Starting a business in Israel- Bailey Spitz
Starting a business in Israel merely requires following the correct procedure. Here is the basic procedure step by step:
- Choose a legal business structure: is your company going to be a Private Limited Company (Ltd.), this is most common for small to medium business structures. Public Limited Companies are common for companies with a large number of shareholders. A company can also be Foreign Company Branch which is perfect for foreign businesses looking to operate in Israel.
- Then you must choose a unique and non-registered company name. You can check the availability of the name on the website of the Registrar of Companies.
- Prepare the documents needed for registering your business: have a Memorandum of Association outlining the company’s structure, purpose, and details of shareholders. You also need Articles of Association, a Declaration of Directors agreeing to service and of Shareholders on their agreement to form the company.
- Next you must fill out the Application Form to register your business with the Israeli Corporations Authority. This requires your company name, objectives, registered office address in Israel, share capital, and names addresses and identification for all directors and shareholders. This form can be easily submitted online or by mail and in person to the Registrar of Companies office.
- After you submit the application and pay the registration fee the Registrar of Companies will review the application. This process usually takes about 5-7 business days.
- Once the company has been approved they will be issued their Certificate of Incorporation officially establishing them as a legal company in Israel.
This newly formed company can then be registered as an employer. It then must also register with the tax authority, obtain licenses and permits that are necessary, set up financial systems, obtain business insurance, and more.
manpower license
At any point in a company’s lifecycle after it has registered for incorporation and tax registration it can then seek the necessary licensing to be a manpower company. This requires applying for a manpower license from the Ministry of Labor, Social Affairs and Social Services. The company would submit a detailed business plan, information about management and finances, and details needed to ensure compliance with labor laws. Once obtained, then the company would also be required to adhere to safety and health regulations and obtain the necessary insurances. They must also conduct regular audits to ensure compliance with labor laws and may be required to report to the Ministry of Labor as mandated.
