Jordan free zones in 2022

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 comparison Aqaba FTZ Other Jordan FTZs Jordan Development zones
FTZs used mostly by which industry? Manufacturing Manufacturing and/or tourism IT industries
How long to set the company up? 6 weeks 8 weeks 4 weeks
Registration with which government agency? Aqaba SEZA Free Zones Corporation DFZC
How long to open company bank account? 4 weeks 4 weeks 4 weeks
Quality of utilities Excellent Good Excellent
Allowed to sign sales contracts with Jordan Clients? Yes Yes Yes
Allowed to invoice Jordan Clients? Yes Yes Yes
Agent required to conduct business outside of FTZs? Yes Yes Yes
Benefits for operations outside of FTZs? No No No
Corporate tax payable in Jordan 5% 20% 5%
Corporate bank account options? Arab Bank HSBC Standard Chartered
Physical office space required Yes Yes Yes
Subsidies for land purchases? 10% 10% 10%
Allowed to import raw materials? Yes Yes Yes
Allowed to export goods? Yes Yes Yes
No duties on imports and exports? Yes Yes Yes
VAT exemption on imports? Yes Yes Yes
VAT exemption on products sold in Jordan? No No Yes
Can be wholly foreign owned Yes Yes Yes
Can the entity hire expatriate staff in Jordan? Yes Yes Yes
Foreign employee quota of? 70% 50% 100%
Payroll tax exemption for foreign employees? Yes No Yes
Social security contributions exemptions for foreign employees? Yes No Yes
Minimum number of directors 1 1 1
Minimum number of shareholders 1 1 1
Tax registration certificate required Yes Yes Yes
Individual shareholders allowed Yes Yes Yes
Corporate shareholders allowed Yes Yes Yes
Corporate director(s) allowed No No No
LLC company allowed? Yes Yes Yes
Annual financial statements? Yes Yes Yes

Contact us

For additional information on our free zone company registration services in Jordan, 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