Jordan’s Business Law Shake-Up 2025: What Every Investor Must Know Now

Table of Contents

• Executive Summary: The State of Business Law in Jordan (2025)
• Recent Legislative Changes: Key 2024–2025 Updates
• Company Formation & Corporate Structures: Legal Requirements
• Taxation, Duties, and Financial Regulations: Compliance Essentials
• Foreign Investment Rules: Opportunities and Restrictions
• Labor Laws and Workforce Compliance for Businesses
• Intellectual Property Rights: Protection and Enforcement
• Dispute Resolution and Judicial Processes
• Key Statistics: Business Law in Numbers (Sources: legalaffairs.gov.jo, mof.gov.jo, jipa.jo)
• Future Outlook: Predicted Reforms and Strategic Considerations (2025–2030)
• Sources & References

Executive Summary: The State of Business Law in Jordan (2025)

Business law in Jordan is undergoing significant transformation in 2025, reflecting both domestic reform initiatives and regional economic integration ambitions. The legal environment continues to be shaped by amendments to core statutes such as the Companies Law, investment incentives, and commercial regulations, all under the oversight of the Ministry of Finance, Ministry of Industry, Trade and Supply, and the Jordan Investment Fund. Recent years have witnessed targeted efforts to streamline business registration, enhance investor protections, and align with international anti-money laundering and compliance standards.

In 2024 and continuing into 2025, Jordan implemented amendments to the Companies Law No. 22 of 1997, focusing on digital registration, shareholder rights, and corporate governance. The Ministry of Industry, Trade and Supply reported a rise in new company registrations by 8% during 2024, reflecting increased confidence in the legal infrastructure for business establishment. Additionally, the Jordan Securities Commission introduced new disclosure requirements for publicly listed companies to boost transparency and investor trust.

On compliance, Jordan has reinforced its anti-corruption and anti-money laundering frameworks. In response to evaluation by the Central Bank of Jordan, banks and companies are now mandated to implement stricter Know Your Customer (KYC) protocols and report suspicious transactions under the Anti-Money Laundering and Counter Terrorism Financing Law. The Jordan Securities Commission continues to monitor capital markets for compliance, while the Amman Chamber of Industry assists businesses in understanding new obligations.

According to the Jordan Investment Commission, foreign direct investment inflows increased by 12% in 2024, a positive signal attributed to regulatory reforms and greater legal certainty for investors. The government’s commitment to digitization, including the online company registration portal and e-government services, is expected to further reduce administrative burdens and processing times in 2025.

Looking forward, Jordan’s business law regime is expected to focus on enhancing digitalization, fostering public-private partnerships, and further aligning with international trade and compliance standards. The ongoing development of the new Investment Law and anticipated reforms in bankruptcy and insolvency frameworks will be key areas to monitor, as they are likely to impact both domestic entrepreneurs and foreign investors over the coming years.

Recent Legislative Changes: Key 2024–2025 Updates

Jordan’s business law landscape has experienced significant reforms in 2024 and early 2025, aimed at enhancing investment appeal, transparency, and regulatory compliance. Several legal amendments and new regulations have been enacted, impacting company formation, foreign investment, insolvency, and digital commerce.

• Companies Law Amendments: In 2024, amendments to the Companies Law (No. 22 of 1997) streamlined company registration and reporting processes, especially for Limited Liability Companies (LLCs) and Public Shareholding Companies. The Ministry of Industry, Trade, and Supply introduced an online company registration portal, reducing processing times to as little as two working days, facilitating business entry and formalization (Ministry of Industry, Trade and Supply).
• Foreign Investment Law (2024 Revision): The updated Investment Environment Law (No. 21 of 2022) underwent further refinements in 2024, clarifying sectors open to full foreign ownership and streamlining licensing. The Jordan Investment Fund Law also saw increased incentives for strategic sectors, such as ICT, renewable energy, and logistics (Jordan Investment Commission).
• Insolvency & Bankruptcy Reform: Building on the 2018 Insolvency Law, 2024 amendments provided clearer procedures for debt restructuring and out-of-court settlements, strengthening creditor protection and business continuity during financial distress (Ministry of Justice).
• Data Privacy and E-Commerce: The new Electronic Transactions Law (effective 2025) introduced robust data privacy standards, digital signatures, and consumer protection mechanisms for online commerce. Businesses are now required to comply with stricter data handling and notification obligations, aligning Jordan with international best practices (Ministry of Industry, Trade and Supply).
• Anti-Money Laundering (AML) Compliance: Following recommendations by the Financial Action Task Force (FATF), the Central Bank of Jordan and Anti-Money Laundering and Counter Terrorist Financing Unit (AMLU) updated guidelines in 2024. These mandate enhanced due diligence, beneficial ownership disclosures, and stricter reporting for financial institutions and designated non-financial businesses (Central Bank of Jordan).

