Establishing and Registering a Company in Israel

Establishing and Registering a Company in Israel

Full legal service for incorporating an Israeli company (Ba"m / Ltd.) — from name reservation and articles of association through filing with the Companies Registrar and tax authority registration. Personal representation by Adv. Reut Eliyahu for Israeli and international clients.

Establishing and registering a company in Israel is one of the most common steps taken by entrepreneurs, investors, and businesses looking to operate in the Israeli market. Whether you are an Israeli resident, a foreign national, or an international company looking to establish a local presence, the process involves legal-administrative procedures before the Israeli Companies Registrar (Rasham HaHavrot), as well as coordination with Israeli tax authorities.

The most common structure for new businesses in Israel is a Private Company Limited by Shares (Baal Am — Ba"m), equivalent to an LLC or Ltd. in other jurisdictions. This structure offers limited liability for shareholders, clear corporate governance, and flexibility for a wide range of business activities — from startups and small businesses to subsidiaries of international corporations.

This page covers establishing and registering an Israeli company (Ba"m). If you represent a company incorporated outside Israel and wish to register it as a foreign entity operating in Israel, see our dedicated page: Registration of a Foreign Company in Israel →

Why Our Firm

Eliyahu & Co. Law Office is a civil, commercial, and real estate law firm with over 20 years of legal experience, representing entrepreneurs, investors, and companies in Israel and internationally. We provide full legal service for company registration in Israel — from the initial consultation and name reservation through incorporation, articles of association, shareholder agreements, and post-registration compliance.

Adv. Reut Eliyahu personally handles company registrations. Clients receive direct attorney involvement, high availability, and clear guidance at every step. We serve both Israeli residents and international clients, and we handle the process in English for non-Hebrew-speaking clients.

Choosing the Right Structure: Israeli Company vs. Foreign Branch

Before registering, it is important to choose the correct legal structure. The two most common options for operating in Israel are:

• Israeli Private Limited Company (Ba"m): A new legal entity incorporated in Israel. Shareholders have limited liability. Suitable for startups, subsidiaries of foreign companies, joint ventures, and independent businesses.

• Foreign Company Registration (Branch): A foreign company that registers its existing entity with the Israeli Companies Registrar to operate in Israel. The foreign parent company retains full liability. See our Foreign Company Registration page for details.

The Company Registration Process in Israel

The registration process for an Israeli company involves several stages, which we handle on your behalf:

1. Preliminary consultation and structure planning: We review the intended business activity, ownership structure, and shareholder details to determine the optimal corporate structure.

2. Company name reservation: We search and reserve the desired company name with the Israeli Companies Registrar, verifying availability and compliance with naming rules.

3. Drafting Articles of Association: We draft customized articles of association (Takanonim) tailored to the company's business and shareholder requirements — not a generic template.

4. Filing with the Companies Registrar: We prepare and submit all required forms and documents to the Israeli Companies Registrar.

5. Certificate of Incorporation: Upon approval, the Registrar issues a Certificate of Incorporation and a company registration number (Mispar Havera).

6. Post-registration coordination: We coordinate registration with Israeli tax authorities (VAT, income tax, and where applicable, National Insurance), and opening of a corporate bank account.

Required Documents

The exact documents required depend on the ownership structure. The following are typically required:

• Identity documents of shareholders and directors: Israeli ID (Teudat Zehut) for Israeli residents, or passport copies for foreign nationals.

• Proposed company name: Including alternative names in case the first choice is unavailable.

• Articles of Association: Prepared by us based on your specific requirements.

• Details of share structure: Number of shares, share classes (if any), and allocation among shareholders.

• Director appointment details: Names, ID or passport numbers, addresses, and consent to serve as directors.

• Corporate shareholder documents (where applicable): If a corporate entity is a shareholder, its incorporation documents and an authorized signatory resolution are required.

Tax Registration & Post-Incorporation Steps

After incorporation, a company commencing business activity in Israel is typically required to register with the Israeli Tax Authority for VAT (Maam) and income tax, and in some cases with the National Insurance Institute (Bituach Leumi). We coordinate these registrations as part of our full-service offering.

Registering an Israeli Company as a Subsidiary of a Foreign Company

International companies frequently choose to establish an Israeli subsidiary (a new Ba"m incorporated in Israel) rather than registering their foreign entity as a branch. A subsidiary is a separate legal entity with limited liability, and it allows the foreign parent to limit its exposure to Israeli operations. We handle this process regularly for clients from the United States, Europe, and beyond.