Doing Business 2018 Jordan - World Bank Group
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Doing Business 2018 Jordan
Page 1
Doing Business 2018 Jordan
Economy Profile of Jordan
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Jordan
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Jordan
Ease of Doing Business in DB 2018 Rank
Region Middle East & North Africa
190 1
Jordan
Income Category Lower middle income 103
DB 2018 Distance to Frontier (DTF)
Population 9,455,802
0 100
City Covered Amman 60.58
DB 2018 Distance to Frontier (DTF)
0 100
69.14: Turkey (Rank: 60)
60.58: Jordan (Rank: 103)
56.72: Regional Average (Middle East & North Africa)
56.22: Egypt, Arab Rep. (Rank: 128)
54.67: Lebanon (Rank: 133)
41.55: Syrian Arab Republic (Rank: 174)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Jordan
1
28 40
53
55
72
82
Rank
97
105
110
109 118
136 146 146
159
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Jordan
100
84.40 85.93
83.33
80
70.75
65.74 66.40
60
DTF
53.71
40.00
40
30.53
25.00
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Jordan
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Jordan
Starting a Business - Jordan
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement JOD 2.5
City Covered Amman
Indicator Jordan Middle East & OECD high Overall Best
North Africa income Performer
Procedure – Men (number) 7 7.7 4.9 1.00 (New Zealand)
Time – Men (days) 12 18.6 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 24.2 18.7 3.1 0.00 (United Kingdom)
Procedure – Women (number) 8 8.4 4.9 1.00 (New Zealand)
Time – Women (days) 13 19.3 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 24.2 18.7 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.1 9.9 8.7 0.00 (113 Economies)
Figure – Starting a Business in Jordan and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
87.59: Turkey (Rank: 80)
84.53: Egypt, Arab Rep. (Rank: 103)
84.40: Jordan (Rank: 105)
82.05: Regional Average (Middle East & North Africa)
80.43: Syrian Arab Republic (Rank: 133)
78.17: Lebanon (Rank: 143)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Jordan
Figure – Starting a Business in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
16
12
14
Cost (% of income per capita)
10 12
Time (days)
8 10
8
6
6
4
4
2
2
0 0
1 2 3 *4 *5 6 *7 *8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Jordan
Details – Starting a Business in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 APPLIES TO WOMEN ONLY: Obtain husband's permission to leave the 1 day no charge
home
Agency : Domicile
According to the Personal law Status, a wife must obtain permission to leave the home. If
she doesn't, she is considered disobedient and will not be entitled to financial support.
2 Register at the Ministry of Industry and Trade and obtain a letter to open a 1 day see procedure details
bank account
Agency : Ministry of Industry and Trade
To register, the entrepreneur must submit the following documents to the Companies
Registry of the Ministry of Trade and Industry:
1. Duly completed application for company registration
2. The memorandum and articles of association (standard forms are often used)
3. Proof of 50% capital deposit from the Bank (submitted after opening the bank account
and depositing the capital)
4. Copy of the entrepreneur's ID card
Fees include:
(1) Registration fees of 0.002 (2/1000) of the capital of the company, or 250 JD,
whichever is greater;
(2) Stamp Fees of 0.003 (3/1000) of the capital of the company; and
(3) Fee for publication in the official gazette: JOD 15
(4) Fee for filing the first general assembly meeting and board of directors' meeting
minutes: JOD 40
(5) Fee for obtaining the standard form of the memorandum and articles of association:
JOD 10
(6) Fee for the Registration Certificate: JOD 10
(7) Filing fee: JOD 10
At the moment of submitting the documents for registration, an entrepreneur needs to
request a letter from the Ministry of Industry and Trade, in order to open a bank account.
The letter shall state the name of the company, the name of the shareholders (percentage
of their shares) and the capital amount.
3 Open a bank account and deposit 50% of the capital 1 day no charge
Agency : Bank
All new businesses must open a bank account and deposit at least 50 percent of their
startup capital. In order to open a bank account, the following documents are submitted:
1. National ID
2. Letter from the Companies Registry of the Ministry of Industry and Trade address to
the shareholders to open a bank account, deposit the capital and get a bank certificate to
that effect.
4 Obtain a tax identification number and Register for VAT 1 day (simultaneous no charge
Agency : Tax Office with previous
The entrepreneur must apply for tax registration (including corporate tax, income tax, and procedure)
VAT) by completing the application form and submitting it to the relevant Tax Office.
After registration, the company obtains a unique tax identification number (TIN).
