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Establishing and Registering a Company in Israel
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Establishing and Registering a Company in Israel
· By Adv. Reut Eliyahu, Notary
Open an Israeli Ltd (Ba"m) with the Companies Registrar - filed the day your signed documents arrive, usually registered on the next business day.
Incorporation, articles of association, Registrar filing and tax setup
We form Israeli companies for founders in Israel and abroad - most often from the United States, followed by India, China, the United Kingdom, France, Australia and Japan.
Establishing and registering a company in Israel is one of the most common steps taken by entrepreneurs, investors and businesses that want to operate in the Israeli market. Whether you are an Israeli resident, a foreign national, or an international company building a local presence, company registration runs through the Israeli Companies Registrar (Rasham HaHavarot) at the Israeli Corporations Authority, followed by registration with the Israeli tax authorities.
The most common structure for a new business in Israel is a private company limited by shares, known in Hebrew as a Ba"m - short for Be'eravon Mugbal, "with limited liability". It is the Israeli equivalent of an LLC or a Ltd. in other jurisdictions: a separate legal entity, with limited liability for its shareholders, clear corporate governance and the flexibility to fit anything from a one-person consultancy to the subsidiary of an international group.
Key Facts
⏱
Same day We file the day your signed documents arrive
📅
1-3 business days Typical registration time at the Registrar
🏛
ILS 2,559 Government registration fee, filed online
👤
One shareholder Is enough to form a company (Section 3)
💡 This page covers forming a new Israeli company (Ba"m). If you represent a company incorporated outside Israel and want to register that company itself to operate here, see our page on registering a foreign company in Israel.
In short: how do you register a company in Israel?
You file an online application with the Israeli Companies Registrar, which registers the company and issues a certificate of incorporation - under Sections 8 and 10 of the Companies Law, 5759-1999.
Choose the name: up to three names in order of preference, ending in "Ba"m" or "Ltd".
Draft the articles: share capital, rights and governance rules.
Sign the declarations: first shareholders and first directors, approved online or authenticated by a lawyer.
File and pay: ILS 2,559 online, then register for VAT and income tax.
We file the day your signed documents arrive, and the company is usually registered within 1-3 business days. Schedule a free consultation →
Company registration in Israel: key facts for 2026
Legal form
Private company limited by shares - Ba"m / Ltd (Companies Law, 5759-1999)
Minimum owners
One shareholder (Section 3), who may also be the only director
Foreign ownership
Up to 100%. No Israeli shareholder, director or ID holder required
Share capital
No minimum amount to deposit before registration
How you file
Online only, since 27 June 2024
Government fee
ILS 2,559 registration · annual fee ILS 1,338 by 31 March or ILS 1,777 after
Registration time
1-3 business days after filing, usually the next business day
Company number
Nine digits, issued with the certificate of incorporation
Tax
Corporate tax 23% · VAT 18%
Choosing the Structure
Israeli company or foreign branch: choosing the structure
Before registering, it is important to choose the correct legal structure. The two most common options for operating in Israel are:
✅ Israeli private company (Ba"m)
A new legal entity incorporated in Israel. Under Section 4 of the Companies Law a company is a legal person capable of any right, duty and act, so its debts are its own and the shareholders' liability is limited to their shares. Suitable for startups, subsidiaries of foreign companies, joint ventures and independent businesses.
📜 Foreign company registration (branch)
An existing company incorporated abroad registers itself with the Israeli Companies Registrar in order to operate here. No new entity is created, and the foreign company remains fully liable for its Israeli activity. See our foreign company registration page.
For most founders the answer is a Ba"m, because it separates the business from its owners. Section 2 of the Companies Law allows any person to found a company, provided none of its purposes is unlawful, and Section 3 allows a company to have a single shareholder. A one-person company is therefore a normal, fully recognised structure in Israel, not a workaround.
Why Our Firm
Why clients choose Eliyahu & Co.
Eliyahu & Co. Law Office is a civil, commercial and real estate law firm representing entrepreneurs, investors and companies in Israel and internationally. Adv. Reut Eliyahu has practised law since 2007. We provide a full legal service for forming a company in Israel - from the first consultation and the name check, through incorporation and articles of association, to shareholder agreements and the steps that follow registration.
Adv. Reut Eliyahu personally handles company registrations. Clients receive direct attorney involvement, high availability and clear guidance at every step. We serve Israeli residents and international clients alike, and we run the whole process in English for clients who do not speak Hebrew. As a licensed notary, the firm also certifies translations and signatures in-house when a document needs it.
⚖Full-service firm
Corporate, commercial and real estate law for Israeli and international clients.
👩⚖️Personal oversight
Your file is handled by Adv. Reut Eliyahu, not passed between desks.
⚡Fast filing
Documents for signature within a day, filing the day they come back.
📋Full compliance
Companies Registrar, VAT, income tax and National Insurance coordinated.
Ready to open your company in Israel?
Tell us who the shareholders are and what the company will do. We will reply with a checklist, a timeline and a fixed quote.
Company formation in Israel involves six stages, and we handle each of them on your behalf. Since 27 June 2024 every application to the Companies Registrar is filed online, through the Israeli Corporations Authority's system, which is one reason the registration itself is now fast.
1
Consultation and structure planning
We review the planned activity, who the shareholders and directors will be, and how the shares should be divided, and confirm that a Ba"m is the right vehicle.
