Economic & Business Laws — Jordan

Economic and Business Laws for Immigrants in Jordan

*Note: Jordanian regulations change periodically through Cabinet decisions and ministerial instructions. Verify current details with the Jordan Investment Commission (JIC), Ministry of Labour, Ministry of Interior, and a licensed local lawyer before making decisions.*

Right to Work by Visa/Residency Type

Tourist Visas

• Do not permit any form of employment, paid or unpaid
• Single-entry visas typically valid for 1 month (extendable); working while on this status is grounds for deportation and employer fines

Work Visas/Permits

• Employment is tied to a specific employer and specific job classification
• Employer must obtain a work permit from the Ministry of Labour before the employee begins work
• Work permits are generally issued for one year, renewable
• Changing employers typically requires a new work permit application, not a simple transfer
• Certain professions are closed to foreigigners (see Restricted Sectors below) via periodic Ministry of Labour decisions covering occupations reserved for Jordanians (e.g., many clerical, sales, secretarial, and some skilled trades roles)

Investor Residency

• Foreigners who invest above certain thresholds (historically JD 50,000+ in a registered company, though thresholds change) may qualify for residency permits tied to their investment
• This residency generally allows the investor to manage their own business but does not automatically confer a general right to work for other employers

Family/Dependent Residency

• Spouses and dependents of workers/investors usually do not automatically receive work rights
• Dependents typically need their own separate work permit sponsored by an employer to work legally

Refugee Status (UNHCR-registered, notably Syrians)

• Since 2016 (Jordan Compact), Syrian refugees can obtain work permits in specific sectors (agriculture, construction, manufacturing) often with reduced fees or fee waivers
• Permits are sector-restricted and require registration with the Ministry of Labour
• Non-Syrian refugees/asylum seekers generally face more restrictions and should check current UNHCR/Ministry of Labour guidance

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Starting a Business as a Foreigner

Structuring Options

• Limited Liability Company (LLC): Most common vehicle; requires minimum 2 shareholders
• Foreign-owned companies: Jordan generally permits 100% foreign ownership in most sectors, but some sectors require Jordanian partners or have capped foreign ownership percentages (see restrictions below)

Minimum Capital Requirements

• Non-Jordanian-owned companies (or those with foreign shareholders) often face higher minimum capital requirements than Jordanian-only companies
• Historically, minimum capital for a company with foreign ownership has been around JD 50,000, though this varies by sector and has changed over time — confirm current figures with the Companies Control Department

Registration Process

• Reserve a trade name with the Companies Control Department (Ministry of Industry, Trade and Supply)
• Draft and notarize Articles of Association
• Deposit required capital in a Jordanian bank
• Register with the Companies Control Department
• Obtain a Chamber of Commerce/Industry registration
• Register for tax purposes with the Income and Sales Tax Department
• Register with Social Security Corporation (SSC) if hiring employees
• Obtain sector-specific licenses (municipality license, health/safety approvals, etc.)

Investor Incentives via JIC

• The Jordan Investment Commission offers a "one-stop shop" for larger investments, with potential tax holidays, customs exemptions, and reduced income tax in designated Development Zones (e.g., Aqaba Special Economic Zone) and Free Zones
• Aqaba Special Economic Zone Authority (ASEZA) has distinct, often more favorable, rules for foreign investors, including reduced corporate tax rates (historically around 5%) and duty exemptions

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Foreign Investment Restrictions

Sectors Closed or Restricted to Foreign Ownership

Jordan maintains a Negative List (updated periodically by Cabinet decision under the Investment Law) restricting or capping foreign ownership in certain activities, historically including:

• Retail/wholesale trade below certain investment thresholds (often reserved for Jordanians or requiring minimum capital to qualify for foreign ownership)
• Certain transportation services
• Some construction contracting categories
• Certain professional services (law, some engineering/architecture licensing tied to Jordanian professional bodies)
• Security services
• Some mining and quarrying activities

Ownership Caps

• Some sectors allow foreign ownership only up to a specified percentage (e.g., historically certain trade activities allowed only up to 50% foreign ownership, or required minimum capital thresholds of JD 50,000–100,000+ to permit 100% foreign ownership)
• These thresholds and lists are revised regularly — always check the current Negative List from JIC

Reciprocity Principle

• Some restrictions apply reciprocity: nationals of countries that restrict Jordanian investment may face parallel restrictions in Jordan

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Property Ownership Rights for Non-Citizens

General Rule

• Foreigners can own real estate in Jordan, but with significant restrictions compared to Jordanian citizens

