If you are looking for a profitable investment option in 2023, then to register a company in Israel, as well as to open an account with Israel banks, will be a good solution to start an international business.
Israel is an independent industrial state located in the Middle East (southwest Asia) and has access to the Mediterranean Sea.
The closest neighbors of the state are: Lebanon, Jordan, Syria, Egypt and partially recognized territories of Palestine (Gaza Strip, West Bank).
The most important sectors of the economy are: services, an agriculture, an energy, an industry (a construction, a woodworking, a chemical, a clothing, a tobacco), a food industry, a pharmaceuticals, a tourism.
The capital of the state is Jerusalem. Largest cities: Haifa, Jaffa, Tel Aviv and others. An official language is Hebrew. The state currency is the new Israeli shekel (ILS).
The benefits of doing business in Israel
In 2019, Israel took the following positions in the global Doing Business ranking: 49th in terms of ease of doing business, 45th in registering companies and 23rd in protecting minority shareholders.
If you plan to open a company in Israel remotely, then the key reasons for choosing this jurisdiction will be the following:
- A rapid economic growth;
- A strong political position;
- A high level of GDP;
- An advanced research base;
- A modern infrastructure;
- The presence of highly qualified labor resources;
- A high state interest in attracting foreign capital;
- A flexible tax system;
- More than 40 double taxation agreements with countries in Europe, Asia and Latin America.
To those, who wish to register a company in Israel and to open a corporate account in Israel banks, should rely on the following priority business areas: a tourism, a medicine, legal and financial services, real estate operations, IT-technologies.
Types of companies in Israel:
In order to open a company in Israel, first of all, you will need to choose the appropriate form of economic activity, in particular:
- Limited Liability Company (Hevra Baam // Ltd);
- Open / Closed Joint-Stock Company (SJSC / OJSC);
- Individual Entrepreneur (Esek Patur / Esek Murche / SP);
- Partnership (P);
- Co-op ©;
- Nonprofit Organization (NPO);
- A branch;
- Representative Office (RO);
If you are interested in registering a company in Israel, we recommend you to give preference to such legal forms as: individual entrepreneur (SP) and joint-stock company (SJSC / OJSC), which offer the most convenient and favorable conditions for entrepreneurship.
Conditions on which it is possible to start business in Israel
You can set up a firm in Israel under strict observance of the following conditions of the local Regulator:
- A unique name in Hebrew and English (a mandatory indication of OPF at the end). You cannot use words, such as a cooperative, a municipal, a government, a chamber of commerce, etc;
- The number of directors is from 1 or more (individuals / legal entities, residents);
- The number of shareholders is from 2 or more (individuals / legal entities of any residency status);
- A presence of a secretary (only an individual, resident);
- A registered capital is 30 thousand ILS;
- The presence of a registered office;
- Annual filing of financial statements and the audit.
Tax treatment
If you intend to establish a company in Israel, then first we recommend you to read the list of tax obligations for legal entities:
- A standard income tax rate is 23%;
- A dividend tax is 23-32%;
- A value added tax is 17%;
- A personal income tax is 10-50% (depending on annual profit).
Doing Business in Israel
If you intend to open a company in Israel remotely in the near future, then YB Case specialists are ready to provide you with professional legal assistance today, in particular: to provide you with legal advice on the current business climate of the chosen jurisdiction, on opening an account in Israel. You can order a professional legal support in obtaining a business license in Israel, and also draw up all related documentation.
