Business entities in Israel

Healy Consultants advice our Clients with choosing the optimal corporate structures in Israel. There are several ways of doing business in Israel, the most common is setting up of a limited liability company. Entrepreneurs also have an option of incorporating a public limited company. Alternatively, our corporate Clients may also choose to register a branch office. For more details, please refer to the information below.

The Israel limited liability company (private company)

The Israel limited liability company (LLC) company is the most common corporate vehicle used by entrepreneurs setting up an SME in Israel. Such business entity can be setup with i) US$1 as share capital and ii) 1 director and 1 shareholder, both can either be an individual or a legal entity. The director and shareholder can also be of any nationality and can reside in any country. A private company must file annual audited financial statements.

The Israel public limited company (public company)

• This Israel business setup is recommended for entrepreneurs intending to publicly list the company on the Tel Aviv Stock Exchange market. A public company requires at least 2 directors and 7 shareholders of any nationality to be incorporated. The director and shareholder can either be an individual or a body corporate and can be resident of any country;
• A public limited company requires a minimum paid-up share capital of US$1 to be incorporated. Additionally the entity must file and publish annual audited financial statements with the Companies Registrar.

The Israel branch office

The Israeli Companies Law allows foreign entities to set up branch offices in Israel. This entity can be 100% foreign owned. The branch is permitted to conduct business in Israel as a legal entity although its scope of operations is defined by the parent company. The branch must appoint at least one resident manager, of any nationality, to oversee to the company’s operations in Israel.

Comparison table between Israel business entities