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.

  • 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.

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.

General Information


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


Company Secretary (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

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