Starting a Business

Standardised Company
Legal Form: Societe a responsabilite limitada (Srl)

Registration Requirements:

Procedure 1. Obtain company registration documents certified by an attorney

Time to complete: 3 days

Cost to complete: NIS 1,540 + 16.5% VAT (recommended minimum fee by the Israel Bar)

Comment: Obtain the following documents from the attorney: a certified application by the attorney to register a company; a certified affidavit by the attorney regarding First Directors competence to serve as such; attorney's certification of First Shareholders' signatures on Articles of Association; attorney's certification of First Shareholders' affidavits that there are no legal restrictions on the Company.

Procedure 2. File with the registrar of companies, Ministry of Justice

Time to complete: 1 day

Cost to complete: NIS 2,200 + 2 for each page in the Articles of Association

Comment: File Articles of Association, application certified by an attorney to register a company, a affidavit certified by an attorney regarding First Directors competence to serve as such, attorney's certification of signature of First Shareholders on Articles of Association Registry publishes company deeds online for free and there is no additional time spent.

Procedure 3. Register for taxes at Ministry of Finance, Income Tax Department

Time to complete: 15 days

Cost to complete: no charge

Comment: File company deed and ID certificate of registration. It takes up to 28 days to obtain final confirmation of the registration.

Procedure 4. Register for VAT at Ministry of Finance, Customs and VAT Department

Time to complete: 1 day

Cost to complete: no charge

Comment: The regional VAT office (Department of Finance) is a separate building from the regional income tax office, but also under the Department of Finance. Certificate of registration, identities of directors, and lease agreement must be filed. The VAT authority generally asks for a bank account in order to be able to send Vat returns to a company (or the other way around if it owes money to VAT). It takes a few minutes to open an account, assuming the company provided all needed documents, a company resolution to open the account and the rights of signature. There are no fees for opening the account, but there are bank commissions, which very according to the bank chosen & the scope of activity in the account.

Procedure 5. Register with the National Insurance Institute

Time to complete: 14 days

Cost to complete: no charge

Comment: Covers all gainfully employed, includes social security, unemployment insurance, severance pay funds, training funds, health insurance and pensions.