Jordan free zones

Jordan free zones

Since 2003, Healy Consultants assists our Clients with incorporating their company into Jordan’s numerous special economic zones, in order to benefit from numerous tax advantages and easier incorporation requirements. The Jordan authorities distinguish two types of special economic zones: i) free trade zones and ii) development zones.

The Jordanian free trade zones

    Setup free zone company in Jordan
  • The Jordanian free trade zones (FTZ) are large estates offering industrial, commercial and storage facilities to foreign investors. FTZs are an ideal location for manufacturing companies exporting their products abroad, thanks to i) low cost of industrial and warehousing space and ii) their convenient location close to cities, coastal areas and transport hubs, which may also appeal to entrepreneurs involved in the tourism business;
  • The Jordan authorities currently operate 6 free trade zones: i) Aqaba FTZ, the country’s largest with the most generous benefits ii) Al Karama FTZ iii) Al Karak FTZ iv) Sahab FTZ v) Zarqa FTZ and vi) Queen Alia International Airport FTZ;
  • These free zones offers advantages including i) 100% foreign ownership, even in restricted sectors ii) subsidized real estate iii) and no custom duties on all imported products required for the company’s operations. The Aqaba FTZ additionally offers i) a reduced corporate tax rate of 5% ii) exemption from property tax and iii) a 70% quota on foreign employees;
  • In order to conduct operations in a Free Trade Zone, a company must obtain approval from i) the Aqaba Special Economic Zone Authority if incorporating in Aqaba or ii) the Jordanian Free Zone Corporation, if incorporating in all other FTZs. Healy Consultants may assist our Clients interested to run operations in an FTZ to i) evaluate the eligibility of their project ii) draft a detailed business plan fulfilling registration requirements and iii) register their company directly with the relevant government entity.

The Jordanian development zones

  • The Jordan authorities currently operate 6 development zones, which are industrial estates located inside Jordan’s main cities: i) King Hussein Bin Talal Mafraq Development Zone ii) Ma’an Development Zone iii) Irbid Development Zone iv) Dead Sea Development Zone v) Jabal Ajloun Development Zone and vi) Amman Business Park Development Zone;
  • All 6 development zones offer identical benefits for operations conducted in the free zone, including i) 100% foreign ownership, including restricted sectors ii) a reduced corporate tax rate of 5% iii) exemption from VAT iv) exemption from all custom duties on all imported products required for the company’s operations v) no quota on foreign employees and vi) no social security contributions and payroll tax on foreign employees’ salaries;
  • In order to conduct operations in a development zone, a company must obtain approval from the Development and Free Zones Commission (DFZC). Healy Consultants may assist our Clients interested to run operations in a development zone to i) evaluate the eligibility of their project ii) draft a detailed business plan fulfilling registration requirements and iii) register their company directly with the DFZC’s One Stop Shop.

Table of comparison between Jordanian free zones

Free zone comparisonAqaba FTZOther Jordan FTZsJordan Development zones
FTZs used mostly by which industry?ManufacturingManufacturing and/or tourismIT industries
How long to set the company up?6 weeks8 weeks4 weeks
Registration with which government agency?Aqaba SEZAFree Zones CorporationDFZC
How long to open company bank account?4 weeks4 weeks4 weeks
Quality of utilitiesExcellentGoodExcellent
Allowed to sign sales contracts with Jordan Clients?YesYesYes
Allowed to invoice Jordan Clients?YesYesYes
Agent required to conduct business outside of FTZs?YesYesYes
Benefits for operations outside of FTZs?NoNoNo
Corporate tax payable in Jordan5%20%5%
Corporate bank account options?Arab BankHSBCStandard Chartered
Physical office space requiredYesYesYes
Subsidies for land purchases?10%10%10%
Allowed to import raw materials?YesYesYes
Allowed to export goods?YesYesYes
No duties on imports and exports?YesYesYes
VAT exemption on imports?YesYesYes
VAT exemption on products sold in Jordan?NoNoYes
Can be wholly foreign ownedYesYesYes
Can the entity hire expatriate staff in Jordan?YesYesYes
Foreign employee quota of?70%50%100%
Payroll tax exemption for foreign employees?YesNoYes
Social security contributions exemptions for foreign employees?YesNoYes
Minimum number of directors111
Minimum number of shareholders111
Tax registration certificate requiredYesYesYes
Individual shareholders allowedYesYesYes
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedNoNoNo
LLC company allowed?YesYesYes
Annual financial statements?YesYesYes

Contact us

For additional information on our free zone company registration services in Jordan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
MIT - Jordan Ministry of Interior in Jordan Jordan investment board Ministry of Labour - Jordan