Welcome to the Saudi Arabia focus edition of Law Update.
One of the key markets in the Middle East and North Africa (MENA) that continues to lead from the front is the Kingdom of Saudi Arabia (KSA). As the largest country in the Middle East and the 18th largest economy in the world, the progress KSA continues to make is underpinned by its Vision 2030 that envisions developing the country as an investment powerhouse and hub that ultimately connects Asia, Europe, and Africa. Given Saudi Arabia’s significance to the regional economy, our team of experts have prepared a range of pertinent articles that provide insights into new laws, regulations, and the legal landscape in the Kingdom.
This edition will provide you with an up-to-date guide on matters such as; the framework issued by the Saudi Central Bank on IT governance, the anti-corruption landscape under Vision 2030; we also provide practical tips for dispute avoidance. This is only a snapshot; there are many more articles within the KSA focus section for you to read, which we hope you will find valuable and enjoyable.Read the edition
Abdallah Al Fraihat
According to the Law, an Operating Foreign Company means a Company or an entity which is registered outside the Kingdom, whose headquarters are in another country and whose nationality is considered non-Jordanian.
In terms of its nature it shall be divided into two main types:
As for the registration of the operating foreign company in Jordan, Article 241 of the Law states that the registration application for the Foreign Company or entity shall be submitted to the Controller of Companies (the “Controller”) accompanied by the following data and documentation. However, it is important to note that the required documents are to be translated into Arabic, provided that the Arabic translation is certified by a Notary Public inside the Kingdom.
Some of the important documents required for the registration of a foreign company in Jordan include the following:
Please note that all the abovementioned documents are to be duly certified by the Jordanian Embassy or Consulate, as well as the Ministry of Interior in the foreign country. Additionally, all the documents are to be duly certified at the Jordanian Ministry of Exterior as well as the Ministry of Justice.
Furthermore, the application for the registration of the operating foreign company in Jordan must be signed by the person authorized to register the Company before the Controller, the person authorized by him in writing, or the Notary Public. The application must also incorporate the fundamental information about the Company, including, but not limited to, the following:
(a) The name of the Company, its form and capital.;
(b) The objectives of the Company, established within the Kingdom.;
(c) Detailed information about the founders, partners. or the Board of Directors and the share of each of them.; and
(d) Any other data or information whose submittal is deemed necessary by the Controller.
Additionally, the Law has entrusted the Controller with the power to accept or reject the registration of the Foreign Company or entity in Jordan. In the event of the approval of registration, the legal registration procedures of the Company or entity in the Foreign Companies Register shall be completed and shall be published in the Official Gazette upon collecting the legal fees.
Finally, it is important to stress some of the obligations ensued on the foreign company upon registration in the Kingdom. According to the Law, the foreign company registered in Jordan shall undertake the following:
(a) To submit to the Controller within three months from the end of each fiscal year its balance sheet and the profit and loss account of its operations in the Kingdom duly certified by a Jordanian licensed auditor.
(b) To publish the balance sheet and the profit and loss account regarding its operations in the Kingdom in at least two local daily newspapers within sixty (60) days from the date of submitting these statements to the Controller.
The Minister may exclude any Company from implementing the above upon the recommendation of the Controller.