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Doing business
Israel
Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information
Setting up a company
Legal business entities
| Types of companies and capital (max/min) | Number of partners/shareholders and liability | Maximum and/or minimum capital | Liabilities | Registration fees |
| Public limited company (business corporation) | minimum 7 partners | no minimum capital | liability limited to the amount of contributions. | Company's registration documents certified by a lawyer: NIS 1,540; Registration to the Ministry of Justice: NIS 2,200. |
| Limited Liability Private Company (SARL) | minimum 2 partners maximum 50 partners | no minimum capital. | liability limited to the amount of contributions. | Company's registration documents certified by a lawyer: NIS 1,540; Registration to the Ministry of Justice: NIS 2,200. |
| La General Partnership | maximum 20 partners. | no minimum capital. | unlimited liability for debts and obligations of the company. | Company's registration documents certified by a lawyer: NIS 1,540; Registration to the Ministry of Justice: NIS 2,200. |
| Limited Partnership. | maximum 20 partners. | no minimum capital. | At least one partner should have an unlimited liability. The liability of other partners is limited to the amount of contributions. | Company's registration documents certified by a lawyer: NIS 1,540; Registration to the Ministry of Justice: NIS 2,200. |
- Business setup procedures
- According to World Bank, Israel is the country where it is easier and quicker to create a company and obtain a credit. There are 5 administrative procedures for opening a business in Israel. The companies should be registered with the Trade Register. Documents to be drawn up in Hewbrew and a financial analysis in Sheqels.
- The competent organization
- 2binisrael Site under joint responsibility of the Ministry of Aliyah Integration and the SME Authority (MATI).
Asakim Israeli site of MATI.
Ministry of the Industry, Trade and Labor.
Federation of Israeli Chambers of Commerce.
The marker: News of the world of business and technology.
Kompass: Israeli companies by area of specialization.
List of Trade associations in Israel.
FDI in figures
| Foreign Direct Investment | 2007 | 2008 | 2009 |
| FDI inward flow (millions USD) | 8,798 | 10,877 | 3,892 |
| FDI stock (millions USD) | 62,222.6 | 64,004.6 | 71,258.0 |
| Performance Index*, ranking on 141 economies | 63 | 54 | 80 |
| Potential Index**, ranking on 141 economies | 25 | 27 | - |
| Number of Greenfield investments*** | 21 | 41 | 20 |
| FDI inwards (in % of GFCF****) | 28.1 | 30.0 | 28.5 |
| FDI stock (in % of GDP) | 37.3 | 31.7 | 36.6 |
Source:
Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.
Why you should choose to invest Israel
- Strong points
- Israel is the country which invests the most in research and development (4.8% of the GDP) in the world. The country has a highly qualified manpower, particularly in engineering. The country is ranked 2nd place in world, with regard to availability of venture capital. The government provides the necessary support to entrepreneurs.
- Weak points
- Corporate tax is relatively high. The State of Israel has a significant public debt. Manpower costs are higher than Asian or East European countries. Lastly, Israel suffers from great geopolitical instability due to the political environment of the region.
- Government measures to motivate or restrict FDI
- Foreign investment incentives, to encourage investment in Israel, are given through the recently revised law. The new law differs from the first one by the addition of a financial incentives plan.
For further information consult Invest in Israel. - Bilateral investment conventions signed by Israel
- Israel has signed bilateral agreements with 37 countries.
To see the list of the countries click here.
To view the agreements, click here.
Procedures relative to foreign investment
- Freedom of establishment
- There are no restrictions on foreign investments except in the industry sectors of defence and telecommunications.
- Acquisition of holdings
- Any settlement concerning mergers and acquisitions or takeovers which differ from these that Israelis should follow .
- Obligation to declare
- Investment in Israel in neither subjected to authorisation nor registration except if the company wants to gain from certain advantages.
- Competent organization for the declaration
Finding assistance for further information
- Investment aid agency
-
Ministry of Industry and Trade
Israel's Investment Promotion Center
- Other useful resources
-
Business Opportunities of the Ministry of Foreign Affairs
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Last updates: September 2010
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