arrangements for small and medium-sized foreign businesses.

What are the practical challenges of being self-employed or running a business in Jordan?

Jordan is generally receptive to foreign business owners, but there are several practical difficulties that merit serious consideration before you commit to establishing yourself there.

Language and bureaucracy: Arabic is the official language of government and legal documentation in Jordan. All contracts must be drafted primarily in Arabic, with English translations serving as an optional supplement. Official filings, court documents, tax returns, and company records are all processed in Arabic. Expats without Arabic reading ability will find it extremely difficult to manage registration and compliance procedures independently, and local professional support becomes a practical necessity. Incorporation documents that were originally prepared in a foreign language must also be translated and officially certified.

Local legal and accounting support: Every foreign-owned company in Jordan is legally required to appoint a local legal representative to assist with regulatory compliance, official filings, and administrative paperwork. Beyond this statutory requirement, engaging a licensed Jordanian accountant or law firm from the outset is strongly advisable. The intersection of tax law, company law, and immigration requirements in Jordan means that minor documentation errors can generate significant delays — a situation familiar to foreign business owners operating in other procedurally complex jurisdictions such as Turkey or Egypt, where local advisers are considered indispensable.

Capital requirements: The JOD 50,000 minimum capital requirement for non-resident foreign investors establishing an LLC — equivalent to roughly USD 70,000 as of 2024 — represents a substantial financial hurdle that effectively places this route beyond the reach of early-stage freelancers or sole traders with limited funds. This threshold is notably higher than equivalent requirements in countries such as Estonia, Portugal, or UAE free zones, where limited company formation can be achieved at considerably lower cost.

Work permit and residency linkage: Hiring expatriates in Jordan requires strict adherence to work permit regulations, employer sponsorship requirements, and residency laws. For self-employed expats, residency is typically contingent on business status: if your business becomes inactive or your work permit lapses, your residency situation may be affected. Maintaining both in good standing simultaneously is an ongoing administrative commitment that demands careful attention.

Banking: Opening a business bank account requires foreign investors to submit company registration documents, proof of identity, and other legal paperwork. Some banks may additionally request financial projections and a business plan. Jordan’s banking sector is stable, but account opening for newly arrived foreign business owners can take several weeks and involves Know Your Customer (KYC) documentation requirements broadly comparable to those found across OECD countries. The Jordanian dinar is pegged to the US dollar, which offers a degree of currency stability useful for international transactions.

Sector restrictions and compliance: Businesses must carefully navigate compliance obligations, including foreign ownership restrictions in certain sectors, GST registration thresholds, mandatory social security contributions, and e-invoicing requirements taking effect from 2025. Overlooking any of these can lead to penalties or operational disruption, making it advisable to establish a compliance calendar at an early stage.

Invoicing foreign clients: Self-employed expats who invoice overseas clients should seek professional advice on whether those transactions attract Jordanian GST and how withholding tax provisions might apply. When a company in Jordan pays a non-resident entity for services, it is responsible for calculating, withholding, and remitting the applicable tax to the ISTD. Understanding how these obligations are directed is essential for pricing international contracts accurately.

Frequently asked questions

Can I be both employed and self-employed at the same time in Jordan?

Jordanian law does not expressly prohibit holding concurrent employment and self-employment arrangements, but your employment contract may include exclusivity provisions that bar outside work. Any self-employed activity must also be covered by a separate work permit and business registration. It is advisable to obtain legal advice and ensure your employer is informed before operating in a dual capacity, since failing to disclose this can give rise to contract disputes or permit complications.

Can I invoice foreign clients from my Jordanian business without paying Jordanian VAT on those transactions?

Services exported from Jordan to overseas clients may be treated differently from domestic transactions under Jordanian General Sales Tax rules. Cross-border service exports can in some cases be zero-rated, but this depends on the type of service and the applicable classification. You should confirm the correct treatment with a licensed Jordanian tax adviser or directly with the ISTD, as an incorrect classification can result in an unexpected GST liability.

What happens to my business status if my visa or work permit changes or expires?

Residency in Jordan is ordinarily tied to your work permit, which is itself linked to your registered business. Residency permits must be renewed on an annual basis. Should your work permit lapse or your business registration not be kept current, your residency status may become irregular. It is essential to monitor renewal deadlines for both permits simultaneously and to begin the renewal process well ahead of expiry to avoid any gaps in your legal standing.

Do I need a local Jordanian partner to start a business?

In most sectors, foreign investors are permitted to hold up to 100% of a company’s shares. However, ownership restrictions apply in certain industries, and sectors such as transportation, trading, and construction may require a Jordanian partner holding no less than 50% of the company’s shares. Always verify the rules applicable to your specific sector with the Jordan Investment Commission before deciding on your ownership structure.

Is there a minimum income threshold I need to meet as a self-employed person in Jordan?

Personal income tax begins at 5% on the first JOD 5,000 of taxable income (as of 2024). There is no prescribed minimum level of earnings required in order to register as self-employed, but the capital requirements for company formation — in particular the JOD 50,000 minimum for non-resident foreign investors establishing an LLC — serve as a practical financial barrier to entry. Confirm all current thresholds with the ISTD.

Are self-employed expats covered by Jordan’s social security system?

Jordan’s Social Security Law No. 1 of 2014 extends coverage to all workers in principle, but self-employed individuals are listed among the excluded categories. If you serve as a director of your own company, contributions may be channelled through the company structure, but as a sole trader or freelancer you may not be enrolled automatically. This makes private health insurance and personal retirement planning especially important for self-employed expats in Jordan. Clarify your specific situation with the Social Security Corporation.

How long does it take to register a business in Jordan?

The Companies Control Department oversees company registration in Jordan, and the process can take anywhere from 2 to 23 weeks depending on the complexity of the chosen business structure and the sector-specific approvals involved. For a straightforward LLC with all documentation in order and no sector licences required, most practitioners consider 2 to 3 weeks to be a realistic timeframe.

Do I need to file a tax return in Jordan if I only have foreign-sourced income?

Any income accrued in or derived from Jordan is subject to Jordanian tax regardless of where payment is made. Under the relevant expatriate tax provisions, both residents and non-residents are taxed on their Jordan-sourced income only. If your income originates entirely from clients and activities outside Jordan and you have no permanent establishment in the country, your exposure to Jordanian income tax may be limited. However, since your business registration establishes a presence in Jordan, this is a nuanced question that warrants specialist tax advice tailored to your individual circumstances.