Starting a Business in Israel

This section identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm in Israel.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table below provides a summary of the procedures and the associated completion time and cost for setting up a standardized company. The table is followed by additional country-specific information on business registration requirements.

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Standardized company

Legal Form: Private limited company
City: Tel Aviv

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain company registration documents certified by an attorney 3 days NIS 1,651+ 15.5% VAT (recommended minimum fee by the Israel Bar)
2 File with the registrar of companies, Ministry of Justice 1 day NIS 2,354 + NIS 2 for each page in the Articles of Association
3 Register for taxes at Ministry of Finance, Income Tax Department 15 days no charge
4 Register for VAT at Ministry of Finance, Customs and VAT Department 1 day no charge
5 Register with the National Insurance Institute 14 days no charge

Registration Requirements Details

Procedure 1.
Obtain company registration documents certified by an attorney
Time to complete:
3 days
Cost to complete:
NIS 1,651+ 15.5% VAT (recommended minimum fee by the Israel Bar)
Name of Agency:
Comment:
The following company certification documents must be certified by an attorney:
- Application to register the company.
- Affidavit on the first minutes of meeting of directors’ competence to serve.
- Initial shareholders’ signatures on articles of association.
- Initial shareholders’ affidavits on the lack of legal restrictions on the company.
Procedure 2.
File with the registrar of companies, Ministry of Justice
Time to complete:
1 day
Cost to complete:
NIS 2,354 + NIS 2 for each page in the Articles of Association
Name of Agency:
Comment:
To register a company, the promoter must file the articles of association, and directors must sign a declaration stating that they have the capacity to serve, and their signatures must be authenticated by an attorney.
Procedure 3.
Register for taxes at Ministry of Finance, Income Tax Department
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Comment:
To register for company taxation, the promoter must file the company deed and identity certificate of registration. Final registration confirmation takes up to 28 days.
Procedure 4.
Register for VAT at Ministry of Finance, Customs and VAT Department
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Although distinct from the regional income tax office, the regional VAT office also operates under Ministry of Finance. To register for VAT, the promoter must file the certificate of incorporation, identity documents for all directors, a lease agreement, and other information. The VAT authority generally asks for a bank account for VAT refund purposes (or for VAT payment). It takes a few minutes to open a bank account, assuming that the company provided all required documents, including a company resolution to open the account and the rights of signature. There are no fees to open the account, but bank commissions may vary according to the bank and bank account features.
Procedure 5.
Register with the National Insurance Institute
Time to complete:
14 days
Cost to complete:
no charge
Name of Agency:
Comment:
The National Insurance Institute program covers all gainfully employed individuals, with provisions including social security, unemployment insurance, severance pay, training funds, health insurance, and pensions.