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Foreign Company Registration in Israel for UAE and Other Persian Gulf Businesses


Michael Decker

The 2020 peace agreement and normalization of relations between Israel and the UAE, Bahrain, and other Persian Gulf countries creates new opportunities for business collaboration. Companies and businessmen from those countries who wish to operate in Israel must first take care of their legal status. In this article we will explain the process of forming and registering a foreign company in Israel for UAE and other Persian Gulf investors and businessmen.

The law offices of Cohen, Decker, Pex & Brosh, specialize in corporate and commercial law. The offices provide comprehensive legal assistance to Israeli and international clients; including registration and establishment of companies, legal advice, etc.

The Peace Agreement with UAE and Bahrain Opens Up New Business Opportunities

There are many reasons to be happy about the peace agreement between Israel, UAE and Bahrain, and the normalization of relations with other Persian Gulf countries. Not only because the agreement improves relations across the Middle East, after a prolonged political disconnection, but also because it creates many new opportunities for business collaborations.

Israeli companies will now begin to operate in places like Dubai, Abu Dhabi and Manama. Similarly, companies and investors from those places are expected to begin with business activity in Israel. In hard times of a world economic crisis, caused by the influences of Covid-19, these are some wonderful news for both sides.

In What Fields Can We Expect Business Collaborations Between the Countries?

Foreign company registration in Israel for UAE & Persian Gulf businessesDue to the diversity of fields under which entrepreneurs and companies from those countries operate, many collaborations are possible. We will definitely see cooperation in the energy field, mostly in the oil and natural gas industry. Companies and businessmen from the Persian Gulf countries have a comparative advantage in those fields, while in Israel there is high demand for developing the local industry.

We can also expect to see collaborations in the technology fields, in light of Israel being a high tech and start up nation. And one should not forget the tourism field. Many Israelis are desperately waiting to travel to places like Dubai and Abu Dhabi. Leading air companies such as Emirates and Etihad Airways expanding into the market is expected to change the Israeli tourism field dramatically.

What Should Businesses and Investors from the Persian Gulf Do in Order to Operate in Israel?

The primary priority before starting operations is to handle the legal status of the foreign company. They cannot operate in Israel without being registered locally. The best way to do so is to establish a company (subsidiary) or to register a foreign company in Israel. However, for non-profit activity, it might be better to be registered as an Amuta. Apart from operating with foreign corporations, it is also possible for experts from the Persian Gulf countries to work under Israeli corporations, given that they obtain an expert foreign worker visa.

How to Register a UAE/Persian Gulf Foreign Company in Israel?

There are three main ways for businessmen and investors from those countries wishing to operate in Israel as a company. The first way is to register a subsidiary comפany. The Israeli law allows that the foreign company would be registered as the sole stakeholder of its subsidiary. It is also required to appoint at least one director, who can theoretically be a representative of the foreign company. However, in order to register in the Israeli tax authority, the director must be an Israeli resident.

The second way is to form an Israeli branch, which will be the representative of the foreign company in Israel. The foreign company will be liable for the actions and omissions of the Israeli branch, which is important to take into account. The third way is to establish an agency in Israel. This track won’t enable the foreign company to have business activity in Israel, but rather to only conduct the initial activity of market research, when considering entrance into the Israeli market in the future.

You can read more about the aforementioned ways to operate as a foreign company in Israel in this article. It is important to seek legal advice in order to choose the right track for your business. Additionally, it is important to ensure that the company’s name and brands will not be taken. The best way to do so is to register a trademark in Israel.

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In this article we reviewed the different ways to register a foreign company in Israel for UAE and other Persian Gulf countries investors and businessmen. For further questions and inquiries, you can contact an attorney from the law offices of Cohen, Decker, Pex & Brosh. We specialize in corporate and commercial law, and provide comprehensive legal services for firms and businesses from Israel and the world, accompanying their operations in Israel.

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