Company Incorporation and Registration in Israel through Enterslice

Israel has long been admitted and appreciated for its vibrant start-up culture, fostered through government investment and pro-business policies. Establishing a business in Israel is a relatively straightforward matter. All companies in Israel must register with The Registrar of Companies (Ministry of Justice) and the Tax Authorities (Ministry of Finance).

Starting a business in Israel:

The applicant can invest in Israel in the form of following entities as explained below:

1. Company: As per, the Israeli Companies Ordinance (ICO) a company as a corporation formed and registered in Israel, in accordance with the Israeli law. It must be registered with the Registrar of Companies. Hebrew and Arabic are the official languages of Israel though, in practice corporate documents will generally be accepted in English by the Registrar.

In two forms company can be registered in Israel:

a. Private Company: For setting up of this type of business, minimum one director and 1-50 shareholders are generally required. These companies didn’t offer or sell debentures or shares to the public.

b. Public Company: For setting up of this type of business, minimum of 7 shareholders is necessary. After issuing a prospectus in accordance with the requirements of the ICO and the Securities Law, the company may offer stock or debentures to the public

2. Foreign Company: A company set up in Overseas may establish a branch or local office in Israel within a month of its establishment as long as it is registered as a foreign company with the Registrar of Companies. If the company uses the term "limited" as part of its name, then it must display its name and the name of the country in which it is incorporated in every invoice, letter, announcement, advertisement or other official publication.

3. Partnership: As per Partnership ordinance, a partnership is an entity that consists of persons, who contracted to form a partnership. Personal liability of the partners is not limited unless they are limited partners of limited partnerships.

4. Cooperative: This type of business entity, is mainly found in agriculture, (cooperatives such as a kibbutz, or moshav), transportation and in certain types of marketing operations associated with agricultural products.

5. Non Profit Organizations: This type of business entity mainly focused on nonprofit activities. They are covered under the framework of a special law dealing mainly with the formation of such organizations.

Company Incorporation in Israel

Procedure for the Company Registration in Israel:

• In the first step, the applicant has to submit the application for company registration in Form No.1 to the registrar;
• Next Step is to draft Memorandum Of Association and Article of Association of the company;
• Payment of the fees of registration of Company which is currently 2244 NIS;
• Once, the above formalities are compiled and registrar is satisfied, then Registrar will issue 9 digit number certificate of incorporation;

Taxation In Israel, 

once the company has been registered with the registrar, it’s a duty of the company to get itself registered in tax authority. It can be made at the Tax Authority upon commencement of operations/business/trade. Generally, the Israeli tax year is the calendar year. Subsidiaries of foreign public companies may sometimes use a different fiscal year.

Taxes which are required to be filed in Israel are as follows:

1. Company tax installments- a percentage of the company's monthly sales revenue;
2. Value-added tax (VAT);
3. Tax withheld from salaries and remittances to suppliers when applicable;
4. National Insurance;
5. Supplementary company tax installments with respect to certain non-deductible expenses;

Detail Information is provided on our website www.enterslice.com