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flag Jordan Jordan: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

A Private shareholding company is a joint-stock company with limited liability.
Number of partners: One or more, with no limitation in the number
Capital (max/min): Minimum 50 000 JOD.
50% must be subscribed at the constitution and 50% within two years.
Shareholders and liability: Liability is limited to the amount contributed in capital.
A Public shareholding company is the equivalent of the Public Limited Company.
Number of partners: Minimum 3. No maximum
Capital (max/min): Minimum 500 000 JOD.
25% must be subscribed at the constitution and 75% within 4 years.
Shareholders and liability: Liability is limited to the amount contributed.
Limited partnership
Number of partners: One or more, with no limitation in the number
Capital (max/min): Minimum capital of JOD 1,000.
Shareholders and liability: One of the partners must have  liability for the amount he contributed in the capital.
General partnership
Number of partners: One or more, with no limitation in the number
Capital (max/min): Minimum capital of JOD 1,000.
Shareholders and liability: Partners' liability is several and unlimited for the debts of the company.
The Competent Organization
The Department of Trade and Industry, the tax department, the social security office and the Town Council where the company has set up business are the competent organizations for registering a company.
 
Setting Up a Company Jordan Middle East & North Africa
Procedures (number) 7.0 8.0
Time (days) 12.0 23.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Jordan.
Jordan Investment Board, Register your company.

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The Active Population in Figures

201120122013
Labor force 1,771,0001,824,0001,898,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -49.30%41.50%
Men activity rate 73.90%65.40%65.90%
Women activity rate 23.30%15.30%15.60%

Source: UN - United Nations

 

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Working Conditions

Legal Weekly Duration
8 hours a day, 48 hours a week.
Retirement Age
60 for men and 55 for women.
Working Contracts
Jordanian labor law is governed by the law of 1996 and its amendments. The law is completed by application regulations. If a more profitable collective agreement exists, this is the one that will be applied. The work contract must be drawn up in duplicate in Arabic. There are three types of work contract, the open-ended contract, the fixed-term contract, and the apprenticeship contract.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
JOD 150 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: JOD 403 (source: ILO, 2010);
Gross average monthly wage of women: JOD 359 (source: ILO, 2010).
Social contributions
Social Security Contributions Paid By Employers: 10%
Social Security Contributions Paid By Employees: 5%

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Social Partners

Social Dialogue and Involvement of Social Partners
There are 17 unions in Jordan, all affiliated to the General Federation of Jordanian Trade Unions (GFJTU), the only organization recognized and subsidized by the State.
Unions
Ministry of Labor website, page dedicated to workers' complaints
Unionization Rate
About 30% of the active population is unionized.
Labor Regulation Bodies
Jordanian Ministry of Labor

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Last Updates: October 2014