Every major and significant infrastructure project involves hundreds and sometimes thousands of companies from different fields. For example, one of the most recent projects that Auren Israel’s advisory team is undertaking is to excavate transport tunnels to Jerusalem for the benefit of roads and railways. We professionally accompany dozens of companies ranging from small international companies to large global companies, with each company executing its area of expertise in the project. Starting with electricity, sealing, digging, clean air, communication, a variety of technologies, etc.
In some of the acquaintances, the international companies participating are the direct winners of the state tenders, and in some of these acquaintances, the sub-suppliers.
The experts’ team of Auren Israel has extensive experience in accompanying infrastructure projects. Starting with the preparation for the tender, winning, and the ongoing support of the business activity, alongside with the achievement of the ultimate goal: bringing the profit back home. All of these services under one umbrella in one place provided by a personal, professional team.
The major projects in Israel usually offered to the public for participation in the PPP – “Public-Private Partnership” method. A method for carrying out public projects through a partnership of the public sector with the private sector. It is a contract between a government office and a private business entity, for a common purpose. The advantage of this method is that the initial cost, which is often very high, is borne by the business entity, which will eventually earn its money back from it, over time, without the extremely high cost of financing being imposed on the public.
The three common models used in Israel are:
PFI – “Private Finance Initiative”: The franchisee who sets up and operates the project receives payments mainly from the state, according to pre-defined performance criteria.
BOT – “Build, Operate, Transfer”: Build, operate, and transfer. In this method, at the end of the period, the property passes to the client, the public sector. The franchisee who runs the project receives payments mainly from the users of the service.
BOO – “Build, Operate, Own”: Construction, operation, and ownership – at the end of the agreement period, the property remains owned by the private sector.
The verity and range of projects are wide and its includes projects in these areas of expertise: Roads, Tunnels, Railways, Electricity and Energy, Environmental Health, Recycling, Clean Air, Clean Energy, Water Purification, Air Purification, Chemical Purification, Communication, Telephony, Internet, Satellite, Agriculture, Real Estate, Green Construction, Hotels, and Tourism Infrastructure.
We are at your disposal!
Mr. Ofir Angel
Chairman of AUREN Israel firstname.lastname@example.org
Business Generator, Technologies, Strategy, and International Taxation
Photo by freestocks on Unsplash
Auren Israel would like to invite you to a fascinating ZOOM meeting with Dan Cristal, Head of Human Capital Development and Organizational Learning hosted by the north mechanical engineering forum. Engineer Managers this meeting is for you.
About the event: We will have a discussion about the management challenges and adjustments that managers have to face in their new post coronavirus daily routines. The discussion will include challenges brought up by the participants of the event, alongside management dilemmas that rise-up during conversations with managers from various companies in Israel and from around the world. We will also provide you with optional tools and practical, proven, and systematic solutions.
Information about the event and registration: https://www.eventbrite.com/e/105452557438
Auren Israel, in collaboration with the Manufacturers Association, invites you to participate in a Webinar: Speed Response to the Market in a Changing Reality, through Zoom on Monday 11/5 at 11:00, with Chen Benedek, Director of Excellence in Operations and Supply Chain at Auren Israel. In the session, we will introduce the concept of TTM, its effects, and components on the operational aspect of the organization and its importance as a differentiation strategy, as well as practical tools for preserving and improving TTM and preparing the organization for challenges.
Click here to register
Zoom online Dated 11/05/2020
and operation of a fiscal representative office; should be registered by a
representative is responsible for the management of the company’s legal and
financial affairs in Israel; including all tax-related issues.
There are several
major advantages to a fiscal representative office registration over the establishment
of an Israeli company.
company’s business and tax-related activities are managed in resemblance to the way Israeli
companies are been managed.
Israeli daughter company decides to shut down its business activity, the
process might be long and challenging. On the other hand, the procedure of
shutting down a business activity of a fiscal representative office is an
expeditious procedure, which requires only to finalize and to report tax
and PR (Public relationships) might be the reason for some business entities to
give up and not to establish a company in Israel from the first place.
Registration of a branch or an office in Israel, by
its legal term, is under the supervision of the head office of the company
is why, a fiscal representative office in Israel might be the ultimate solution
for these kinds of business entities to conduct their business activity in Israel;
without the risk of potential damage to the parent company’s relations with other countries
that do not have trade relations or have no official statement about their
position in relation to Israel.
Note The professional and operational aspects of the organization’s
activity in Israel, usually are not handled by the representative office.
In most cases, when registering an office with a fiscal representative in Israel, there will be no additional tax on dividends after paying income tax on profits made in Israel.
business entity registers as an office with a fiscal representative,
withdrawing distributed profits obtained from Israeli business activities isn’t
considered a dividend. However, each situation requires a specific examination
of the relevant double taxation treaties between the residence country, where
the head office located and Israel.
signed treaties of double taxation with more than 55 countries.
representative office in Israel entails personal liability for all of the
Israeli branch tax debts for the foreign company.
result, it is customary to provide guarantees and deposits to the trust account
of the representative office for the duration of the business activity in
Israel. Furthermore, there is a legal business liability cover for the company
activities in Israel.
recommend that you examine and understand all the relevant aspects before
making a decision about the type of business entity you want to establish in
with local experts, who will provide you with the needed local insights and
information. Following that, you will be able to consider the advantages,
disadvantages and to review all the relevant threats and opportunities to make
the best decision for your business.
If the professional
recommendation will support the decision to define business activity as a
“fixed presence” in Israel, then a fiscal representative office needs to be
open before commencing the activity.
process of opening and registering such an office can take a few days and up to
more than a month, depending on several factors.
result, our advice is to make the necessary arrangements in advance, ”the sooner
Feel free to contact our experts to get a professional consultation.
For more information about Fiscal Representation services in Israel:
FISCAL REPRESENTATION IN ISRAEL
THE ALTERNATIVES WHEN STARTING A BUSINESS IN ISRAEL
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.
THE REGISTRATION OF A FISCAL REPRESENTATIVE OFFICE IN ISRAEL