Companies law amendments, e-services contribute to better business, investment environment

AMMAN — The number of companies registered with the Companies Control Department (CCD) has reached 1,752 companies since the beginning of the year, with a capital of JD61 million.

In 2018, a total of 5,467 companies, with a combined capital of JD150 million registered with the department, compared with 6,804 companies in 2017, with a total capital of JD350 million, according to the CCD.

Department Director Ramzi Nuzha said in a statement carried by the Jordan News Agency, Petra, that amendments to CCD regulations and digitisation works have helped enhance the department’s operations.

They have also helped reinforce and strengthen the values of integrity and transparency within the CCD and in the eyes of stakeholders, Nuzha underlined.

He added that the positive impact of these amendments has materialised, especially when it came to laws pertaining to the creation of “venture capitalist companies” and the way in which these companies operate and the inception requirements.

New laws pertaining to the election of the board members of venture capitalist companies were also amended, introducing the accumulative vote to the sector, Nuzha pointed out.

Under the new regulation, board chairpeople are no longer allowed to be company CEOs, he highlighted.

Nuzha said that the registration requirements, including the number of needed permits for company registration will be reduced with the new digital registration services.

Nuzha stated that some CCD services have been digitised and simplified, adding that the department has increased its efforts to raise awareness about its new electronic channels.

He pointed out that electronic services will increase user satisfaction and the accuracy of information, as well as enhance cooperation and information exchange with other governmental departments.

Through the new services, users will be able to submit their requests electronically and receive text messages once these requests are complete, Nuzha stated.

The CCD also recognises digital signatures in the issuance of certificates now, with the new services launched, the director added, reaffirming on its importance as a step in the right direction.

Digitisation will enhance integrity and transparency, in addition to saving time and money for the CCD and stakeholders, Nuzha said.

On the new bankruptcy law, Nuzha underlined that it enables new methods for tackling the issues of corporate insolvency and allows for companies to restructure their operations instead of going under, once and for all.

He also called upon inactive and suspended companies to dissolve their businesses and verify their closure to avoid fines and possible legal ramifications.

During the first four months of 2019, 696 companies were voluntarily dissolved, compared with 1,652 and 1,247 companies in 2018 and 2017 respectively, he underlined.

According to the director, 80 per cent of the voluntarily dissolved companies were partnership businesses whose owners decided to mitigate taxes payable and dues under the law by shutting down and dissolving their enterprises.

In the first third of this year, three companies were forcefully dissolved, whereas 14 companies were forcefully dissolved in 2018 and four in 2017, Petra reported.