Registering a Corporation in IsraelThere is no restriction placed on an overseas resident who wants to set up a corporation in Israel.
No minimum capital has to be proven for an overseas resident to obtain approval to set up a corporation or to open a bank account in Israel.
Everyone is allowed to establish a company in Israel , on condition that the company is not illegal or immoral.
The company may have a single shareholder.
The company name must not be similar to other company's name in Israel, or have a name considered deceitful or misleading by the registrar.
A company with limited liability should include at the end of its name "Ltd" or "Limited Liability".
The application to register a company has to incude:
- Copy of the articles of association.
- Shareholders declaration.
- Declaration of primary directors willing to act as directors.
The articles must include the company name, goals and details about the share capital.
The registration fee is IS 2,345 . In the following years there is an annual fee of IS 1,277
Setting up a corporation in Israel through a lawyer takes 2 - 3 days and includes the following stages:
|1. Preparing the Memorandum and Articles of Association.|
|2. Registration with the Companies Registrar|
|3. Adopting a resolution on the Directors of the Company/Authorized Signatories.|
|4. Opening a bank account for the corporation|
|5. Opening a file with the VAT Authorities|
|6. Printing tax invoices/receipts|
|7. Opening 2 files with the Income Tax
a. A Corporation file.
b. An Employers File (for the corporation employees)
Stages 1 - 3 are carried out by an attorney.
Stages 4 - 7 are carried out by a CPA.
The total average/initial cost of the lawyers and accountants fees excluding fees to the Companies Registrar amount to US$ 2,000- 2,500.
Bookkeeping FeesThe monthly payment to a CPA for bookkeeping is influenced directly by the extent of the work and quantity of documents.
Nevertheless, the average monthly fee for small corporations is $300 - $600 a month, for medium corporations: $1,000 - $3,000 a month and for preparing an annual balance sheet, $1,300 - $3,000.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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