Jordan SubsidiaryReading Time: 3 minutes
You can’t work in any foreign country without a subsidiary. Completing the Jordan subsidiary setup process will ensure that you stay compliant and can start hiring employees, adding them to payroll, and dispersing benefits. Without a registered entity, you’ll face fines, deal with delays in the ability to work, and won’t fully benefit from operating in Jordan.
Setting up your Jordan subsidiary can take up to a year — time you could have used to work in Jordan. Globalization Partners offers Jordan subsidiary outsourcing to help you expand quickly without your own subsidiary. You can use our existing PEO to work in as little as a day or two, and we’ll take on compliance as the Employer of Record. With our experienced and knowledgeable team on your side, you can feel confident and focus exclusively on growing your company.
How to Set up a Jordan Subsidiary
If you don’t know how to set up a Jordan subsidiary, you’re not alone. Many companies try to expand without focusing on the many considerations that impact the incorporation process. You should not set up your Jordan subsidiary until you research the different cities and regions in the country. Then, choose an office building in an area that’s friendly to foreign incorporation and has favorable Jordan subsidiary laws.
Next, you have to look at what type of subsidiary is best for your business goals. You can incorporate as a general partnership, limited partnership, limited partnership by shares, or private shareholding company. A limited partnership by shares, also known as a limited liability company (LLC), is a common option for most companies. This structure is popular because it protects the parent company and gives the subsidiary a high degree of freedom for operating in Jordan.
Setting up your subsidiary as an LLC includes the following steps:
- Presenting Articles of Memorandum of Association of the parent company
- Completing official documentation showing that your business obtained approval from the relevant authorities
- Presenting a list of board of directors’, management board’s, and shareholders’ names and nationalities
- Creating a copy of the power of attorney showing that you authorized an individual who lives in Jordan to undertake activities
- Drafting a financial statement for the last fiscal year of your parent company and getting it certified by a licensed auditor
- Completing an application form
- Legalizing all documents with the embassy or consulate of Jordan in the parent company’s country of origin
Jordan’s Subsidiary Laws
You need to follow Jordan’s subsidiary laws that relate to your specific structure. Your company can incorporate as an LLC with just a single shareholder, but you’ll need a prior agreement with the Companies’ Registrar Commissioner. Shareholders can be of any nationality, but foreign shareholders must make a minimum share capital contribution of $70,650. If you’re investing in a restricted sector, you may need to create a joint venture agreement with a partner who is a Jordan citizen.
All LLCs must be managed by at least one director who can be of any nationality and does not have to live in Jordan. Since LLCs perform a wide range of activities like a resident company, you’ll have to choose a licensed audit firm to look at your annual financial statements. Then, you must file them with the Jordanian Companies Registrar before April 30.
Benefits of Completing the Jordan Subsidiary Setup Process
Finishing the Jordan subsidiary setup process will let you work in the country without any restrictions. A limited liability structure will protect your shareholders, as their liability will be restricted to what they contribute in share capital. You also won’t have to worry about your parent company, as it can operate independently of the subsidiary.
Globalization Partners provides all the benefits of establishing a subsidiary without actually incorporating your own entity. By using our compliant entity, you can ensure that your company will meet Jordan’s subsidiary laws. You won’t have to worry about compliance, hiring, benefits, or other important parts of your expansion when you work with us.
What Do You Need to Set up Your Jordan Subsidiary Successfully?
Does your company have a global compliance expert? If not, you’ll need to hire a lawyer, accountant, or consultant who can help you stay compliant and follow Jordan’s subsidiary laws. We also recommend setting aside money and time to set up your Jordan subsidiary successfully.
Globalization Partners Will Help You Expand Today
You can count on Globalization Partners for a fast and easy expansion. Contact us today to learn more about Jordan subsidiary outsourcing.