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GLOBAL INFO

Israel

COUNTRY:

Israel

QUESTION:

ANSWER:

1.      What are the main company forms in your country?

The main company form in Israel is the Limited Liability Company (Ltd.). It is possible to establish other kinds of entities such as limited partnerships.

2.      Which is the most preferred company form by foreign investors?

Limited Liability Company

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

No minimum capital requirements and no deadline for capital contributions.

4.      What are the basic rules of shareholders liability for company debts in this company?

The principal guideline is that the liability of shareholders is limited to any unpaid portion of the nominal value of the share capital. Other than the obligation to pay the nominal value of the shares, there is no personal liability imposed on the shareholders, except under rare circumstances which justify the “lifting of the corporate veil” (i.e., fraud, etc.).

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

The minimum number of directors is one. Both physical persons and corporate bodies may act as directors. There is no statutory requirement for the director to be resident in Israel.  

 

6.      How long does the registration procedure of this company take?

Registration is completed within 2-3 days from the date of submission and filing of all required documentation.

7.      What are the main costs of formation of this company in local currency?

A registration fee (and an annual fee, payable yearly thereafter) is payable to the Registrar of Companies. The initial registration fee is approximately NIS 2,500, and thereafter the yearly fee is approximately NIS 1,300.

8.      What is the average attorney’s fee of the formation of this company in local currency?

Fees vary from NIS 3,000-10,000 depending on the circumstances.

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

A private company is required to make filings of its initial incorporation documents (includes Articles of Association), identity of directors and shareholders and details of its registered office.  Furthermore, a private company is required to file an annual report with the Companies Registrar.  Liens granted by the Company are filed with the Companies Registrar as well.  The foregoing details are publicly accessible.

10.   What are the main auditor requirements?

Financial statements need to be audited annually.