Be aware that the local law
requires, either to establish an Israeli company or to register a branch and to
operate with a fiscal representative office; to conduct business activity in
We recommend starting the process
before the actual business activity starts. To decide on the suitable legal
formal structure, and to register or establish the chosen business entity
before conducting any business activity in Israel. For your notice, the whole process
might take a while.
project period should be a major factor in the decision of the preferable
legally structure to serve your business in the best way.
contractors, services providers, consultants of any kind, under a short-term or
a long-term agreement. In many cases, register a branch with a fiscal
representative office pat will be the preferable choice for you.
with a fiscal representative office means that the local representative office
is responsible for the legal and financial issues, dealing with the company’s
tax obligations and representing the foreign company before the local Israeli
authorities. Yet, the professional and
operational aspects of the organization’s activity in Israel, usually are not
handled by the representative office.
there are cultural and law gaps it is required to have someone who can bridge these
gaps over for you, dealing with the local authorities, knowing what to do and
how to fulfill the requirements.
It is a recommended
option as a solution for both short-term and long-term projects; you should
downside is that you can’t work freely, you need the approval of the head
office overseas. Legally you are operating under the supervision of the head
office company, which is located abroad.
if you are counting on working as an independent office with a full legally
freedom, our suggestion is for you to keep reading.
need to consider the potential of future activity in Israel.
If you are
about to base your activity in Israel, having a head office and establishing an
Israeli company with a local permanent office, which is working independently
and freely without needing the business and legal approvals of the head office
overseas. An office that functions as an independent unit, as an Israeli
If this is
your case, you should be familiar with the local Israeli companies’ law.
The local companies’
law (1999) states that a foreign company, which manages its business activity
in Israel, is required to register with the Ministry of Justice’s Registrar of
company registered outside Israel and anybody of persons, other than a
partnership, registered or incorporated outside Israel.”
foreign company shall not keep a place of business in Israel, and in particular
shall not maintain an office for the transfer of shares or for the registration
of shares, unless registered as a foreign company under the provisions of this
section and unless it pays the registration and publication fees prescribed by
the Minister under this section.”
company is required to register with the tax authorities in Israel, including
the VAT, income tax and national insurance authorities.
registration process should be completed before the company commenced any
business activity in Israel.
to register a foreign company must be submitted to the Registrar of Companies
within one month following the establishment of the business.
(1) A copy
and translation of the company’s Articles of Association authenticated by a
notary in Hebrew, which confirms the accuracy of the translation. Signatures
are not required on a copy of the regulations.
(2) A list
of the directors of the company.
name and address of Israeli representatives authorized to receive documents and
mail for the company.
(4) A copy
of the document appointing a representative to handle the company’s affairs and
to act under a power of attorney.
certificate of incorporation of the company from its state of origin signed by
a notary and a document showing that the company’s registration is still valid
and active as of the date the application is filed.
acting as the fiscal representative of many foreign companies in Israel; on top
of that, our experts provide services for foreign companies’ wishes to register
as Israeli companies.
full support through the process of the establishment of an Israeli company;
from filling the required documents towards the achievement of the desired recognition
as an Israeli company.
Furthermore, after receiving the recognition as an Israeli company; we can provide the company with all the required financial and fiscal services needed.
For more information about Fiscal Representation services in Israel:
FISCAL REPRESENTATION IN ISRAEL
THE REGISTRATION OF A FISCAL REPRESENTATIVE OFFICE IN ISRAEL