If you’re an entrepreneur or digital nomad frustrated by complex tax regimes and intrusive business regulations, you’re not alone. Many are searching for straightforward, flexible ways to operate internationally—without unnecessary state interference. In this post, we’ll break down the availability and conditions of the Sole Proprietorship (المؤسسة الفردية) in Jordan as of 2025, using only the latest, verified data. Whether you’re considering Jordan as a base or simply benchmarking global options, you’ll find actionable insights and practical steps below.
Understanding Sole Proprietorship Status in Jordan (2025)
Jordan offers a clear path for individuals to operate as a Sole Proprietorship—a business structure that allows a single person to conduct commercial activities and invoice clients without forming a separate legal entity. This status is widely used and accessible to Jordanian citizens, making it a pragmatic choice for those seeking simplicity and autonomy.
Key Features at a Glance
| Feature | Details (2025) |
|---|---|
| Status Name | Sole Proprietorship (المؤسسة الفردية) |
| Legal Entity | Not separate from owner; full personal liability |
| Registration | Required with Companies Control Department (CCD), Ministry of Industry, Trade and Supply |
| Taxation | Individual income tax rates (progressive, see below) |
| VAT Registration | Mandatory if turnover exceeds JOD 75,000 (~$106,000) |
How Taxation Works for Sole Proprietors in Jordan (2025)
Unlike some jurisdictions where business and personal taxes are separate, Jordan’s sole proprietorships are taxed at the individual level. Here’s how the progressive tax system applies in 2025:
- 5% for income up to JOD 5,000 (~$7,100)
- 10% for the next JOD 5,000 (~$7,100)
- 15% for the next JOD 5,000 (~$7,100)
- 20% for the next JOD 5,000 (~$7,100)
- 25% for income above JOD 20,000 (~$28,300)
Mini Case Study: If your annual net profit is JOD 30,000 (~$42,500), your tax liability would be calculated progressively across these brackets, with the highest portion taxed at 25%.
Pro Tip: Optimize Your Tax Burden in Jordan
- Register Efficiently: File your sole proprietorship with the CCD (official portal). Ensure all documentation is accurate to avoid delays.
- Track Your Turnover: Monitor your annual revenue. If you approach the JOD 75,000 (~$106,000) VAT threshold, plan for registration and compliance to avoid penalties.
- Leverage Deductions: As a sole proprietor, you can deduct legitimate business expenses from your taxable income. Keep meticulous records to maximize your after-tax profit.
- Stay Updated: Tax rates and thresholds can change. Always reference the latest official sources, such as the Income Tax Law and business registration guides.
Checklist: Setting Up a Sole Proprietorship in Jordan
- Confirm eligibility as a Jordanian citizen
- Prepare required documents (ID, business address, etc.)
- Register with the CCD (link)
- Register for VAT if turnover exceeds JOD 75,000 (~$106,000)
- File annual tax returns using individual income tax rates
Summary: Is Jordan’s Sole Proprietorship Right for You?
Jordan’s sole proprietorship status offers a streamlined, accessible route for individuals seeking to operate with minimal bureaucratic friction. While personal liability is a consideration, the progressive tax rates and clear registration process make it a viable option for those prioritizing autonomy and efficiency in 2025.
For further details, consult these official resources:
- Starting a Business in Jordan (Ministry of Industry, Trade and Supply)
- Companies Control Department: Individual Institution
- Income Tax Law
- Individual Institution Registration (Jordan e-Government)
Stay informed, optimize your structure, and keep your entrepreneurial freedom front and center.