FAQ
What steps do I need to take before registration of an Israeli company?
It is recommended to consult with tax planning professionals and clarify possible benefits of using an Israeli company in business, as well as understand the necessary efforts to maintain such company.
Can a non-resident be a shareholder of an Israeli company?
Yes, it can be any individual or legal entity, regardless of their residency.
What are the requirements to the minimum authorized capital of an Israeli company?
There are no requirements to the minimum size of the authorized capital. However, the recommended authorized capital is 30,000 Israeli shekels (about US$ 7,000).
Is there a tax on the authorized capital in Israel?
No, shareholders don't pay any extra duties on contribution of the authorized capital.
How to register a company?
To register a company one needs to file certain documents with the Companies Registrar and pay the state duty.
Must the company's director be a resident of Israel?
No, there is no requirement to the residency of the director.
Who can perform the registration procedure?
As a rule, a licensed Israeli lawyers represent interests of shareholders in registration of companies. A lawyer performs registration of the company under the power of attorney issued by shareholders in his/her name. Service of the lawyer cover preparation of necessary statutory documents and execution of registration within the Companies Registrar.
Who must sign the statutory documents?
A founder of the company can sign application for registration. The shareholders are signing Articles of Association and declaration of shareholders. Directors sign declaration of directors of the company. A lawyer must authenticate all signatures on the statutory documents.
How is the decision on registration of the company taken?
Representatives of the Companies Registrar examine the statutory documents and, if those are found to be in full compliance with the law, register the company.
What details are required in the Articles of Association?
Company name and objectives, share capital structure, determination of limited liability.
What are the optional parts of the Articles of Association?
The Articles of Association may include detailed description of rights and obligations of its shareholders, instructions on operation of the company, regulations regarding relationship between the company and its shareholders.
What is required to make amendments to the Articles of Association?
Minutes of the meeting of shareholders, documented by a resolution by the majority on making amendments.
What details are obligatory in periodical reporting to the Companies Registrar?
The company is obligated to submit an annual report to the Companies Registrar including the following information:
1. Amendments to the Articles of Association of the company
2. Change of legal address
3. Changes in the board of directors
4. Changes in the share capital structure
5. Mergers and acquisitions
What are the requirements to annual tax and financial reporting?
The company is obliged to submit annual and financial reporting to the tax authorities not later than in 5 months from the end of the fiscal year.
Is the reporting to be certified by an auditor?
Yes, an auditor must certify the company’s reporting.
Can an Israeli company have more than one banking accounts?
Yes. There are no restrictions in this regard.
Must an Israeli company pay tax on income received from beyond the territory of Israel?
Yes, it must. Israeli taxation laws are not based on the territorial principle.
Can a non-resident operate an account in Israel?
Yes, if heshe is a member of the board of directors.
Is additional legalisation of Israeli documents required for their usage outside of Israel?
Israel has joined the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents from October 5th, 1961. All official documents can be certified by Apostille. Apostille is being issued by the Court.