Israel – Company Incorporation Guide
Foreign-owner friendly structures with clear steps. Use this checklist for entity choice, filings, taxes, VAT, and compliance dates.
Snapshot
- Common entity: Private company limited by shares (“Ltd”).
- Foreign owners: 100% foreign ownership allowed.
- Administration: Minimum one director; no resident‑director requirement for private companies.
- Registered office: Israeli address required and filed with the Registrar.
- Timing & fees (2025): Incorporation often 1–3 business days after complete papers. Online fee NIS 2,497; annual fee NIS 1,306 by Mar 31 (NIS 1,734 from Apr 1).
How to set up
- Prepare the formation pack: Articles of Association; initial directors’ consents and IDs; registered office details; shareholder KYC (passports; for corporate owners—incorporation/Good Standing, incumbency, UBO declaration; notarization/apostille as requested).
- File incorporation via the Corporations Authority portal (often through a lawyer/CPA), pay the fee, and receive the Certificate of Incorporation and company number.
- Register with the Tax Authority (CIT and employer files), National Insurance (if hiring), and for VAT as an osek murshe (companies cannot be osek patur).
- Open a business bank account; expect robust AML/KYC (CRS/FATCA, UBO checks, source‑of‑funds, possible in‑person sign‑off and Israeli TIN for signatories).
Company taxes
- Corporate income tax: 23% (2025).
- VAT: 18% standard rate from Jan 1, 2025; exports and certain cross‑border services are zero‑rated. For B2B tax invoices ≥ NIS 20,000, an invoice‑allocation number is required.
- Withholding & incentives: Dividends generally 25% (30% for ≥10% holders); interest/royalties commonly 23% (treaties may reduce). Incentives are available for qualifying Preferred (Technological) Enterprises.
Accounting & filings
- Audit & reporting: All companies appoint an external auditor and file annual audited financial statements (IFRS or Israeli GAAP).
- Annual Registrar compliance: File the annual report and pay the annual fee (NIS 1,306 by Mar 31; NIS 1,734 from Apr 1 in 2025). Maintain proper books in Israel and file corporate/VAT/payroll returns per assigned cycles.
Banking, KYC, and tips
- Expect strong AML/KYC, UBO verification, and explanations of source/use of funds; foreign owners without Israeli ID will be assigned the necessary identifiers.
- Plan ERP/invoicing to support the VAT rate and invoice‑allocation control; align numbering for invoices ≥ NIS 20,000.
Ready to start? Email [email protected] or [email protected].