Company Incorporation Guide

Israel company registration for founders abroad

Applicable country/region: IL - Israel

Published: October 3, 2026Updated: October 3, 2026

Written by our advisory team
Israel rules and requirements
Checked against official sources

Israel

Most popularIsrael Company Registration

Guide overview

From the register to a company that can trade

Israel company registration means entering a new private company in the register kept by the Registrar of Companies at the Israeli Corporations Authority (ICA), part of the Ministry of Justice. The Companies Law, 5759-1999, sets the rules. The Registrar's entry creates the company, but it opens no tax file. The company opens its own files with the Israel Tax Authority (ITA) before it trades. The first choice is the legal form, a private company or a foreign company's branch. Next come the signatures of founders and first directors, and how they are verified from Israel or abroad. Then come the registered office, the ITA files due before the first invoice or salary, and what is left once the certificate arrives.

COMPANY TYPES

A private company or a branch of the foreign parent

Which form fits depends on who is setting up. Under the Companies Law, the starting form for trading is the private company (chevra pratit) limited by shares. Its Hebrew name ends in be'eravon mugbal, abbreviated ba'am. Any English name ends in Ltd. That suffix marks limited liability in any company, public or private. The Ltd is a corporation separate from its owners. Its articles set the share capital. A group already trading abroad can instead register its parent as a foreign company (chevrat chutz) with a branch. The parent applies within one month after it sets up a place of business in Israel. That branch is the foreign company itself, not a separate Israeli person.

Reading the company types

Rows cover ownership, shareholder and director rules, capital and notes for each company type.

Israel ltd Basic Information

Ownership:

Consolidated Ownership

Limited Liability:

Positive

Publicly Participates In Capital Market:

Negative

Israel ltd Shareholder / Director / Secretary Requirements

Requirements For Shareholders:

At least one

Requirements For Directors:

At least one

Legal Representative Not Mandatory:

Positive

Local Directors Not Mandatory:

Positive

Local Secretaries Not Mandatory:

Positive

Israel ltd Registered Capital Requirement

Minimum Registered Capital Requirement:

No requirement

Capital Injection Not Required:

Positive

REQUIRED DOCUMENTS

What the Registrar receives, and signing from abroad

The Registrar receives a registration application with declarations from the first shareholders. It also gets the articles of association and a first directors' declaration. The articles may be in English. They are the only constitutional document, with no memorandum. The Companies Law's default provisions fill their gaps. The Registrar's online registration service has a route without a lawyer's verification. That route needs every shareholder and director to be an Israeli citizen. Otherwise the filing carries documents verified by a lawyer. Founders abroad usually sign before a notary or an Israeli consul. A notary's verification takes an apostille under the Hague Convention. A foreign corporate shareholder signs through an authorized signatory. It adds certified proof of its incorporation and current existence.

Reading the documents

Rows are document types grouped by who provides them; each entry ends with its process and format.

Natural Person Shareholders & Directors's Required Documents

Passport:

After the Hebrew notarization, Apostille needs to be done.

Process: ApostilleFormat: Scan Copy

Power of Attorney:

After notarizing in Hebrew, Apostille is required.

Process: ApostilleFormat: Scan Copy

Proof of Address:

The Israeli Chamber of Commerce will decide on its own whether certification is required.

Process: Not ApplicableFormat: Scan Copy

REQUIREMENTS AND ESTIMATED COST

Israel company registration and the registered office

A registered office is where official notices reach the company and documents are served. Every company must keep one in Israel from registration onward. It must be a full street address. A P.O. box serves only for mail. Own premises, a lease or a host's office all work. The host must be named. The application states the address, and a change goes to the Registrar within 14 days. The company also gives a digital address. A business license is a separate matter. It is needed only for activities listed under the Business Licensing Law, 5728-1968. The head of the local authority issues it. The registration fee is a flat amount set by regulation.

Reading the requirements

Base cost is the service and government fees; each requirement shows if it is included and what solving it costs; the estimate adds them up.

Base Cost

Service Fee:

EUR 6,875

Requirements

Registered Address: Need to have an address in Israel

Israeli company registration must have an Israeli address. If there is no Israeli address, you can choose the address hosting service provided by TKEG Expat ™ (EU).

Included: No · Solution available

Estimated Cost

Estimated Cost:

EUR 6,875

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TAX

Opening the tax files, and the withholding trap

Form 4436 opens the company's income tax and withholding files at the ITA. The certificate of incorporation goes with it. VAT registration is due no later than the day business starts. It uses the ITA's Form 821 application. A company always registers as an authorized dealer (osek murshe), never as an exempt dealer. The trap for a new supplier is tax withheld at source. Business customers covered by the withholding rules deduct it from payments. A withholding certificate from the ITA can lower the rate. A new company's first certificate lasts at most six months. Before the first salary, the company needs that withholding file. From it, the National Insurance Institute (NII) opens its employer file (in Hebrew).

Reading the tax data

Rows cover corporate income, withholding, value-added and capital gains tax, plus effective rates, for each jurisdiction.

PwC World Tax Summary OECD Statistics

Corporate Income Tax (CIT)

General CIT Rate:

CIT Return Due Date:

Within five months after the end of the tax year.

CIT Payment Due Date:

If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.

CIT Estimated Payment Due Date:

Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.

Withholding Tax (WHT)

Resident Withholding Tax (Dividend/Interest/Royalty):

0 or 23/23/30

Non-Resident Withholding Tax (Dividend/Interest/Royalty):

25-30/23/23

Value-Added Tax (VAT)

General VAT Rate:

Learn More Value-Added Tax (VAT)

Capital Gain Tax (CGT)

General Capital Gain Tax Rate:

Capital gains are constrained by the normal corporate income tax rate.

Effective Tax Rate (ETR)

Composite Effective Average Tax Rate:

21.47%

Composite Effective Marginal Tax Rate:

16.63%

Conclusion

After the certificate: the bank and the yearly filings

An accepted file comes back as a certificate of incorporation stating the company number. Since 18 February 2025 it has been issued in Hebrew and English. Basic register details are free. A full company extract is paid for online. A corporate bank account is a separate step. The bank keeps certified founding documents and the resolutions naming signatories. It records who controls the company. Each calendar year an annual report goes to the Registrar. The annual fee (in Hebrew) is owed from the calendar year after registration. A missed report or fee leads, after a 30-day warning, to listing as a company in violation (chevra meferet). From the day the certificate issues, put those dates in the calendar.

Israel

Most popularIsrael Company Registration

Jurisdiction Overview

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