START A COMPANY / MIDDLE EAST
How to register a company in Israel
Register a private company (Ltd) with the Registrar of Companies through an attorney or online, then register with the Tax Authority for income tax, VAT (18%) and withholding. Corporate tax is 23%.
- REGISTRY
- Israel Corporations Authority, Registrar of Companies (Ministry of Justice)
- ONLINE
- Fully online
- FROM
- ₪0 (≈ £1)
- STRUCTURES HERE
- 3
Setting up from abroad
Yes. No nationality or residency restrictions on shareholders or directors; directors can live abroad. You need a registered address in Israel (often a law firm) and an attorney or authorised signatory; a tax file and Israeli bank account follow, with bank KYC the slow part.
PRIVATE LIMITED COMPANY
Ltd: Private Limited Company (Chevra Ba'am)
Startups, subsidiaries and any business wanting limited liability and investor-friendly structure.
- Liability
- Limited to what you put in
- You need
- 1 shareholder and 1 director
- Minimum capital
- None; shares usually issued at NIS 0.01 to 1 each
- Time
- 1 to 2 weeks
Steps
Choose and check a company name with the Registrar.
Prepare Articles of Association (Hebrew or English).
Appoint directors and shareholders (can be foreign).
Provide a registered Israeli address.
Submit the application with a lawyer's declaration to the Registrar of Companies and pay the registration fee.
Receive the certificate of incorporation and company number.
Open a tax file with the Tax Authority (income tax, VAT, withholding).
Open a bank account.
Documents
- Articles of Association
- Passport or ID copies of founders and directors
- Registered address
- Lawyer's declaration
- Details of share allocation
Official fees
Registration fee about NIS 2,606 (unverified for 2026); annual company fee about NIS 1,500.
Budget
| How | About | What it covers |
|---|---|---|
| Do it yourself | ₪2,700≈ £660 | DIY: registration fee only, about |
| With an accountant or agent | ₪6,000≈ £1,500 | About: with a lawyer and accountant for registration and tax files |
| Full service | ₪15,000≈ £3,700 | About: lawyer, registered address, tax setup and bank account help |
Every year
- Pay annual company fee to the Registrar
- File annual tax return (due within 5 months of year-end, extensions common)
- File annual report to the Registrar
- VAT returns monthly or bi-monthly
- Audited accounts (required for most Ltds)
Check before you rely on it. Not confirmed with an official source: fee amount from a secondary source.
SOLE TRADER
Osek Murshe: Licensed Dealer (Osek Murshe), self-employed
Freelancers and small traders whose turnover is above the exempt-dealer limit.
- Liability
- Unlimited: you are personally liable
- You need
- 1 individual
- Minimum capital
- None
- Time
- 1 to 7 days
Steps
Open a file with the Israel Tax Authority (income tax and VAT) via the online form or an accountant.
Open a National Insurance Institute file as self-employed.
Choose a VAT reporting period.
Get a bookkeeping system and invoice book (or digital invoice).
Open a business bank account.
Start issuing tax invoices.
Documents
- ID or passport and residence status
- Bank account details
- Business address
Official fees
No registration fee; National Insurance and income tax contributions apply.
Budget
| How | About | What it covers |
|---|---|---|
| Do it yourself | ₪0≈ £1 | DIY: no official fee |
| With an accountant or agent | ₪1,500≈ £370 | About: accountant to open files for the year |
| Full service | ₪4,000≈ £980 | About: accountant and monthly bookkeeping for the year |
Every year
- File annual income tax return
- Pay income tax and National Insurance advances
- VAT returns
- Keep invoices and books
Check before you rely on it. Not confirmed with an official source: an Osek Patur (exempt dealer) option exists below an annual turnover limit (about NIS 120,000). Non-residents generally need a company.
BRANCH OF A FOREIGN COMPANY
Foreign company branch: Registered Foreign Company (Chevra Zara)
A foreign company with an existing business that wants to trade in Israel without a subsidiary.
- Liability
- Unlimited: you are personally liable
- You need
- A foreign parent and an Israeli representative
- Minimum capital
- None
- Time
- 2 to 4 weeks
Steps
Prepare the parent's incorporation documents.
Apostille the documents and translate if needed.
Appoint an Israeli authorised representative.
Submit the application to the Registrar of Companies.
Pay the registration fee.
Receive registration as an overseas company.
Register with the Tax Authority.
Documents
- Parent certificate of incorporation (apostilled)
- Articles of the parent
- Authorised representative's details
- Board resolution
Official fees
Registrar fee similar to a company, about NIS 2,000 to 3,000 (unverified).
Budget
| How | About | What it covers |
|---|---|---|
| Do it yourself | ₪3,000≈ £740 | DIY: registration fee, about |
| With an accountant or agent | ₪9,000≈ £2,200 | About: lawyer and document apostille |
| Full service | ₪20,000≈ £4,900 | About: lawyer, address, tax setup and bank help |
Every year
- Annual report to the Registrar
- Corporate tax return on Israeli profits
- VAT returns
Check before you rely on it. Not confirmed with an official source: most foreign groups choose a subsidiary Ltd for tax and banking reasons.
After you register
- Register with the Israel Tax Authority; corporate tax is 23% (verify annually), VAT 18%, and withholding on salaries.
- Register employees with the National Insurance Institute; employer social security contributions apply.
- Open a bank account (KYC can take several weeks, especially for foreign owners).
- Register beneficial owners with the Registrar; the register of significant controllers is being phased in (unverified).
- Keep audited accounts and file annual returns.
- Check sector licences with the Ministry of Economy or local authority business licence (rishui esek).
Sources
Checked against:
Pound amounts use HMRC's exchange rates for 2026-10 and are a rough guide only.
Other countries in Middle East
This guide is general information to help you plan, not legal, tax or immigration advice. Fees, forms and rules change: check the official registry before you file, and take professional advice for anything complex. Agent and lawyer costs are typical market prices, not quotes.