Forming a company in Israel involves several steps,

and the process can vary depending on the type of business entity you choose to establish.

 

The most common forms of business entities in Israel are:

1. Private Limited Company (Ltd.): This is the most common form of business entity for foreign investors and local entrepreneurs. It limits the liability of the shareholders to the amount they have invested in the company.
2. Public Limited Company (PLC): Suitable for larger ventures, a PLC can offer shares to the public. It requires a higher level of regulatory compliance compared to a private limited company.
3. Partnership: There are two main types of partnerships in Israel: General Partnerships, where all partners have unlimited liability, and Limited Partnerships, where at least one partner has unlimited liability, and the others have liability limited to their investment in the partnership.
4. Branch or Representative Office: Foreign companies may opt to open a branch or representative office in Israel, which involves different regulatory requirements compared to establishing a new Israeli entity.

Here are the general steps to form a private limited company in Israel, which is the most common route for small to medium-sized businesses:

1. Name Approval: Choose a unique name for your company and get it approved by the Israeli Registrar of Companies.
2. Articles of Association: Draft and file the Articles of Association, which outline the company’s operational rules and shareholder rights.
3. Registration with the Companies Registrar: Submit the necessary documents, including the Articles of Association and identification details of the shareholders and directors, to the Companies Registrar.
4. Tax Registration: Register with the Israeli Tax Authorities for income tax and VAT, if applicable. This involves obtaining a tax identification number.
5. Opening a Bank Account: Open a corporate bank account in Israel. You will need to provide various documents, including the incorporation documents and identification for the company’s directors and shareholders.
6. Regulatory Compliance: Depending on the nature of your business, you may need to obtain specific licenses or permits to operate legally in Israel.
7. Social Security and National Insurance: Register with the National Insurance Institute (Bituach Leumi) for social security and other employment-related insurances.

 

The process can take several weeks to a few months, depending on the complexity of the business structure and the efficiency of the submission of all required documents.