Looking ahead to 2025 and beyond, Jordan’s regulatory environment is expected to further mature. The focus will be on digital transformation, cross-border trade facilitation, green investment incentives, and continued alignment with global compliance standards. These legislative changes position Jordan as a competitive, transparent, and investor-friendly market in the region.

Company Formation & Corporate Structures: Legal Requirements

Company formation in Jordan is governed by the Companies Law No. 22 of 1997 and its amendments, overseen by the Companies Control Department (CCD) of the Ministry of Industry, Trade and Supply. As of 2025, Jordan offers several corporate structures, including Limited Liability Companies (LLCs), Public Shareholding Companies (PSCs), Private Shareholding Companies, and foreign branch offices. Each structure comes with distinct capital requirements, governance obligations, and reporting standards.

• LLCs: The most common vehicle for small and medium businesses, LLCs require a minimum capital of JOD 1 and at least two shareholders. The establishment process includes reserving a company name, submitting incorporation documents, and registration with the CCD. LLCs must also register with tax authorities and social security. Updates to the Companies Law have streamlined the process, enabling digital registration and reducing paperwork in recent years (Companies Control Department).
• PSCs: These entities are suitable for larger investments and may be listed on the Amman Stock Exchange. The minimum share capital is JOD 500,000. PSCs are subject to more rigorous disclosure, auditing, and corporate governance regulations, including annual shareholder meetings and detailed financial reporting (Amman Stock Exchange).
• Foreign Companies: Foreign investors can register representative or operating branches in Jordan, but must comply with local licensing and have a Jordanian auditor. The Ministry of Industry, Trade and Supply provides detailed guidance on these requirements.

Compliance with anti-money laundering and beneficial ownership disclosure is increasingly enforced, following recent amendments harmonizing local rules with international standards (Jordan Securities Commission). As of 2025, Jordan is also focusing on digitalization of corporate services, with the CCD expanding online registration and compliance platforms to improve efficiency and transparency.

Official statistics indicate that over 6,500 new companies were registered in Jordan in 2023, with continued growth projected for 2025 as reforms take effect (Companies Control Department). Looking ahead, further streamlining of procedures and digital transformation are expected, positioning Jordan as a regional hub for investment and entrepreneurship within the next few years.

Taxation, Duties, and Financial Regulations: Compliance Essentials

Jordan’s business law framework for taxation, duties, and financial regulation is undergoing significant modernization to align with international standards and enhance economic competitiveness. In 2025, compliance with tax and regulatory obligations remains a cornerstone for both domestic and foreign businesses operating in the Kingdom.

The principal tax legislation is the Income Tax Law No. 34 of 2014 and its subsequent amendments, which establish a progressive corporate tax regime. Tax rates vary by sector, with financial institutions subject to a 35% rate and other sectors generally taxed between 14% and 24%. The General Sales Tax Law imposes a standard VAT rate of 16%, with certain goods and services subject to reduced or zero rates. Customs duties are governed by the Customs Law No. 20 of 1998, with ongoing tariff rationalization to support trade facilitation. In recent years, Jordan has implemented electronic tax filing and payment systems, streamlining compliance and reducing administrative burdens for businesses Income and Sales Tax Department.

Jordan’s financial sector is regulated by the Central Bank of Jordan, which issues directives on anti-money laundering (AML), capital adequacy, and financial reporting standards in line with Basel III and FATF recommendations. Non-bank financial institutions and securities markets fall under the purview of the Jordan Securities Commission. The Companies Law No. 22 of 1997 and its amendments impose statutory requirements for financial disclosure, annual audits, and director responsibilities, reinforcing transparency and investor protection.

To foster international cooperation and meet OECD standards, Jordan has joined the Inclusive Framework on BEPS and committed to implementing measures against tax avoidance and profit shifting. The Ministry of Finance reports that tax revenue represented approximately 14.6% of GDP in 2023, with continued efforts to broaden the tax base and improve voluntary compliance. Recent initiatives include enhanced taxpayer education, digitalization of customs clearance, and risk-based audit selection.

