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Establish an Israeli Company – Registration Process and Information

Joshua Pex
Joshua Pex

Are you interested in knowing how you can establish an Israeli company? Advocate Joshua Pex will share information about registration of a company in Israel. Attorney Joshua Pex is a partner at our law firm, with branches located in Jerusalem and Tel Aviv. We represent local and international clients seeking to establish new companies in Israel and will be glad to assist you in registering a company in Israel.

Establish an Israeli company

Who Is the Authority in Israel Responsible for the Process?

The Israeli corporations’ authority within the Ministry of Justice is the state agency in Israel that is certified to establish a company in Israel. If you wish to establish a private limited liability company or a nonprofit company, an Israeli partnership, or register a foreign company in Israel, you will need the approval of the Israeli registrar of corporations. Each legal entity has different requirements for registration; therefore, it is important to receive professional legal consultation before establishing a legal entity in Israel.

Who Is Allowed to Register a Company in Israel?

In Israel it is enough to have one shareholder in order to establish an Israeli company. This single owner may be a local Israeli or a foreign citizen. The shareholder of an Israeli company may be an individual or another corporation. It is important to note that there is no difference between the registration process for a local Israeli and an international shareholder. The only additional requirement is that the foreign citizen is asked to attach a copy of their passport to the company registration application. If the shareholder is an international corporation, they will need to present the certificate of registration, authenticated and translated. The owner of the company will need to come to Israel and sign the documents in front of an Israeli lawyer. The shareholders must sign an affidavit declaring that there is no legal limitation for them to establish the company in Israel.

Is it Possible to Register a Company in Israel without Coming to Israel?

Some clients ask us if they can establish an Israeli company without the need to physically come to Israel. This is possible, however, the documents which need to be signed in front of an Israeli lawyer will need to be signed in front of a consular official at the Israeli Embassy abroad or verified by an apostille. This process may require translation of documents to the relevant language and will be more complicated than registration of a company while in Israel. If possible, we recommend coming to Israel for the registration process.

What Do You Need in Order to Establish an Israeli Company?

The client who wants to establish a company in Israel must think of an original name. The name of the Israeli company may be written on the certificate of registration in Hebrew and English. On the company registration application, it is required to give three alternative names. Other than the name, a person wanting to register a company in Israel will need an Israeli ID or passport, home address, phone number, and some address for the company in Israel. We can give the address of our law office for the use of the company address, if necessary. Also, the shareholders and directors of the Israeli company will need to sign documents and have their signature verified by an Israeli lawyer.

How Much Does It Cost to Register a Company in Israel?

In order to establish an Israeli company, it is required to pay a registration fee to the Israeli government Department of Corporations at the Ministry of Justice. As of 2021, the fee for the registrar of companies is 2,645 NIS (around 650 USD).

Payment of the fee to establish a company in Israel may be done via credit card online:

General Information about Companies in Israel

The tax in Israel for companies is 25% on the profit of the company. If there is no gain, you won’t be required to pay tax. However, each year after establishing the Israeli company, the state requires payment of an annual fee which is around 1,500 NIS as of 2016. Also, it is necessary to file yearly business activity reports as a company. This financial account concerns the work the company has been doing, expenses, income, etc. These documents are prepared and filed with the help of a local Israeli CPA.

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If you want to register a company in Israel, establish an Israeli company, or have any questions regarding Israeli law, please call us.

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