December 23, 2024
INCORPORATION OF LLC IN ISRAEL
INTRODUCTION
To establish a limited liability company (“LLC”) in Israel requires a minimum capital of $1 per share and at least one shareholder. Due to its ability to shield shareholders from personal liability for business debts and permit public trading of its shares, an Israeli LLC is a desirable choice for funding and investment. It is simple and inexpensive to form an LLC in Israel with just one shareholder.
LEGISLATIVE FRAMEWORK
In Israel, LLCs are created in accordance with the Companies Law, 5759-1999. This comprehensive law lays out the requirements and procedures for establishing and operating enterprises in the country. The law specifies how a business must be registered, including sending the necessary documents, such as the Memorandum and Articles of Association, to the Registrar of Companies.
STEPS TO INCORPORATE
Key Steps to Incorporate an LLC in Israel:
- Choose a Company Name: Select a unique name that is not similar to existing companies and is not misleading or offensive.
- Draft Articles of Association: This document serves as a contract between the company and its shareholders and must include:
- Company Objectives: Specify the lawful activities the company intends to undertake.
- Shareholder Liability: State that liability is limited to the shareholders’ capital investment.
- Share Capital Details: Define the company’s share capital, share classes, and distribution among shareholders.
- Complete Required Forms:
- Company Registration Application: Includes details like the company name, shareholder information, and share capital.
- First Directors’ Declaration: Confirms the directors’ consent to serve.
- Shareholders’ Declaration: Affirms that there are no legal obstacles to their participation.
- Submit Documents to the Registrar of Companies: All documents, along with the registration fee, are submitted to the Israeli Registrar of Companies.
- Appoint a Local Representative (if applicable): If all directors and shareholders are foreign nationals, appointing a local representative for tax purposes is advisable.
- Register for Taxes: After incorporation, register with the Israel Tax Authority for Value Added Tax (“VAT”) and income tax purposes.
- Open a Bank Account: Establish a corporate bank account in Israel to facilitate financial transactions.
CONCLUSION
In conclusion, according to the Companies Law of Israel, Law No. 5759-1999, an LLC must have a minimum of one shareholder and $1 in share capital in order to be incorporated in Israel. The procedure entails opening a corporate bank account, registering for taxes, and sending the necessary documentation to the Registrar of Companies. Directors or shareholders from other countries might consider appointing a local representative.
HOW WE CAN HELP?
- We offer insights into regulatory changes and recommendations on how to react to these changes while avoiding risks.
- Our team offers specialist assistance to help firms navigate Israel’s complex and dynamic economic landscape.
- Throughout the process of starting a business in Israel, our professionals will help you make sure that all the necessary paperwork is completed, including registration, licensing, and tax duties for the LLC incorporation in Israel.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