Looking ahead, businesses in Jordan should expect further digitization of tax administration, stricter enforcement of AML/CFT regulations, and the possible adoption of new transfer pricing rules. Regular updates to financial reporting and compliance requirements are anticipated, reflecting Jordan’s commitments under regional and international agreements. For companies, diligent adherence to evolving tax, duty, and financial regulations will be essential to avoid penalties and ensure long-term operational stability.

Foreign Investment Rules: Opportunities and Restrictions

Jordan’s business law framework for foreign investment is shaped by a blend of liberalization policies and targeted restrictions. The principal legislation governing foreign participation is the Investment Environment Law No. 21 of 2022, which came into effect to consolidate and modernize previous investment regulations. This law establishes the legal basis for foreign ownership, guarantees, and incentives, and is implemented by the Ministry of Investment, Jordan’s primary authority for investment affairs (Ministry of Investment).

Foreign investors in Jordan generally enjoy national treatment, with 100% ownership permitted in most sectors. However, the law maintains a “negative list”—sectors where foreign participation is restricted or prohibited. These include, but are not limited to, certain professional services, wholesale and retail trade in specific goods, customs clearance, stone quarrying, and passenger transport. In some sectors, foreign ownership is capped at 50% or less, and joint ventures with Jordanian partners are mandatory (Ministry of Investment).

To promote investment, Jordan grants incentives such as customs exemptions, reduced income tax rates, and simplified procedures in designated Development and Free Zones. As of 2024, there are over 40 such zones, hosting projects in manufacturing, logistics, ICT, and tourism. The Ministry of Investment reports that foreign direct investment (FDI) inflows reached approximately JOD 800 million in 2023, marking a steady post-pandemic recovery (Ministry of Investment).

Compliance requirements for foreign investors include registration with the Companies Control Department and obtaining sector-specific licenses. Anti-money laundering and anti-corruption measures have been tightened in recent years, in alignment with recommendations by the Financial Action Task Force (FATF), and the Central Bank of Jordan oversees compliance for financial sector participants (Companies Control Department; Central Bank of Jordan).

Looking ahead to 2025 and beyond, the government has signaled intent to further streamline investment processes and expand the list of sectors open to foreign capital, particularly in technology and renewable energy. Amendments to digital business regulations and e-commerce are expected to enhance the attractiveness of the market for international investors. Nevertheless, regional geopolitical uncertainty and regulatory consistency remain key concerns for foreign businesses evaluating entry or expansion in Jordan.

Labor Laws and Workforce Compliance for Businesses

Jordan’s labor laws and workforce compliance frameworks are central to its business environment in 2025, shaped by ongoing regulatory reforms and economic modernization goals. The primary legislative instrument is the Labor Law No. 8 of 1996 and its amendments, administered by the Ministry of Labor. Recent years have seen intensified efforts to modernize workforce regulations, strengthen worker protections, and enhance labor market flexibility to align with international standards and the country’s Vision 2025 objectives.

Key developments include amendments to labor law provisions on contracts, minimum wage, and worker benefits. The national monthly minimum wage, for instance, was increased to 260 Jordanian Dinars in 2024, a move that directly affects cost structures for businesses and aims to support living standards (Ministry of Labor). The Law requires written contracts for all employees and strictly regulates working hours, overtime, and termination procedures to ensure due process and prevent arbitrary dismissal.

Compliance with workforce regulations is rigorously monitored through inspections and penalties. Businesses are obligated to register employees with the Social Security Corporation and provide social security coverage, including for work injuries and maternity leave (Social Security Corporation). As of early 2025, over 1.4 million workers are covered by social security, reflecting a broad compliance base. Recent digitalization initiatives have streamlined reporting and registration, reducing administrative burdens for employers.

Jordan has also made strides in combating workplace discrimination and promoting gender equality. Amendments have strengthened protections for female workers, including extended maternity leave and anti-harassment measures. The government continues to work towards closing the gender gap in labor force participation, which remains below 18% for women according to the latest official figures (Department of Statistics).

Foreign workforce regulation remains a focal point of compliance. Employers must secure work permits for non-Jordanian workers, with priority given to local employment. Enforcement measures have been stepped up, with increased inspections and penalties for unauthorized employment. The Ministry of Labor has also introduced sectoral quotas and restrictions in certain industries to manage labor market dynamics and reduce unemployment among Jordanians.

Looking ahead, the outlook for labor law compliance in Jordan involves further digital transformation of regulatory processes, stricter enforcement, and continued alignment with international labor standards. Businesses operating in Jordan in 2025 and beyond must closely monitor regulatory changes and maintain robust compliance systems to avoid penalties and support sustainable workforce management.