Page 8Doing Business 2018 Jordan
5 Register at the Chamber of Industry or the Chamber of Commerce 1 day (simultaneous JOD 75 for
Agency : Chamber of Industry or Chamber of Commerce with previous registration at the
If the company conducts commercial activities, it must register with the Chamber of procedure) Chamber of
Commerce. If the company conducts industrial activities, it must register with the Commerce or JOD
Chamber of Industry. Representatives of both Chambers are available at the Companies
200 for registration at
Registry office (in separate windows). In order to register, the following documents are
the Chamber of
required for submission:
Industry
• Certificate of Registration from the Ministry of Trade and Industry
• Memorandum and articles of incorporation
• Original lease agreement of workplace premises
• Copy of the identity cards (ID) of the company's authorized signatories
Registration fees vary as a function of the startup capital. If the company conducts
industrial and commercial activities, it is required to register with both chambers.
To register at the Chamber of Commerce, fees vary between JOD 50 and JOD 1,500.
To register at the Chamber of Industry, fees vary between JOD 100 and JOD 1,500.
Fees can be paid directly at the window where the registration documents are submitted.
6 Obtain a vocational license from the Greater Municipality of Amman (GAM) 8 days JOD 200
Agency : Greater Municipality of Amman (GAM)
The entrepreneur must submit a complete application form along with the following
documents in order to obtain a vocational license from the municipality:
• A planning location map issued by the Greater Amman Municipality (GAM) - obtained
from landlord if property is leased
• Occupancy permit issued by GAM - obtained from the landlord if property is leased
• A copy of the property deed or lease agreement
Once the GAM officer verifies that the location is situated in the right zoning area and
that no property taxes or fees are due, a municipal officer sets a date for inspection of the
company premises. If the conducted inspection is deemed satisfactory, the entrepreneur
must submit the following documents to the competent vocational licenses division of the
municipality:
• The company’s certificate of registration
• A certificate of the company’s authorized signatories
• Memorandum and articles association
• Certificate of registration with either the Chamber of Commerce or the Chamber of
Industry
• The lease contract (stamped by GAM once received)
• The planning location map issued by GAM
• The occupation permit issued by the GAM
If the company premises is 150 square meters or more (or for certain businesses requiring
civil defense measures), GAM sends a letter to the Civil Defense Directorate. If the
company meets the requirements of the Civil Defense Directorate inspection but does not
undergo inspection by the Directorate within 4 days of the letter receipt, GAM grants the
applicant a conditional vocational license which may be revoked in the subsequent year if
the Civil Defense Department does not grant its approval.
7 Receive the Civil Defense inspection by the Greater Municipality of Amman 1 day (simultaneous no charge
(GAM) with previous
Agency : Greater Municipality of Amman (GAM) procedure)
In addition to the Civil Defense inspection, from certain businesses (e.g., the food
industry, gas stations), a representative of the Ministry of Health will conduct a health
inspection of the company premises.
Page 9Doing Business 2018 Jordan
8 Register for social security 1 day (simultaneous no charge
Agency : Social Security Office with previous
Every business must register for social security. In order to register for the Social procedure)
Security, the company must submit a complete application form along with the following
documents:
1. Vocational License
2. Registration Certificate
3. Power of Attorney authorizing a person to represent the company before the social
security, if needed.
The company must submit the social security contributions for its employees on a
monthly basis (total contributions are at 14.25% from the employer and 7.5% from the
employee).
Applies to women only.
Takes place simultaneously with previous procedure.
Page 10Doing Business 2018 Jordan
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 11Doing Business 2018 Jordan
Dealing with Construction Permits - Jordan
Standardized Company
Estimated value of warehouse JOD 144,018.60
City Covered Amman
Indicator Jordan Middle East & OECD high Overall Best
North Africa income Performer
Procedures (number) 15 16.2 12.5 7.00 (Denmark)
Time (days) 62 132.1 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 12.0 4.3 1.6 0.10 (5 Economies)
Building quality control index (0-15) 11.0 11.8 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Jordan and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
71.43: Egypt, Arab Rep. (Rank: 66)
67.26: Turkey (Rank: 96)
65.74: Jordan (Rank: 110)
59.84: Regional Average (Middle East & North Africa)
59.66: Lebanon (Rank: 142)
0.00: Syrian Arab Republic (Rank: 186)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
5
60
Cost (% of income per capita)
50 4
40
Time (days)
3
30
2
20
1
10
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 12Doing Business 2018 Jordan
Figure – Dealing with Construction Permits in Jordan and comparator economies – Measure of Quality
15 14.0
13.0
11.8
11.0
Index score 9.5
10
5
0
no practice
Jordan Egypt, Arab Rep. Lebanon Syrian Arab Republic Turkey Middle East & North Africa
Details – Dealing with Construction Permits in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Receive soil examination by licensed engineering office 4 days JOD 600
Agency : Licensed Engineering Office
A soil examination is required before construction work can begin.
