Israel

Starting a Business in

Israel

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Israel. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information 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 185 economies. The most recent round of data collection was completed in June 2012.

Compare Israel to 184 other economies.

YearNew business densityNumber of new limited liability companies
2008 4.4619,758

  • Standardized Company

  • Legal Form: Private limited company
  • Paid in Minimum Capital Requirement: None
  • City: Tel Aviv

More Information

Learn more about this economy

Read the methodology for this topic

View the rankings

No. Procedure Time to Complete Associated Costs
1 Obtain company registration documents certified by an attorney

The following company certification documents must be certified byan attorney:

• Application to register the company.
• Declaration by the initial director(s) of competence to serve.
• Initial shareholders’signatures on articles of association.
3 days NIS 1,798 + VAT (recommended minimum fee by the Israel Bar)
2 File with the registrar of companies, Ministry of Justice

To register a company, the promoter must file the articles of association, directors must sign a declaration stating that they have the capacity to serve and their signatures must be authenticated by an attorney and initial shareholders must also sign a declaration stating that they have the capacity to hold shares in a company and their signatures must be authenticated by an attorney.
2 days NIS 2,554 + NIS 4 for each page in the Articles of Association
3 Register for taxes at Ministry of Finance, Income Tax Department

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.
15 days no charge
* 4 Register for VAT at Ministry of Finance, Customs and VAT Department

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.
1 day, simultaneous with procedure 3 no charge
* 5 Register with the National Insurance Institute

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.
14 days, simultaneous with procedure 3 no charge
* Takes place simultaneously with another procedure.
Explore Economy Data

Explore Economy Data


 - OR -

OTHER OPTIONS