Intellectual Property Rights: Protection and Enforcement

Intellectual property rights (IPR) protection and enforcement are critical elements of business law in Jordan, aligning with the country’s strategic goals to foster innovation, attract foreign investment, and comply with international obligations. Jordan is a member of the World Trade Organization (WTO) and a signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), as well as several international conventions such as the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works. These memberships have driven the evolution of the national legal framework for intellectual property.

Jordan’s primary IP legislation includes the Copyright Law No. 22 of 1992 (as amended), the Patents Law No. 32 of 1999 (as amended), the Trademarks Law No. 33 of 1952 (as amended), and the Designs and Industrial Models Law No. 14 of 2000. These laws are administered by the Ministry of Industry, Trade and Supply, which oversees registration, protection, and enforcement processes for patents, trademarks, industrial designs, and copyrights.

Recent developments up to and including 2024 highlight Jordan’s ongoing efforts to modernize its IP regime. The government has focused on digitizing IPR registration and management to improve efficiency and transparency. For example, the introduction of an electronic portal for trademark and patent applications has reduced processing times and increased accessibility for businesses and individuals. According to the Ministry of Industry, Trade and Supply, trademark applications exceeded 7,000 in 2023, while over 1,100 patent applications were filed, reflecting steady growth in IP awareness and activity.

Enforcement remains a challenge, particularly regarding counterfeit goods and software piracy. The Jordan Customs Department collaborates with the judiciary and other stakeholders to seize counterfeit products and prosecute violators. In 2023, customs authorities reported more than 400 seizures of counterfeit goods, primarily in the apparel, electronics, and cosmetics sectors. The Judicial Authority has established specialized commercial courts to expedite IP disputes, enhancing judicial capacity and predictability for rights holders.

Looking ahead to 2025 and beyond, Jordan is expected to continue strengthening IP compliance through increased cross-border cooperation and harmonization with international best practices. The government’s “Vision 2025” emphasizes knowledge-based economic growth, with IPR protection as a core enabler. Legislative amendments are anticipated to further align with evolving global standards, particularly in digital content and biotechnology. As enforcement mechanisms mature and awareness campaigns expand, businesses operating in Jordan can expect a progressively more robust environment for intellectual property protection.

Dispute Resolution and Judicial Processes

Dispute resolution and judicial processes represent critical pillars within Jordan’s evolving business law landscape. As of 2025, Jordan’s legal infrastructure continues to blend civil law traditions with modern reforms aimed at increasing efficiency, transparency, and international compatibility. Disputes arising from commercial transactions, contractual obligations, intellectual property, and regulatory compliance are primarily addressed through the national court system, with alternative dispute resolution (ADR) mechanisms gaining increasing prominence.

Jordan’s judiciary is structured into regular courts (First Instance, Appeals, and the Court of Cassation) and specialized bodies such as the Judicial Council, which oversees judicial appointments and discipline. Commercial disputes are typically heard in civil courts, but reforms in recent years have streamlined case management and introduced specialized economic chambers in the Amman Court of First Instance to accelerate business-related cases (Ministry of Justice).

The government has prioritized enhancing judicial efficiency and reducing backlog. The Ministry of Justice reports that, following the digitization of case registration and management, the average time to resolve commercial disputes has dropped by approximately 20% since 2020. Furthermore, Jordan’s courts have adopted mandatory pre-trial mediation in certain civil and commercial cases, contributing to a growing preference for ADR.

Arbitration is governed by the Arbitration Law No. 31 of 2001 (as amended), which aligns with UNCITRAL Model Law standards. The Amman Chamber of Commerce and the Jordan Arbitration Center provide institutional arbitration services that are widely used by domestic and international investors. Arbitration clauses are now standard in many commercial contracts, particularly in sectors with cross-border elements.

Jordan is a signatory to the New York Convention (1958), facilitating recognition and enforcement of foreign arbitral awards (Ministry of Justice). In practice, the enforcement process in Jordan has become more predictable, although parties may still face procedural challenges, especially in complex or high-value cases.

Looking ahead, ongoing judicial training, further digital transformation, and regulatory amendments are expected to enhance dispute resolution processes. The government’s “Judicial Development Strategy 2022–2026” targets further improvements in transparency, case tracking, and international collaboration (Judicial Council). As ADR mechanisms mature and judicial reforms deepen, Jordan’s business environment is poised for greater legal certainty and investor confidence in 2025 and beyond.

