Jordan is a country located in the Middle East and is home to a diverse and growing economy. The country is known for its political stability, educated workforce, and strategic location. As such, it is becoming increasingly attractive for expats who are interested in starting a business or becoming self-employed in the country. In this article, we will explore the process of self-employment and business start-ups in Jordan for expats.
How self-employment works for expats in Jordan
Expats who wish to become self-employed in Jordan must follow a specific process. First, they must obtain a work permit, which is issued by the Ministry of Labor. Once they have obtained this permit, they can register their business with the Companies Control Department of the Ministry of Industry and Trade.
Expats who are self-employed in Jordan are subject to the same laws and regulations as Jordanian nationals. This means that they are required to pay social security contributions, income tax, and any other applicable taxes.
Registering as Self-Employed in Jordan
- Obtain a work permit from the Ministry of Labor. This can be done by submitting an application, along with all required documents, to the Ministry.
- Once the work permit has been obtained, the expat can proceed with registering their business with the Companies Control Department of the Ministry of Industry and Trade. This can be done online through the Ministry’s website or in person at the department’s offices.
- The expat will need to provide all required documents, including a business plan, proof of residence, and proof of capital.
- Once the registration process is complete, the expat will receive a business license, which allows them to operate their business legally in Jordan.
Can you work as a digital nomad in Jordan?
Yes, it is possible to work as a digital nomad in Jordan. However, digital nomads who wish to work legally in the country must obtain a work permit and register their business with the Companies Control Department of the Ministry of Industry and Trade.
How an expat can start a company in Jordan
Expats who wish to start a company in Jordan can do so by registering their business with the Companies Control Department of the Ministry of Industry and Trade. There are several types of companies that can be registered in Jordan, including:
- Limited Liability Company (LLC)
- Public Shareholding Company (PSC)
- General Partnership Company (GPC)
- Limited Partnership Company (LPC)
- Foreign Branch Office
The type of company that is best for an expat will depend on several factors, including the nature of the business and the amount of capital that is available.
Step-by-step guide on how an expat can set up a company in Jordan
- Choose the type of company that is best for the business.
- Register the company name with the Companies Control Department of the Ministry of Industry and Trade.
- Prepare the company’s articles of association, which must include information such as the purpose of the company, the amount of capital, and the management structure.
- Obtain a work permit from the Ministry of Labor.
- Register the company with the Companies Control Department of the Ministry of Industry and Trade.
- Obtain a tax identification number from the Ministry of Finance.
- Open a bank account for the company.
- Obtain any necessary licenses and permits from the relevant government authorities.
Incentives or Programs for Expats in Jordan
The Jordanian government has introduced several initiatives and programs to encourage foreign investors and entrepreneurs to set up businesses in Jordan. These include:
Jordan Investment Fund (JIF): The JIF was launched in 2017 to provide funding and support for startups and small businesses in Jordan. The fund provides equity and debt financing, as well as technical and managerial support to entrepreneurs.
Jordan Enterprise Development Corporation (JEDCO): JEDCO is a government agency that provides support and assistance to small and medium-sized enterprises (SMEs) in Jordan. It offers training, mentoring, and financial support to SMEs.
Jordan Economic Growth Plan (2018-2022): The Jordanian government has launched an economic growth plan aimed at attracting foreign investment and promoting entrepreneurship in the country. The plan includes measures such as simplifying the process of setting up a business, reducing taxes, and increasing access to financing.
Free zones: Jordan has several free zones that offer tax incentives and other benefits to foreign investors. These include the Aqaba Special Economic Zone, the Amman Development Zone, and the Zarqa Development Zone.
Ease of doing business: Jordan has made significant improvements in its ease of doing business ranking in recent years. The country ranked 75th out of 190 countries in the World Bank’s 2020 Doing Business report, up from 104th in 2018.
Overall, Jordan offers a relatively friendly environment for foreign entrepreneurs and investors looking to start businesses. The government has introduced several initiatives and programs to encourage entrepreneurship and foreign investment in the country.