Registration of a company in Israel by a foreign resident or a foreign company
This article is address to business people living outside of Israel, who wish to establish a company in Israel, or companies based outside of Israel who wish to establish a subsidiary in Israel, or lawyers who represent the above.
Company registration in Israel
A person or company who wishes to establish a company in Israel while living outside of Israel may encounter several issues:
Only original documents signed with the original signature, can be submitted to the Registrar of Companies in Israel. The documents must be in Hebrew. Those who wish to establish the company, the company's first shareholders and directors, must sign an official to confirm the signatures. Such an official is the Israeli consul abroad (in the country of residency of the shareholders and / or the directors) or an Israeli lawyer (Inside Israel only). Sometimes the consul is located away from the shareholders and / or directors and has no easy access to him. Signing documents in Hebrew for a person who does not speak and understands Hebrew needs to be translated to the local language by a Notary.
Israeli company must have a physical address in Israel in order to receive official documents. Address must be a physical address and not a mailbox only. A Lawyer office, as a representative, can provide his address.
The procedure with the Registrar of Companies takes several of weeks, after receiving all documents needed. In order to register a company with directors or shareholders who are foreign residents, a copy of their passport must be attached to the registration documents.
Company Terms &Conditions document
One of the documents required to establish a company in Israel is the Company terms and conditions.
The Company terms and conditions determine the rules for the conduct of the company, such as the appointment or dismissal of directors, the convening of a general assembly of shareholders or the board of directors. These terms and conditions also have a meaning to the internally relationship in the company (the relationship between the shareholders, between shareholders and the board of directors etc...) and also externally - in the relations between the company and third parties. It is very important that this document be drafted by an Israeli lawyer.
Israeli Company registration solutions.
We have several of solutions to bypass the difficulties of registration of an Israeli company for a foreign entity. For example: Register the company under the name of the lawyer in a temporary and short term trust for the client and immediately after the registration of the company, transfer of the shares to the client.
Registration of a company in Israel owned by a foreign resident or a foreign company is certainly possible, but this should be done with attention to the aforementioned aspects.
Our Law Office has extensive and significant experience in assisting in the registration of companies by residents or companies that are located outside of Israel and with ongoing accompaniment of these companies in their activities in Israel. We will be happy to provide professional legal services to you or your company.
Eli Shimony - Israeli law firm representing clients on all civil/commercial legal issues in Israel. For any questions please contact us and we will be happy to assist.
Email: [email protected], Tel: +972-52-2769773, +972-3-5507155.
The above article is a general information only and it is not intended to replace a legal advice.