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2007 Assessment

Jordan: Integrity Indicators Scorecard

Jordan: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators   Score
67 Are business licenses available to all citizens? 88
68 Are there transparent business regulatory requirements for basic health, environmental, and safety standards? 100
69 Does government effectively enforce basic health, environmental, and safety standards on businesses? 75

Indicator and sub-Indicator Details

67 Are business licenses available to all citizens?
 
  67a: In law, anyone may apply for a business license.
 
Score: YES  NO score
  Comments:

References: Companies Law # 22 of 1997 and its amendments Article (4): Formation and Registration of the Company The formation and registration of companies in the Kingdom shall be realized in accordance with this law. And every company formed and registered under this law shall be considered a Jordanian corporate entity, with its headquarters situated in the Kingdom. Article (5): Registration Arresters and Objection to Registration a) No company shall be registered with a name chosen for a fraudulent or an illegal objective. And no company shall be registered with the name of another company already registered in the Kingdom, or with a name so similar thereto that may lead to confusion or deception. The controller may reject the registration of a company with such name in any such cases. Article (6): Company Forms a) Subject to the provisions of Articles (7) and (8) of this law, companies registered under this law shall be divided into the following forms:* General Partnership Limited Partnership Limited Liability Company Limited Partnership in Shares Private Shareholding Company Public Shareholding Company b) It is not stipulated that a prior approval be received from any other entity to register any company, provided that no legislation in force requires otherwise. c) The department may declare, in pursuance to instructions issued by the minister, any evidence or information not related to the company accounts or financial statements. [ LINK ]

  67b: In law, a complaint mechanism exists if a business license request is denied.
 
Score: YES  NO score
  Comments:

References: Companies Law # 22 of 1997 and its amendments Article 11 b) The controller shall issue his decision approving the registration of the company within fifteen days from the date of the submission of the registration application. The controller may reject the said application if there is evidence in the company agreement or its memorandum of a violation of this Law, public order or the provisions of all legislations in force and if the partners do not take action to rectify the said violation within the period determined by the controller. The partners may submit an objection to the Minister against the rejection decision of the controller within 30 days from the date of notifying them of the said rejection. Should the minister decide to reject the objection, the objectors shall have the right to contest his decision before the High Court of Justice within 30days from the date of their notification of the decision. [ LINK ]

  67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.
 
Score: 100  75  50  25  0  score
  Comments: In practice, this process can take from 3 days up to 6 months, depending on which specific industry category the company falls under, and on various industry requirements and regulations.

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

Companies Law #22 of 1997 and its amendments Article 11 b) The controller shall issue his decision approving the registration of the company within fifteen days from the date of the submission of the registration application. The controller may reject the said application if there is evidence in the company agreement or its memorandum of a violation of this law, public order or the provisions of all legislations in force and if the partners do not take action to rectify the said violation within the period determined by the controller. The partners may submit an objection to the minister against the rejection decision of the controller within 30 days from the date of notifying them of the said rejection. [ LINK ]

  67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.
 
Score: 100  75  50  25  0  score
  Comments: Licenses cost between JD 50 and 300 for registration and/or annual renewal.

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

68 Are there transparent business regulatory requirements for basic health, environmental, and safety standards?
 
  68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.
 
Score: YES  NO score
  Comments:

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

  68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.
 
Score: YES  NO score
  Comments:

References: Interim Law No (1) of 2003 Environment Protection Law Article (7)(A) For the purposes of this law, the competent employee, nominated in writing by the minister as per the recommendation of the secretary general, shall be given the capacity of judicial police and shall be entitled to enter any industrial, commercial, handicraft, agricultural place or any establishment, institution or any other body, the impact of its activities may involve in any way the environment elements & components, to make sure of its conformity and the conformity of its works with the established environmental requirements.

(B)(1) The minister, pursuant to the recommendation of the secretary general, shall warn the firm, the institution or the business place in violation, shall set a period for the removal of the violation if the place in question fails to do so, its shall be referred to the court.

  68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.
 
Score: YES  NO score
  Comments:

References: Instructions issued by the Amman Municipality require certain public measures to be applied.

69 Does government effectively enforce basic health, environmental, and safety standards on businesses?
 
  69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.
 
Score: 100  75  50  25  0  score
  Comments:

References: Batir Wardam, a researcher and activist in environmental affairs, in Amman, Jordan

  69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.
 
Score: 100  75  50  25  0  score
  Comments:

References: Batir Wardam, a researcher and activist in environmental affairs, in Amman, Jordan

  69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.
 
Score: 100  75  50  25  0  score
  Comments:

References: Batir Wardam, a researcher and activist in environmental affairs, in Amman, Jordan

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