Understanding Company Types
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Before registering a company, it is important to understand the basic differences between company types.
This guide explains the main characteristics of three company types: Limited Liability Companies, General Partnerships, and Limited Partnerships. These company types differ in areas such as the number of partners, the responsibility of partners for company debts and obligations, company naming, and capital.
Limited Liability Company
A Limited Liability Company may be established by one or more partners.
Each partner's responsibility for the company's debts and obligations is limited to their share in the company's capital.
Company Name
The company is registered under a name derived from its business activities. The words "Limited Liability" must be added to the company name and may be abbreviated in Arabic.
Capital
The minimum registered capital is JOD 1, unless the company's activities require a higher minimum capital.
Limited Partnership
A general partner is responsible for the company's debts and obligations in the same way as a partner in a General Partnership.
Limited Partners
A limited partner's responsibility for the company's debts and obligations is limited to their share in the company's capital.
A limited partner does not have the right to participate in the management of the company.
Company Name
The name of a Limited Partnership may only include the names of the general partners. If there is only one general partner, wording indicating that there are other partners must be added.
The name of a limited partner must not appear in the company name.
Compare the Company Types
The table below summarizes the main differences covered in this guide.
Table here