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Establishing a Company in Israel

Israel is one of the world’s most progressive and technologically advanced nations. Over the past 20 years, high levels of entrepreneurship, especially in the technology and health sectors, have gained Israel the pseudonym “Startup Nation”. Founded in 1948, modern day Israel is a democratic, sovereign and independent country, sharing borders with Lebanon, Syria, Jordan and Egypt. In addition to the high-tech sector, Israel boasts many other highly advanced business sectors, such as fintech, pharmaceuticals, green energy, water desalination, agriculture and security. This provides corporations and entrepreneurs, thinking of forming companies in Israel, with a doorway to a multitude of business opportunities, both locally and globally. It also offers advantages for conducting business in highly attractive, select international markets such as: technology, health and medicine, security and agriculture; in which the label "Made in Israel" engenders a sense of exclusivity, sophistication and quality.

For Viewing Israel in Google Maps - Click Here

Three Things You Probably Didn’t Know About Israel

  • The state of Israel and a number of philanthropic organizations offer all Jewish persons aged 18 – 26 living in the Diaspora a complimentary 10-day trip to Israel at no cost to them. The goal of the
  • project, known as "Birthright" or "Taglit", is to tighten the bonds between the Jewish Diaspora and Israel and to encourage "Aliyah" (immigration of Jews to Israel).
  • Israel is the only country in the world leading a mandatory military service for women.
  • Jerusalem, the capital of Israel, is known for its unsurpassed wealth of history, spirituality and political activity. The city represents 7,000 years of habitation, siege, conquest and liberation and is considered one of the most active ancient cities on the planet.

The Israeli Economy

Israel has established and maintains a free market economy that benefits from leading-edge technologies. Israel is small geographically and has scarce natural resources. With that, Israel, a standing member of the OECD, is considered the most developed and progressive nation in Southwest Asia and the Middle East, from both economic and technological perspectives. Similarly, Israel stands out for the high-quality of its academic population. Entrepreneurs wishing to establish companies in Israel benefit from the advanced technology and banking infrastructure, proximity to active and ever progressing high-tech centers and access to a well educated, top quality workforce.

Israel's GDP is some $350 billion (PPP) and its GDP per capita is $37,800, ranked 23rd in the world. As of 2019, the Israeli economy is largely based on its inherent human capital and its high-tech industries in the fields of technology, medicine, security and agriculture. Commercial data shows that Israel is the world's largest center of trade in polished diamonds and that it holds the position of fourth largest exporter of weapon systems, in terms of scope of export. Historically, Israel’s economy was modeled according to a social-democratic paradigm, however, over the years, it has gradually shifted towards a capitalistic model centered around bolstering the business sector and shrinking the public sector.

Mellius offers its clients the option to register and establish companies in Israel, as best fits the needs of their business activities.

Additional Information Regarding Establishing Companies in Israel:

 

General
Type of company
Limited Company (Ltd.)
Relevant Companies Law
Companies Law, 1999  
Offices
Law requires companies to provide a local office address
Language of original incorporation documents
Hebrew
Finance and Taxation
Currency
New Shekel (NIS)
Corporate tax rate
23% - for all companies 6%-16% - for technology companies (in agreement with the tax authority)
Standard share capital
No minimum share capital requirement
Office Holders
Secretary
Obligation to appoint company secretary
Not required
Obligation to appoint local secretary
Not required
Type of entity that may function as company secretary
Irrelevant
Director
Obligation to appoint company director
Required
Obligation to appoint local company director
Not required
Minimum number of directors
1
Type of entity that may serve as company director
Individual and/or company
Shareholders
Obligation to register shareholders
Required
Obligation to register local shareholders
Not required
Minimum number of shareholders
1
Type of entity that may register as shareholder
Individual and/or company
Type of shares
Registered shares
Accessibility of Information
Company registrar
Information regarding shareholders is publicly accessible
Annual Assembly and Reporting
Obligation to hold annual assembly
Required
Obligation to prepare financial reports
Required
Obligation to submit financial reports
Required