Jordan Sees 8% Surge in New Company Registration in Q1 2024

Jordan Sees 8% Surge in New Company Registration in Q1 2024
AMMAN - The inaugural quarter of 2024 saw a notable 8 percent surge in the number of registered companies compared to the corresponding period in 2023, indicating a promising trend in Jordan's corporate landscape.اضافة اعلان

According to data sourced from the Companies Control Department and reported by the Jordanian News Agency (Petra), a total of 1,623 new companies were registered between January and March this year, marking a significant increase from the 1,501 registrations recorded in the same timeframe last year.

Further analysis reveals a robust 16 percent uptick in registered companies when compared to the pre-pandemic conditions of 2019, underlining a positive trajectory in the business sector's recovery.
The cumulative registered capital for the period exceeded JD64.5 million, with limited liability companies comprising the majority share at 71.5 percent, boasting a registered capital surpassing JD24.6 million.
Interestingly, the number of companies facing deregistration plummeted by 61 percent compared to 2019 figures, with only 613 companies experiencing cancellation, as opposed to 1,587 in the aforementioned year. Moreover, there was a marginal 2 percent reduction in deregistrations compared to 2023 statistics.

Notably, the ratio of new registrations to cancellations for the first quarter of 2024 improved to 62 percent, up from 58 percent in 2023 and a significant improvement from the negative 13 percent observed in 2019.

Capitalization trends also witnessed a positive trajectory, with the total capitalization of companies surging to approximately JD184 million during the first quarter of this year. This increase was fueled by capital injections exceeding JD200 million, offset by minor reductions totaling approximately JD16 million.

Wael Armouti, the General Controller of Companies, attributed this buoyancy in the corporate sector to recent reforms introduced through the amended Companies Law, which came into effect late last year.

These reforms, part of the broader economic modernization vision, streamlined various procedures including advertisements, general assembly meetings, capital deposits, and registration processes, thereby fostering an environment conducive to business growth and development.

The Companies Control Department plays a pivotal role in overseeing the registration and management of various types of companies within the Kingdom, ensuring compliance with legal and financial regulations, and facilitating necessary amendments and changes to company structures.

This data underscores Jordan's continued commitment to fostering a vibrant and resilient business ecosystem, poised to capitalize on emerging opportunities and navigate evolving economic landscapes.

Read more Sponsored Content
Jordan News