{"id":3978,"date":"2021-04-21T09:45:41","date_gmt":"2021-04-21T07:45:41","guid":{"rendered":"https:\/\/auren.com\/il\/blog\/establishment-of-a-company-in-israel\/"},"modified":"2021-04-21T09:45:41","modified_gmt":"2021-04-21T07:45:41","slug":"establishment-of-a-company-in-israel","status":"publish","type":"blog","link":"https:\/\/auren.com\/il\/blog\/establishment-of-a-company-in-israel\/","title":{"rendered":"Establishment of a company in Israel"},"content":{"rendered":"

In recent years, Israel encouraged many international companies to conduct business activities in Israel mainly in the fields of infrastructure, medicine, food-tech, as well as investment in technological development centers and start-up companies. Read about how to establish a company in Israel.<\/span><\/em><\/h2>\n

In order to start a business in Israel, it is obligated to establish a legal entity in Israel in two options:<\/p>\n

1st<\/sup> option – Open a company in Israel with the Israeli registrar of companies<\/strong><\/h4>\n

Registration of a company<\/a> in the registrar of companies requires issuing shares to the company, deciding who the shareholders and directors.<\/p>\n

The common structure of international companies in Israel characterized by subsidiary (Daughter Company) of the company abroad, which will serve as a mother company. There are cases where the shareholders of the company in Israel are individuals.<\/p>\n

2nd<\/sup> option \u2013 Branch registrar with the Israeli registrar of companies<\/strong><\/h4>\n

Another option is to register a branch in Israel, a decision that requires registration with the Registrar of Companies of an Israeli legal entity without shares. In such a case there is a branch of the head office abroad.<\/p>\n

As mentioned, since there is no registration of a company with shares, any money transfer from Israel to abroad will not be considered a dividend payment (since the dividend is a transfer of profit to shareholders). As a result, profit can be transferred between companies and countries in other legal ways, which can save tax obligations to your Israeli registered company, or branch.<\/p>\n

This option is not so common, and has advantages and disadvantages. However, from our experience, the tax benefits of branch registration are significant.<\/p>\n

In many cases, international companies that have not received professional advice on the subject come to us, and immediately decide to establish a company, and lose significant tax benefits that exist in registering a branch.<\/p>\n

Open a branch VS Open a company<\/strong><\/h4>\n

\"\"<\/p>\n

\u00a0<\/p>\n

We recommend to have professional advice before starting a business activity in Israel, in order to choose the legal entity that will suit the business activity.<\/p>\n

Consult with an expert to start your business activity in Israel:<\/p>\n

\n
Contact<\/a><\/div>\n<\/div>\n

Yaniv Angel<\/p>\n

Managing Partner, Auren Israel<\/p>\n

International taxation expert<\/p>\n

yaniv.angel@auren.co.il<\/strong><\/a><\/p>\n<\/p>\n

\n

Read more:<\/p>\n

Five important tips on your way to open a bank account in Israel<\/a><\/p>\n

The alternatives when starting a business in Israel<\/a><\/p>\n

The registration of a fiscal representative office in Israel<\/a><\/p>\n<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

In recent years, Israel encouraged many international companies to conduct business activities in Israel mainly in the fields of infrastructure, medicine, food-tech, as well as investment in technological development centers and start-up companies. 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