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Guide to Starting a Business in Israel

Staff Reporter | 4:16 PM |

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.


Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Israel. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Obtain company registration documents certified by an attorney3 daysNIS 1,798 + VAT (recommended minimum fee by the Israel Bar)
2File with the registrar of companies, Ministry of Justice2 daysNIS 2,554 + NIS 4 for each page in the Articles of Association
3Register for taxes at Ministry of Finance, Income Tax Department15 daysno charge
* 4Register for VAT at Ministry of Finance, Customs and VAT Department1 day, simultaneous with procedure 3no charge
* 5Register with the National Insurance Institute14 days, simultaneous with procedure 3no charge
* Takes place simultaneously with another procedure.