DOING BUSINESS IN ISRAEL
Since 2003, Healy Consultants has assisted our Clients with business registration in Israel. Our services include i) Israel company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
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Advantages and disadvantages
Advantages of Israel company registration
- An Israeli private LLC can be registered by 1 director and 1 shareholder, who need not be Israeli nationals or residents. Furthermore, there is no obligation for our Clients to visit Israel in order to complete the registration process. Also, there is no statutory share capital requirement, due to which our Clients can setup their companies with US$1;
- Israeli companies will enjoy several benefits including
- Companies investing in approved R&D projects may receive funding from the Office of Chief Scientist (OCS) covering between 20% and 50% of the program’s budget. Furthermore, such companies operating in priority areas will be eligible for an additional 10% grant from the OCS;
- Industrial companies incorporated in Israel will enjoy reduced tax rates of either 10% or 15% if i) the companies export 25% of their produce abroad or ii) invest in the field of biotechnology or nanotechnology. As a result of these incentives, Israel was 3rd best in the world in the metric “Innovation” in the 2016 Global Competitiveness Report ;
- Multinational companies investing at least US$2.5 million and hiring at least 250 people in the country may be eligible for reduced corporate tax rates, ranging between 5% and 8%;
- Dividends distributed by an Israeli company to another Israeli company will be completely corporate tax exempt if the source of the income is also in the country;
- Goods imported in the Eilat free trade zone will be exempt from VAT and other duties if the goods are used or sold within the free zone;
- The World Bank ranked Israel as the 8th best jurisdiction in the world with regards to the metric “protecting minority investors”. As a result, foreign investors will feel secure when investing in the country;
- There are no exchange controls in Israel. As a result, our Clients will be able to easily repatriate the profits to their home countries;
- Israel has signed tax treaties with over 50 countries including China, India, Singapore, UK and USA to reduce withholding taxes on payments abroad.
Disadvantages of Israel company registration
- All companies doing business in Israel are required to file audited annual tax returns and financial statements within five months after their fiscal year. Healy Consultants will assist our Clients efficiently and effectively to complete this annual statutory obligation;
- To undertake business activities in Israel, an entrepreneur needs a Business Visa. Healy Consultants can effectively help you through the process of obtaining this;
- Israel is ranked as the world’s 37th least corrupt country, according to the 2014 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
Best uses for an Israeli company
High technology R&D and manufacturing
- Tel Aviv is the most advanced tech startup hub outside of the United States, according to the 2015 Global Startup Ecosystem Ranking by Compass. This engineering talent, coupled with universal national service and high military funding, also means that the country the talent, experience and infrastructure for defence companies to create and build their products.
- Time to incorporate: Eight weeks
- Cost to set up: US$13,500
- Minimum capital: US$1
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 27%
- Corporate tax base: Worldwide
- Shelf companies: No
- Main company type: LLC
Frequently asked questions
How long will it take to register a subsidiary of my company in Israel?It would take approximately 12 weeks to register a new company and open a corporate bank account.
Will I need to travel to Israel for the incorporation process?No. To open the company, you will only be required to sign and courier some documents.
What is Healy Consultants' professional fee for Israel company setup service?To set up an Israeli LLC, our fees will be US$13,500, including corporate bank account opening. Please refer to the attached invoice for a breakdown of the fees.