Starting a company in Israel as a foreigner is a straightforward and welcoming process. There are generally no restrictions on foreign ownership – you can own 100% of an Israeli company as an individual or foreign corporation. Israel actively encourages foreign investment and places no general limits on foreign companies or sectors. The typical approach is to incorporate a Private Limited Company (Ltd.) in Israel (equivalent to a C-corp or Ltd. company elsewhere). We have outlined the steps you must follow, making the process clear and manageable.

Choose a Business Structure

Most foreign entrepreneurs form a new Israeli limited liability company (subsidiary) rather than operating as a branch of a foreign company. An Israeli subsidiary offers limited liability and local legal status and can be 100% foreign-owned. (Branches of foreign companies are possible but less common due to extra accounting and liability considerations.)

Register the Company

You’ll register your company with the Israeli Companies Registrar. This involves selecting a unique company name, drafting Articles of Association, and submitting incorporation forms (in Hebrew). There is no minimum capital requirement beyond a nominal share capital. The process is efficient – incorporation can be completed in days (or a couple of weeks) if all documents are in order. Foreign directors and shareholders are allowed (they will simply need to provide copies of passports for identification).

Local Address & Attorney Representative

Your company will need a registered Israeli address (an Israeli law firm can provide this if required) and an Israeli resident representative for certain filings like VAT. This is usually your local attorney or accountant handling tax compliance on your behalf.

Contact our firm’s highly experienced Israeli attorneys for a complimentary consultation specific to your startup needs.

Post-Incorporation Setup

After registration, you’ll open an Israeli bank account for the company, register for tax IDs (corporate tax and VAT), and obtain any industry-specific licenses if applicable. Israel ranks high in ease of doing business, so setting up these basics is relatively smooth.

FAQ: Do I Need an Israeli Co-Founder or Director to Open A Startup?

Israeli law imposes no residency or nationality requirements for directors or shareholders. As a foreign national, you can be the sole owner and director. However, we highly recommend engaging a local lawyer and accountant.

We, as your Israeli lawyers, can handle Hebrew documentation, regulatory filings, and ongoing compliance, ensuring your company is appropriately formed and meets all legal requirements from the start. This support system is designed to make your journey as a foreign entrepreneur in Israel as simple as possible.

As a foreign entrepreneur, you can fully own and control an Israeli startup. The process involves registering a company with the help of local professionals, but rest assured, there are minimal bureaucratic hurdles, and our Israeli lawyers can help you with all necessary matters. Israel’s pro-business policies and efficient registration system make it easy for you to launch your venture and join the Startup Nation.

Let Us Help You With Your Startup Investment in Israel

Contact our firm today at 888-923-0022 or via our online form for specialized, expert legal support in your Israeli business matters.

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