2 Obtain approval of project design drawings by the Engineering Association 3 days JOD 6,342
Agency : Engineering Association
To obtain approval of project design drawings, BuildCo submits the blueprints to the
Engineering Association. The contract with the architect who performed the design
should be attached. The application and attachments are then referred to the appropriate
departments within the Engineering Association for review, and after maximum 7 days,
the blueprints are approved by the association, subject to the payment of a security
deposit for the appointment an engineer to supervise the execution of the project and to
settle the fees due the association when the area to be built exceeds 200 square meters.
The Engineering Association also calculates the sales tax due on the design contract (to
be collected by the Amman Greater Municipality). The cost consists of:
1. JOD 0.010 per square meter (as fees for reviewing the designs)
2. JOD 0.030 per square meter (as a contribution out of the design fees)
3. JOD 0.005 (5 fils) per square meter out of the supervision fees
A total of JOD 0.045 per square meter is paid.
3 Apply for building permit 1 day no charge
Agency : Greater Amman Municipality
All drawings must be submitted to the Greater Amman Municipality. Drawings should be
compatible with the regulations and instructions. Architecture designs, civil engineering
designs, and mechanical designs, including heating, conditioning, and water pipes, must
also be submitted. The plans are verified and sent to the local building committee to be
discussed. After the approval is issued, the plan is sent to the inspectors for examination.
The inspectors have the right to object.
4 Obtain project clearance on fire safety 2 days no charge
Agency : Civil Defense Directorate
The Civil Defense Directorate stamps the application as part of the procedure for
obtaining a building permit.
5 Receive inspection by the City Development Department of the Greater 1 day no charge
Amman Municipality
Agency : Greater Amman Municipality
6 Obtain building permit 14 days JOD 3,251
Agency : Greater Amman Municipality
A one-stop shop for building permits for certain categories of buildings has just become
operational at the Greater Amman Municipality (GAM). The one-stop shop in GAM
began handling building permit applications for projects in high-density, mixed-use areas;
intensive development corridors, and industrial zones in 2008. In 2009, the GAM one-
stop show also began accepting building permit application for simpler commercial
construction projects for commercial zones. As a result, builders in Amman now have
another option for obtaining building approvals. Builders can either apply through local
or district municipalities (where the one-stop shop system has yet to be implemented) or
through the GAM one-stop shop which affords them a more streamlined process.
Most recently, the Jordan Water Authority and Jordan Electricity Company have
committed to faster approval times for building plans. These new internal deadlines also
helped to shorten the overall time to obtain a building permit from the GAM one-stop
shop from 28 days on average to 14 days
Before a building permit is issued, a lump-sum refundable fee of JOD 1,000.00 must be
paid for the removal of any debris (JOD 990.00 will be refunded). The building permit is
valid for 2 years.
Page 13Doing Business 2018 Jordan
7 Hire an authorized engineering office for inspections of the construction 1 day JOD 4,747
site
Agency : Authorized independent engineer
An engineering office is in charge of supervising the project. The municipality does not
send inspectors to examine the construction. However, inspectors are sent to the site to
ensure that there are no violations of the building permit. There is no limit on the number
of visits, but they may not occur at all.
8 Apply for occupancy permit 1 day no charge
Agency : Greater Amman Municipality
After completing construction, BuildCo must submit an application to the municipality of
Amman (GAM) to obtain an occupancy permit. A representative of the municipality
conducts an inspection to verify surrounding areas and the parking situation. There is a
fine of JOD 30.00 for buildings with irregularities. Upon receiving the request for an
occupancy permit, GAM forwards a notification to the Civil Defense Directorate to
inspect and give their approval.
9 Receive inspection of completed works from Civil Defense Directorate 1 day no charge
Agency : Civil Defense Directorate
After the completion of construction, the owner, engineering office, or contractor, as
agreed, notifies the Civil Defense Directorate that the work has been completed, and
requests examination and granting of all the necessary approvals. The Civil Defense
Directorate inspects the premises and grants an approval, which is required for obtaining
an occupancy permit.
