Jordan offshore company in 2023
What is a Jordanian offshore company?
- An offshore company is a company which i) has been previously incorporated outside of Jordan and ii) registered in Jordan as a “foreign non-operating entity”, henceforth not allowed to pursue commercial or productive activities within the Kingdom. The words “exempt company” must also be added to its name;
- Jordan offshore companies are therefore mainly used by businessmen to:
- Serve as regional headquarters for their Middle East operations;
- Sign contracts corresponding to operations executed outside of Jordan and receive related revenue;
- Hold both Jordanian and foreign shares and other assets;
- Minimize taxation and protect the privacy of our Client’s net wealth and revenue.
- An offshore company can be registered with only i) US$1 of share capital ii) one corporate shareholder and iii) one director, whom can be of any nationality. The Ministry of Trade and Investment will still require a registered address in Jordan, which can be provided by Healy Consultants to our Clients;
- Healy Consultants recommends our Clients to select a company with at least two years of existence to serve as their offshore company’s parent company. Jordanian authorities will indeed request the two last audited financial statements in order to approve the offshore company’s registration in Jordan.
What are the advantages of incorporating a offshore company in Jordan?
- Such company benefits from reduced registration requirements, including:
- Foreigners may register an offshore company with a share capital of only US$1, while they must contribute at least US$70,650 to setup other Jordanian business entities;
- Offshore companies i) do not need to publish an incorporation notice in the official gazette and ii) are also exempt from registration requirements with the Jordanian Chamber of Commerce and Chamber of Industry.
- Our Clients find that a offshore company is great to receive foreign-sourced income, because:
- Such business entity will be able to receive earnings from abroad on its non-resident corporate account in Jordan, which will be exempted from all transfer commission fees charged by the Central Bank;
- All foreign-source earnings remitted to an offshore company are exempt from i) corporate tax ii) capital gains tax;
- Our Client’s offshore company will also not pay withholding tax on dividends distributed to its foreign parent company;
- Taxes levied by foreign governments will be reduced by Jordan’s double taxation avoidance agreements with 35 countries including Canada, France, India, Indonesia, Malaysia, Qatar and the United Kingdom.
- The operational costs of an offshore company in Jordan will be low, thanks to:
- Very low labor costs – monthly wages in Jordan i) are recorded at an average of US$560 and ii) can be as low as US$230, as such is the minimum wage enacted by Jordanian Labor Law;
- Employers are furthermore exempted to pay i) social contributions and ii) payroll tax on behalf of their foreign employees, who can represent up to 50% of an offshore company’s total workforce;
- Offshore companies are also exempted from all custom duties on the company’s imported i) furniture and ii) car, for which they represent a whopping 85% of the car value.
Table of comparison between a offshore company and a Jordan LLC
|Jordan offshore company||Jordan LLC|
|Also known as:||Non-operating foreign company||WLL|
|Incorporation period?||8 weeks||8 weeks|
|Jordan bank account required?||Yes||Yes|
|Jordan address required?||Yes||Yes|
|Minimum directors allowed?||1||1|
|Minimum share capital?||US$1||US$70,650|
|Corporate tax rate?||0%||14%|
|Individual shareholder allowed?||No||Yes|
|Resident director required?||No||No|
|Payroll tax on foreign employees?||No||Yes|
|Employees Trust Fund contributions on foreign employees?||No||Yes|
|Can buy Jordan property?||Yes||Yes|
|Can rent an office in Jordan?||Yes||Yes|
|Allowed to own Jordan securities?||Yes||Yes|
|Can conduct commercial operations in Jordan?||No||Yes|
|Can conduct productive operations in Jordan?||No||Yes|
|Incorporation costs (Year 1)?||US$31,845||US$34,595|
|Sample engagement fee invoice||View invoice PDF||View invoice PDF|