Key Statistics: Business Law in Numbers (Sources: legalaffairs.gov.jo, mof.gov.jo, jipa.jo)

Business law in Jordan has undergone significant transformation in recent years, with the government implementing reforms aimed at enhancing the legal and regulatory environment for businesses. As of 2025, key statistics illustrate both the progress and ongoing challenges in this area. According to the Ministry of Legal Affairs, over 1,200 new commercial laws, amendments, and executive regulations have been enacted or updated since 2020, covering areas such as company formation, e-commerce, bankruptcy, and intellectual property. These efforts are part of a broader modernization strategy aligned with Vision 2025, which seeks to position Jordan as a regional business hub.

• There are currently about 45,000 registered companies in Jordan, with 3,800 new business registrations recorded in 2024 alone, reflecting resilience and investor confidence despite regional instability (Ministry of Finance).
• The annual number of commercial litigation cases filed in the courts has remained stable, with approximately 7,500 cases filed in 2024, and the average resolution time for commercial disputes now reduced to 14 months—a marked improvement from the 20-month average in 2020 (Ministry of Legal Affairs).
• Intellectual property registrations continue to rise: in 2024, over 1,600 trademark applications and 280 patent applications were processed, according to the Jordan Intellectual Property Association.
• Compliance rates with new anti-money laundering and corporate disclosure regulations have reached 92% among publicly listed companies, following targeted enforcement campaigns (Ministry of Finance).

Looking ahead, the outlook for business law in Jordan remains positive. The government is prioritizing further digitalization of legal processes, with plans to introduce fully electronic company registry and court filing systems by 2026 (Ministry of Legal Affairs). Additionally, ongoing harmonization with international standards—especially in areas such as data protection and commercial arbitration—is expected to further enhance the business climate. These changes are likely to continue fostering legislative transparency, increased foreign investment, and efficient dispute resolution in the coming years.

Future Outlook: Predicted Reforms and Strategic Considerations (2025–2030)

Jordan’s business law landscape is poised for significant evolution between 2025 and 2030, driven by the government’s ongoing economic modernization agenda and commitments to enhance the investment climate. Recent years have seen foundational legislative changes—such as the 2018 Companies Law amendments and 2022 digital business regulations—laying the groundwork for further reforms aimed at increasing competitiveness, transparency, and compliance with international standards.

One of the key developments anticipated is the continued digitalization of business registration, licensing, and compliance processes. Following the launch of the Companies Control Department’s online portal, authorities are expected to further streamline procedures, reduce bureaucratic hurdles, and improve transparency for foreign and domestic investors through full digital integration by 2027. Additionally, the government has signaled intentions to align commercial and investment legislation with international norms, particularly in areas such as anti-money laundering, data privacy, and corporate governance.

Another important area of reform involves dispute resolution and contract enforcement. The Judicial Council continues to pursue judicial efficiency initiatives, including expanded use of electronic court services and specialized commercial courts. These efforts aim to reduce case backlogs and speed up commercial dispute resolution. According to the Ministry of Industry, Trade and Supply, average case resolution times have already decreased by 15% since 2022, with further reductions targeted as digital adoption increases.

On the compliance front, Jordan is expected to introduce more robust corporate reporting requirements and strengthen enforcement mechanisms for anti-corruption and anti-money laundering statutes. The Central Bank of Jordan and the Jordan Securities Commission are collaborating on regulatory updates to enhance transparency in financial transactions and prevent illicit activity, in line with Financial Action Task Force (FATF) recommendations.

The regulatory landscape for foreign investment is also likely to become more favorable. The Jordan Investment Commission has outlined plans to further liberalize sectors for foreign participation and provide incentives for projects in technology, renewable energy, and logistics. These strategic adjustments are projected to increase foreign direct investment inflows by an estimated 8% annually through 2030, according to government projections.

In summary, between 2025 and 2030, Jordan’s business law environment will be characterized by modernization, increased digitalization, and alignment with international best practices. Companies operating in Jordan should closely monitor legislative updates, invest in compliance infrastructure, and consider strategic partnerships to navigate the evolving legal framework.

Sources & References

• Ministry of Finance
• Ministry of Industry, Trade and Supply
• Jordan Securities Commission
• Amman Chamber of Industry
• Ministry of Justice
• Companies Control Department
• Income and Sales Tax Department
• Ministry of Finance
• Ministry of Investment
• Ministry of Labor
• Social Security Corporation
• Jordan Customs Department
• Amman Chamber of Commerce