10 Receive final approval from Civil Defense Directorate 2 days no charge
Agency : Civil Defense Directorate
11 Receive inspection of completed works from Greater Amman Municipality 1 day no charge
Agency : Greater Amman Municipality
12 Obtain occupancy permit 14 days no charge
Agency : Greater Amman Municipality
13 Apply for water connection 1 day no charge
Agency : Water Authority of Jordan (WAJ)
An application form is submitted to Jordan Water Authority (WAJ). The following
documents are attached to the application:
• Registration certificate of the company and a certificate naming the persons authorized
to sign on behalf of the company
• Planning location map (issued by the GAM)
• Property deed
• Occupancy permit
The exact address of the premises is given to the WAJ, along with the number of a water
meter situated in the same street/area (or a copy of a water bill) in order to enable them to
identify the closest connection point. The WAJ conducts an inspection within 14 days and
then charges the fees and makes the connection.
14 Receive water and sewerage inspection 1 day no charge
Agency : Water Authority of Jordan (WAJ)
15 Obtain water and sewerage connection 15 days JOD 2,337
Agency : Water Authority of Jordan (WAJ)
The cost of water and sewerage connections depends on the contractor and does not
include the connections and pipes inside the warehouse. The cost includes a stamp duty
of JOD 10.00, a JOD 275.00 connection fee (for all buildings larger than 100 square
meters), and the price of the water meter.
Takes place simultaneously with previous procedure.
Page 14Doing Business 2018 Jordan
Details – Dealing with Construction Permits in Jordan – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by 1.0
(0-2) external engineer
or firm;
Inspections at
various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes,
external engineer
submits report for
final inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Professional in 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 15Doing Business 2018 Jordan
What are the qualification requirements for the professional who supervises the construction University degree 1.0
on the ground? (0-2) in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 16Doing Business 2018 Jordan
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 17Doing Business 2018 Jordan
Getting Electricity - Jordan
Standardized Company
Price of electricity (US cents per kWh) 24.6
Name of utility The Jordanian Electric Power Co., Ltd. (JEPCO)
City Covered Amman
Indicator Jordan Middle East & OECD high Overall Best
North Africa income Performer
Procedures (number) 5 4.8 4.7 2 (United Arab
Emirates)
Time (days) 55 81.4 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 384.1 780.3 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 7 4.2 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Jordan and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
83.33: Jordan (Rank: 40)
81.02: Turkey (Rank: 55)
71.24: Egypt, Arab Rep. (Rank: 89)
67.21: Regional Average (Middle East & North Africa)
60.07: Lebanon (Rank: 123)
51.99: Syrian Arab Republic (Rank: 153)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 18Doing Business 2018 Jordan
Figure – Getting Electricity in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
250
50
Cost (% of income per capita)
200
40
Time (days)
150
30
100
20
10 50
0 0
1 *2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Jordan and comparator economies – Measure of Quality
8
7
7
6
Index score
5
5
4.2
4
3
3
2
1
0 0
0
Jordan Egypt, Arab Rep. Lebanon Syrian Arab Republic Turkey Middle East & North Africa
Page 19Doing Business 2018 Jordan
Details – Getting Electricity in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to JEPCO and await estimate 14 calendar days JOD 0
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
The documents needed along with the application are: professional license from the
Ministry of Trade and Commerce, property map, organizational map, lands map, and a
description of the electrical loads.
2 Receive external inspection by JEPCO 1 calendar day JOD 0
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
An inspection by The Jordanian Electric Power Co. Ltd. (JEPCO) is necessary to
determine the details of the external connection.
3 Obtain excavation permit from municipality 7 calendar days JOD 50
Agency : Amman municipality
An excavation permit from the municipality is required for the external works. The client
can however, apply for an electricity connection first and then submit the permit to the
electricity company when they have obtained it.
4 Hire registered electrical contractor to carry out external works 20 calendar days JOD 5,310
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
Payment of the connection fees can be made through one of the utility’s collection offices
(17 offices and 21 sub collection offices), through post offices, or through any bank that
the utility has an agreement with.
In a case like this, the client hires an entrepreneur registered with the utility to do the
external works or design the substation (if one is needed).
External works start after the client has paid the estimate for the connection fees and
signed the contract.
There are two options for the works, and the choice between them is an economic one: 1.
Layout of cables to a central transformer: this consists of a connection to the existing
distribution transformer via underground cable, if the existing substation can still service
the additional capacity, and 2. Construction of a new substation.
