Legal counseling in opening a new company in Israel
We help people open companies in Israel and, once the firm has been established, we can provide legal counseling for all its corporate operations.
All companies created in Israel must be registered with the Registry of Companies. Foreign residents or companies can do business in Israel through the opening of a branch or a subsidiary. Either procedure requires registration as a legal entity with the Registry of Companies. We describe below the stages of this process.
Starting a business in Israel
Advice of our experienced lawyer will allow you to choose the right type of company, quickly and correctly register your business. Main legal entities are:
- Non-profit organization (Amut);
- Individual entrepreneur (patukh)
- LLC (hev baam);
- Partnership company (shutfoot).
Company Registration. Filing an application to open a company in Israel
To open a company in Israel, you must file an application with the Registry of Companies. Your application must be accompanied by the following documents:
- The body of regulations that will govern your company
- Declarations from the first directors
- Declaration from the company’s founder
All of the documents submitted to the Registry must be signed by the founder and the first directors. A lawyer must then certify those signatures with his/her own signature and official stamp.
A new company must pay a registration fee to the state. Currently, the registration fee is 2,645 New Israel Shekels (NIS), which is roughly equivalent to 700 U.S. dollars.
The company’s body of regulations
A company’s body of regulations must include the following:
- The name of the company
- The goals of the company’s operations (these goals must be congruent with the laws of the State of Israel)
- The amount of the company’s regulatory capital
- The limits of the shareholders’ responsibility
- Any other information requested by the shareholders, such as, for example, the company’s management and the rights and obligations of shareholders
The company’s regulations can be in English.
The name of the company
The company’s founders can use their own discretion in choosing a name for the company. There are certain restrictions regarding a company’s name. A company cannot be created in the following cases:
- If the name chosen as that of another registered company;
- If the name chosen is a registered trademark;
- If the name chosen undermines established public norms or offends the interests of the public.
It is advisable to prepare in advance three variations of the proposed name in Hebrew and, optionally, in English. By doing so, one can avoid the need for resubmitting an application for the opening of a new company because of the choice of an inappropriate name.
The company’s location
The company must have a physical address under which it will be registered. A company cannot be registered if its only address is a post office box.
The company’s founders
A company can be founded by one or more persons or by one or more legal entities.
If the founders are citizens of another country, they must present their foreign passports.
If the founders are legal entities, the following documents must be presented:
- Copies of the founding documents;
- A recent printout from the Registry of Legal Entities or proof of registration as a legal entity:
All documents must be accompanied by an apostille from the country where the founder’s company was created. These documents must be translated into Hebrew and with a notarized translation.
Power of attorney to a lawyer in Israel
The founders of the company must sign a power of attorney, granting a lawyer in Israel the right to register the company and represent it before government institutions.Contact Israeli Attorney in corporate law
Company registration in 4 days
The time period for the opening of a company in Israel is four business days, provided that all the documents have been presented as required and provided that all of the above conditions and restrictions have been met. Please note that the LLC opening (Hevra baam) may take longer, besides, you can do it only through the Attorney at Law
Actions that must be taken after the registration of a company
After a company has been registered with the Registry of Companies, a corporate bank account must be opened, and the company must be registered with the tax authorities (such as VAT and the income tax authority) and with the National Insurance Institute.
The experienced lawyer will implement full support and defend from: unreasonable inspections, unsuccessful transactions, incorrectly executed documents, disputes with tax and other government services.
Constant collaboration with Attorney at Law is more profitable than a full-time lawyer and will deal with a wide range of issues:
- Representation in court (commercial litigation)
- Dispute resolutions (mediation)
- all types of corporate legal support, including transactions and contracts
Benefits for repartiants (olim hadashim) and toshav Hozer
Special tax breaks for Olim Hadashim those who want to set up their own business in Israel (income tax breaks, avoidance of double taxation, exemptions for working mom of children under 6 years and many other benefits and others.)
Contact us if you are looking for a lawyer whom you could trust. We will be happy to detailed our services for your needs. Fill out the contact form or calling us at +97252-639-2289 (for calls from Israel), +7925-171-0755 (for calls from Russia).
Anastasia Fux, Attorney at Law