Key Restrictions

• Foreign ownership requires Cabinet/Ministry of Finance approval in many cases, particularly outside designated investment zones
• Ownership is often capped at a maximum area (historically around 3 dunums, roughly 3,000 sq meters, per family for residential property in most areas), though this varies by governorate and property type
• Some border/security-sensitive areas are entirely off-limits to foreign ownership
• Reciprocity requirement: Nationals of countries that do not allow Jordanians to own property in their country may be barred from owning property in Jordan (case-by-case)
• Agricultural land ownership by foreigners is heavily restricted or prohibited in most cases

Special Economic Zones

• Foreign ownership rules are often more liberal in Aqaba Special Economic Zone, where foreigners can own property with fewer restrictions, sometimes without the standard approval process

Permanent Residents

• Jordan does not have a broad "permanent residency" category comparable to Western countries; long-term residency is typically tied to ongoing investment, employment, or specific programs (e.g., real estate investment residency programs requiring minimum property purchase, historically around JD 200,000+ in some scheme iterations)
• These investment-linked residency programs may offer improved property rights, but confirm current thresholds — figures change frequently

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Banking Access for New Immigrants

Opening a Bank Account

• Foreigners can open accounts at Jordanian banks with:
• Valid passport
• Residency permit or work permit (some banks accept valid visa + proof of address for basic accounts)
• Proof of address (rental contract, utility bill)
• Reference or introduction letter sometimes requested, especially for larger banks

Practical Considerations

• Requirements vary significantly by bank; some are more accommodating to foreigners than others (Arab Bank, Cairo Amman Bank, and others have foreigner-friendly processes; verify current policy)
• Anti-money laundering (AML) compliance means banks conduct enhanced due diligence for foreign nationals, sometimes requiring source-of-funds documentation
• Non-residents (tourist visa holders without residency) may face more limited account options or be restricted to certain account types
• Transferring large sums internationally may trigger additional documentation requirements under Central Bank of Jordan AML/CFT regulations

Currency Controls

• The Jordanian Dinar (JD) is pegged to the US Dollar; while Jordan has relatively liberal currency exchange rules compared to some neighbors, large currency transfers/exchanges should be documented to avoid AML flags

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Labor Law Protections for Immigrant Workers

Coverage Under Jordanian Labor Law

• Jordan's Labour Law No. 8 of 1996 (as amended) generally covers foreign workers with legal work permits, granting rights similar to those of Jordanian workers, including:
• Minimum wage (historically around JD 260/month for most sectors, though a lower rate has sometimes applied to garment sector migrant workers — verify current rate)
• Maximum working hours (typically 48 hours/week, with overtime provisions)
• Annual leave (minimum 14 days/year, increasing with tenure)
• Sick leave entitlements
• End-of-service benefits in specified circumstances

Employer Obligations

• Employers must cover work permit fees, which vary by sector and nationality (historically ranging from a few hundred to over JD 1,000/year per worker, with reduced/waived fees for Syrian refugees in specific sectors under the Jordan Compact)
• Employers are generally required to provide health insurance or ensure access to healthcare for migrant workers, particularly in sectors like domestic work and garments
• Employers must register foreign employees with the Social Security Corporation (SSC) — foreign workers contribute to and may be entitled to certain SSC benefits, though rules on repatriating contributions upon leaving Jordan should be checked

Vulnerable Sector Protections

• Domestic workers are covered under a specific bylaw (Regulation for Domestic Workers, Cooks, Gardeners) with distinct protections and complaint mechanisms, but historically weaker enforcement and higher vulnerability to exploitation (passport confiscation, restricted movement) — this remains an area of ongoing reform and NGO advocacy
• Garment sector migrant workers (many from South/Southeast Asia) are subject to specific monitoring programs (e.g., Better Work Jordan) due to past labor rights concerns

Recourse Mechanisms

• Foreign workers can file complaints with the Ministry of Labour's dedicated units, including a complaints hotline
• Legal aid organizations and ILO-Jordan programs provide some support for migrant worker grievances
• Contract substitution (being given different terms than initially agreed) and passport confiscation are illegal but remain enforcement challenges — workers should keep copies of contracts and know their rights before arrival

Termination and Deportation Risk

• Losing a job typically means losing legal work status; workers usually have a limited grace period to find new employment/sponsorship or must depart, creating leverage imbalances that increase vulnerability to exploitative conditions

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Key Recommendations

• Consult the Jordan Investment Commission (JIC) website for the current Negative List and investment incentives before establishing a business
• Verify current minimum capital and property ownership thresholds with a local lawyer, as these are adjusted periodically by Cabinet decision
• Confirm work permit category and sector restrictions with the Ministry of Labour before accepting employment
• Engage a Jordanian lawyer for property purchases, given reciprocity rules and approval requirements
• Check Jordan Compact provisions if you are a Syrian refugee seeking work authorization, as these have specific application processes and sector limitations
• Monitor Central Bank of Jordan circulars for evolving banking/AML requirements affecting foreign account holders

More about immigrating to Jordan