5 Obtain meter installation and final connection from JEPCO 14 calendar days JOD 5,703.5
Agency : The Jordanian Electric Power Co., Ltd. (JEPCO)
The utility installs the meter few days after the end of the works.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2018 Jordan
Details – Getting Electricity in Jordan – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 2.2
System average interruption frequency index (SAIFI) 1.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online http://www.emrc.gov.j
o/index.php/en/electr
icity-tariff
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2018 Jordan
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 22Doing Business 2018 Jordan
Registering Property - Jordan
Standardized Company
Property value JOD 144,018.60
City Covered Amman
Indicator Jordan Middle East & OECD high Overall Best
North Africa income Performer
Procedures (number) 6 5.7 4.6 1.00 (4 Economies)
Time (days) 17 30.3 22.3 1.00 (3 Economies)
Cost (% of property value) 9.0 6.0 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 22.5 13.4 22.7 29.00 (Singapore)
Figure – Registering Property in Jordan and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
74.67: Turkey (Rank: 46)
66.40: Jordan (Rank: 72)
60.91: Regional Average (Middle East & North Africa)
59.93: Lebanon (Rank: 102)
55.50: Egypt, Arab Rep. (Rank: 119)
46.88: Syrian Arab Republic (Rank: 155)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Jordan – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
10
16
Cost (% of income per capita)
14
8
12
Time (days)
10 6
8
4
6
4
2
2
0 0
1 2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 23Doing Business 2018 Jordan
Figure – Registering Property in Jordan and comparator economies – Measure of Quality
30
25 22.5 21.5
Index score
20
16.0
15 13.4
10.5
10
7.0
5
0
Jordan Egypt, Arab Rep. Lebanon Syrian Arab Republic Turkey Middle East & North Africa
Details – Registering Property in Jordan – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a sale form, certificate of ownership and a cadastral map from the 8 - 12 days JOD 1.5 for property
Land and Survey Directorate deed JOD 3.5 for
Agency : Land and Survey Directorate land map JOD 10 for
Prior to proceeding with the sale, the buyer (being a corporate entity) must first obtain zoning map
certain approvals/non-objections from the relevant authorities. A standard form purchase
application should be completed by the person duly authorized by the buyer and
submitted to the Investment Department at the Department of Land and Survey. The land
is also already registered in Land Registry with an updated certificate of ownership and a
cadastral map. The clerk has only to make a copy of these documents and certify them as
official copies. After the issuance of the Sale Form, the director of the Land and Survey
Directorate sends a letter to the office of the finance minister asking that the Minister
approve the company’s request to buy land. The Procedure consists of: (i) filling in the
application at the Land and Survey Directorate , (ii) recording the sale application in a
record kept by the Land and Survey Directorate, (iii) filling in the sale form according to
the information provided by the parties concerned including ascertaining that there are no
obstacles that would obstruct the sale at a later stage of the Procedures, and (iv)
requesting from the Land and Survey Directorate to send a letter addressed to the
Minister of Finance soliciting his approval on the sale. The documents to be submitted
with the application are as follows: (i) a property deed, (ii) A Land Map, (iii) a Zoning
Map, (iv) a clearance from the Property Tax Department in the Greater Amman
Municipality , (v) a clearance from the Greater Amman Municipality on all planning
taxes due on property, (vi) a company registration certificate for both buying and selling
companies (vii) a certificate evidencing that the persons signing the sale/purchase are
authorized on behalf of the seller/buyer, and a copy of their ID cards. The Company’s
statute must clearly state that the company can own lands, even if owning lands is not the
company’s main objective and even if the company tends to own land to achieve other
stated objectives in its founding statutes. Many lawyers always include, when drafting the
company’s statutes, the right to own land. In case the company does not have this
objective clearly stated in its statutes, an extraordinary session of shareholders should be
invited to amend the company’s regime for this purpose. The new statutes had to be taken
to the Ministry of Trade and Industry to obtain the final clearance (simple administrative
Procedure), but according to recent practice, this is no longer required by the Land
Registry. In addition to the above it is necessary to have a certificate evidencing that the
person signing the sale/purchase is authorized on behalf of the seller/buyer, as well as a
copy of their ID cards.
2 Obtain from the Local Municipality a copy of the Zoning Map for the district 3 days JOD 10 (included in
and a Non-objection Letter on the official sale form previous)
Agency : Greater Amman Municipality
The parties should also ask the Greater Amman Municipality official to sign a statement
(free of cost) on the official form of sale previously obtained from the Land and Survey
Directorate, claiming that the property sold is not in contravention of any relevant law or
regulation. In case the property was in contravention, a fine must be paid and the
contravention removed. The documentation shall include: • The company’s statute • The
Ministry of Trade and Industry Authorization (obtained in Procedure 1) • Certificate of
Property (obtained in Procedure 2) • Official Sale Form (obtained in Procedure 2) •
Cadastral Map (obtained in Procedure 2)
3 Obtain building tax clearance from the relevant Municipality 1 day no cost
Agency : Greater Amman Municipality
The parties should take all the documents stated above to the Municipality and request
the ministry to sign the statement on the form, assuring that the property does not have
any unpaid building taxes. In case the building has unpaid taxes, they should be paid or
else the sale cannot continue.
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