Increase in company registrations signals economic recovery in Q1 2024 - Companies Control Department

AMMAN — The first quarter of 2024 saw an 8 per cent surge in the number of registered companies compared with the corresponding period in 2023, the Companies Control Department announced on Monday.

A total of 1,623 new companies were registered from January to March this year, marking a "significant" increase from the 1,501 registrations recorded in the corresponding period last year, according to the Jordan News Agency, Petra.

Further analysis reveals a 16 per cent increase in registered companies when compared with the pre-pandemic conditions of 2019, highlighting a positive trajectory in the recovery of the business sector.

The cumulative registered capital for the period surpassed JD64.5 million, with limited liability companies holding the majority share at 71.5 per cent, boasting a registered capital exceeding JD24.6 million.

In a promising trend, the number of companies facing deregistration plummeted by 61 per cent compared with 2019 figures, with only 613 companies experiencing cancellation as opposed to 1,587 in the year before.

The ratio of new registrations to cancellations for the first quarter of 2024 rose to 62 per cent, up from 58 per cent in 2023, and a "significant" turnaround from the negative 13 per cent observed in 2019.

Capitalisation trends also followed a positive trajectory, with the total capitalisation of companies surging to approximately JD184 million during the first quarter of 2024. This increase was driven by capital injections surpassing JD200 million, offset by minor reductions amounting to around JD16 million.

Wael Armouti, general controller of companies, attributed this upswing in the corporate sector to recent reforms introduced through the amended Companies Law, which took effect late last year.

These reforms, an integral part of the broader economic modernisation vision, streamlined various procedures including advertisements, general assembly meetings, capital deposits and registration processes, thereby fostering an environment conducive to business growth and development.