Jordan

Jordan - thanks to its economic policy oriented towards attracting foreign capital and diversification of business partners, as well as its strategic location as a gateway to the Middle East and North &ndash area; constitutes a significant opportunity for entrepreneurs, both Italian and foreign, interested in investing abroad.

Foreign investment regulations are governed by the Investment Promotion Law (IPL) (l.n.16/1995), Regulation 54/2000, as well as Laws Nos. 67 and 68/2003, which provide a series of tax incentives, exemptions and facilities for foreign investors.

The IPL has, then, identified certain sectors as priorities and beneficiaries of significant facilities. In particular:

• Industrial sector
• Agriculture
• Tourism
• Hospital sector
• Maritime and land transportation
• Information technology
• Energy and petroleum

Foreign investors can freely access the Jordanian market without special restrictions related to nationality, except for certain sectors such as real estate, tourism and banking.

The great openness on the part of Jordan to foreign investment is also evident from the establishment of six Special Economic Zones (so-called “ZES”), i.e., areas with infrastructure and space for activities, which, through the application of tax incentives for companies located there, aim to create advantageous conditions for the start-up of new business activities or, indeed, to attract foreign investors.

By way of example, there are sales tax exemptions, exemptions from customs duties for all imported goods for the implementation of economic activities, no limits on the’use of foreign employees, and exemption from the payment of social contributions. It is also recognized that it is possible to establish companies with full foreign participation.

Since 1998, Jordan has also been a member of the Greater Arab Free Trade Area (GAFTA), as well as of the Pan-Arab free trade area (PAFTA), comprising the same countries excluding Algeria but with the accession of Tunisia.

With reference to the Union plan, relations with Jordan have achieved significant development in recent decades, characterized by the achievement of agreements aimed at promoting and facilitating trade.

In 2011, the Council of the European Union, then, adopted directives for a negotiation aimed at establishing a comprehensive free trade area with Jordan (so-called “Deep and Comprehensive Free Trade Area”, DCFTA). Although, as of today, negotiations have not yet begun, the DCFTA aims to overcome the obstacles posed by the current regulations of the Association Agreement – signed in 1997 between the EU and Jordan for the establishment of the free trade area--particularly in the areas of trade in services, government procurement, intellectual property rights”and investment protection.

The entrepreneur who intends to invest in Jordan will also have to arrange for the registration of his trademark.

In Jordan, intellectual property è is protected by a number of different pieces of legislation, including the Copyright Law, the Trademark Law, the Patent Law, the Industrial Designs Law, the Trade Secrets Law, and the Unfair Competition Law; as well as related ministerial regulations and instructions. Together, they contribute to a comprehensive system of intellectual property rights. Jordan’s experience in trademark protection è began as early as 1952, with the establishment of the first trademark law.

The period of validity of a trademark è is ten years from the date of registration, renewable for similar periods indefinitely.

Before registering one's trademark, è it is desirable to carry out not only a prior search on the existence, or non-existence, of an identical – or too similar – trademark already registered in Jordan, but, at the same time, also a careful study on the transliteration into Arabic of the trademark one intends to register. Indeed, it could be the case that a trademark considered to have particular appeal in one's own language could take on an entirely different meaning if it is slavishly translated into Arabic. Finally, Jordan's Trademark Law gives the owner of a trademark the right to use his trademark, i.e., to sell, mortgage and license it. The license contract – according to Jordanian law – è is subject to the requirement of written form and must be registered with the Trademark Registration Office of the Ministry of Industry and Trade. The contract è valid even if it has not the entire product but rather a part of it, however, the duration cannot exceed the period of trademark registration.

In Jordan, the agency contract è is regulated by the Commercial Code and the Commercial Agents and Intermediaries Law No. 28 of 2001. The latter broadly defines the figure of the commercial agent, encompassing different categories of intermediaries, such as commission agents, agents who distribute in their own name (distributors), and agents who distribute on behalf of a foreign company or merchant based outside Jordan (commercial agents).

The Jordanian Commercial Code defines commercial agency as a legal relationship in which an agent acts on behalf of a principal. However, the concepts of commercial agency and other intermediary arrangements, such as distribution, are not clearly distinguished within the Jordanian legal system.

The Jordanian Commercial Code defines commercial agency as a legal relationship in which an agent acts on behalf of a principal.

This legislative ambiguity can, certainly, generate uncertainty for entrepreneurs, with reference to the determination and qualification of contractual relationships. For this reason è it is essential that entrepreneurs and business professionals in Jordan seek specialized advice that can provide clarity and guide them in managing their agency practices.

In this sense, Studio Legale de Capoa, offers comprehensive and rapid advice in managing in business negotiations and corporate transactions in the Jordanian territory.

Commercial agents in Jordan are subject to specific nationality and registration requirements. presence of an office in Jordan.

The role of agent canò be held by either a natural person or a legal person, provided theyé have Jordanian citizenship/registered office. In addition to the nationality requirement, a commercial agent must be duly registered with the Register of Commercial Agents of the Ministry of Industry and Trade.

The commercial agent must also be registered with the Ministry of Industry and Trade.

Jordanian law does not allow for sub-agents, as the agent must fulfill contractual obligations in person. The law does not grant exceptions or discretion in this regard.

With reference, then, to the agent’s right to commission, the law does not impose specific quantitative limits (as a general rule, a percentage of the economic value of the contract is agreed upon). The Jordanian legal system, moreover, does not make the right to collect commission conditional on the conclusion of the deal. In this sense, a commissioned agent can, legitimately, claim commission for all contracts concluded with parties located within the designated area or with specified clients, regardless of whether he or she did not actually participate in the transaction.

The law does not define the exact time at which the commission is to be paid. Such payment could take place at the end of the supplier's execution of the transaction, but in the absence of a different contractual provision, it is è customary for the principal to make commission payments on a monthly basis.