Israel company registration

Israel company registration

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.

SummaryLLCFast business setup solution Limited liability partnershipPLCBranch officeRepresentative office
Best use of companyAll products and servicesClose customer deal nowProfessional servicesTo secure public fundingImport/exportMarketing and research
How soon can you invoice Clients/sign sales contracts?3 months3 weeks3 months3 months3 monthsNo
How soon can you hire staff?3 months3 weeks3 months3 months3 months2 months
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week1 week
How long to supply company registration?3 months3 weeks3 months3 months3 months2 months
How long to supply corporate bank account numbers?4 months3 weeks4 months4 months4 months3 months
How long to supply tax numbers?5 months3 weeks5 months5 months5 monthsNo
Corporate tax rate on annual net profits?24%24%0%24%24%0%
Limited liability entity?YesYesYesYesNoNo
Government grants available?YesYesYesYesYesNo
Resident director/partner/manager required?NoNoNoYesYesYes
Can bid for for government contracts?YesYesYesYesYesNo
Corporate bank account location?Union BankLeumi BankBank HapoalimIsrael Discount BankFirst International Bank of IsraelMizrahi-Tefahot Bank Ltd
Can secure trade finance?YesYesYesYesYesNo
VAT payable on sales to local customers?17%17%17%17%17%No sales allowed
Average total engagement costs?US$13,500US$30,200US$14,270US$14,270US$14,100US$13,500
Average total engagement period?5 months6 months5 months5 months5 months3 months

See full table

Accounting and tax considerationsLLCFast business setup solution Limited liability partnershipPLCBranch officeRepresentative office
Statutory corporate tax payable?24%24%0%24%24%0%
Legally tax exempt if properly structured?NoNoYesNoNoYes
Group HQ tax incentives?YesYesNoYesYesNo
Must file an annual tax return?YesYesYesYesYesNo
Must file annual financial statements?YesYesNoYesYesYes
Must appoint an auditor?YesYesNoYesYesNo
Access to double taxation treaties?YesYesYesYesYesNo
Withholding tax on payments to shareholders?30%30%30%30%30%0%
Company RegistrationLLCFast business setup solution Limited liability partnershipPLCBranch officeRepresentative office
Minimum number of directors/managers?112211
Minimum number of shareholders/partners?1127Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%
Shelf companies available?YesNoNoYesNoNo
Time to incorporate a new entity?3 months3 weeks3 months3 months3 months2 months
Can easily convert to a PLC?YesYesNoYesNoNo
Public register of shareholders and directors?YesYesYesYesYesYes
Can have preference shareholders?YesYesNoYesNoNo
Business ConsiderationsLLCFast business setup solution Limited liability partnershipPLCBranch officeRepresentative office
Good entity for trademark registration?YesYesYesYesNoNo
Can secure an import and export license?YesYesYesYesYesNo

Resident tax representative required?Yes
Nominee tax representatives often require indemnity insurance?Yes
Minimum paid up share capital?None
Sponsorship by a local citizen required?No
Our Client needs to travel to Israel for business set up?No
Government approval required for foreign owners?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?Israeli Corporations Authority
Monthly VAT reporting to the government?Yes
Must sign an office lease agreement during incorporation?Yes
Shareholders and directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?None
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average customs duties suffered?3%
Government foreign investment approval required?No
Average monthly office rental? (US$ per sq m)US$29
Minimum statutory monthly salary?US$1,365
Average monthly US$ salary for local skilled employees?US$2,618
US$ deposit interest rate? (1-year average)0.45%
Overseas remittance currency controls?No
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Israel company registration

      doing business in Israel

    1. 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;
    2. 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

    1. 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;
    2. To undertake business activities in Israel, an entrepreneur needs a Business Visa. Healy Consultants can effectively help you through the process of obtaining this;
    3. 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

    1. 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.

Tell us what you need - we’ll send you a customised proposal in 5 hours!

Company registration

  • Time to incorporate: Eight weeks
  • Cost to set up: US$13,500
  • Minimum capital: US$1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 27%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: LLC

Frequently asked questions

Contact us

For additional information on our company registration services in Israel, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Grace Odhiambo, directly:
Federation of Israeli Chamber of Commerce Bank of israel israel business connection israel Ministry of Finance israel tourism israel Ministry of Economy and Industry