2
Name check
We check the proposed name against the register. The application lists up to three names in order of preference, and the name must end in "Ba"m" or "Ltd" (Section 26) and must not be misleading (Section 27).
3
Drafting the articles of association
We draft articles (takanon) tailored to the company's business and to what the shareholders agreed - share classes, transfer rules, board appointments - rather than a generic template.
4
Signing the declarations
We send the documents for signature within a day: the application, the declaration of the first shareholders and the declaration of the first directors. Israeli citizens can approve them online; for anyone else, the signatures are authenticated by a lawyer and the documents are scanned and attached.
5
Filing and certificate of incorporation
We file online and pay the fee on the day the signed documents arrive. Once the Registrar is satisfied that the requirements are met, it registers the company and issues a certificate of incorporation with a nine-digit company number (Section 10).
6
Tax registration and next steps
We coordinate registration with the Israel Tax Authority for VAT and income tax, and with National Insurance where the company will employ staff, and support the opening of a corporate bank account.
Timeline
How long it takes to register an Israeli company
The registration itself takes one to three business days. We send the documents for signature within a day of your first call, file with the Companies Registrar on the day the signed documents come back, and the company is usually registered on the next business day.
The one variable is how quickly the shareholders and directors sign, and we prepare everything so that signing is the only thing left for them to do.
From our practice
A foreign resident asked us to open an Israeli company for him. He received the documents from us the same day, signed them and sent them back, and the next day the company was registered.
A single shareholder who is also the sole director is the simplest case. Several shareholders, a corporate shareholder, or shareholders abroad add signatures to collect, not extra stages at the Registrar, and we plan the signing order so no one waits for anyone else.
The requirements are short. To open a company in Israel you need four core documents: the registration application, the articles of association, a declaration of the first shareholders and a declaration of the first directors. Around them sit the identity documents of every shareholder and director and, where a shareholder is itself a company, that company's own records. We prepare all of them for you.
Registration applicationFiled online on the Registrar's prescribed form (Section 8), listing up to three names in order of preference.
Articles of associationPrepared by us to match the business and what the shareholders agreed.
Declaration of the first shareholdersNames, ID or passport numbers, addresses and the number of shares each one takes.
Declaration of the first directorsEach director's details and consent to serve, signed personally.
Identity documentsIsraeli ID (Teudat Zehut) for Israeli citizens, passport copies for everyone else.
Corporate shareholder documents (where applicable)If a company holds shares, its incorporation documents and a resolution naming who signs on its behalf.
A detail that matters for foreign shareholders: the Registrar's fully automatic online service accepts only shareholders and directors who are Israeli citizens. When any of them is not, the application is still filed online, but with scanned documents authenticated by a lawyer attached. That is the route we use for clients abroad, and it does not slow the registration down.
A foreigner can own and run an Israeli company. There is no requirement that shareholders or directors be Israeli citizens or residents, and none that a director hold an Israeli ID. The Registrar's conditions are different: shareholders and directors must not be citizens of an enemy state, must not have been declared restricted in their means or bankrupt, and must not be registered as directors or shareholders of a company that is in breach of the law.
What a foreigner usually cannot do is trade in Israel as a sole proprietor. Registering as an osek murshe or osek patur (a licensed or exempt dealer for VAT) is generally tied to residence in Israel, which is why a company is the practical route for a non-resident who wants to invoice Israeli customers. The company itself is an Israeli resident for tax, pays corporate tax of 23% on its profits in 2026, and charges VAT at 18% where its sales are taxable.
Being allowed to own a company is a separate question from being allowed to work in it. Shareholding and directorship do not require a visa, but working physically in Israel may, and we flag that early so it does not surprise you later.
🇺🇸 Founders from the United States
US founders are the largest group we work with. The Israeli side is simple: the declarations are signed, authenticated and sent back, and the company is registered. The US side needs planning before the first share is issued. A US person who owns an Israeli company may have annual US reporting to file on it, and the choice between owning it personally or through a US LLC or corporation changes the tax result. We coordinate with your US adviser before incorporation, and our US line, +1 (310) 735-4210, is answered in US business hours.
🇬🇧 Founders from the United Kingdom
For British founders, an Israeli Ba"m will feel familiar: it works much like a private company limited by shares at Companies House, with articles, a share register and directors. The differences are in the procedure. Changes of directors and shareholders are reported to the Israeli Registrar, and the annual report filed there plays much the same role as the confirmation statement at Companies House. We explain each document in English before you sign it, handle the Hebrew side of the filing, and coordinate with your UK accountant on how the company's profits will be taxed.
🇩🇪 Founders from Germany and the EU
German founders often search for the Israeli Handelsregister. The equivalent is the Companies Registrar at the Israeli Corporations Authority, and an Israeli Ba"m is the counterpart of a GmbH, with one practical difference: there is no minimum share capital to deposit before registration. Where a German or other EU company will hold the shares, we prepare the shareholder resolution and the signatory documents in a form that its own notary can authenticate, so the Israeli registration and the European paperwork move together.
🇮🇳 Founders from India, China and Japan
India, China and Japan are among the countries we register companies for most often. When the shareholder is a company rather than an individual, the key documents are the parent's incorporation certificate and a board resolution authorising the investment and naming who signs. India, China and Japan are all parties to the Apostille Convention, which keeps authentication simple. We check the documents before they are signed, because a name spelled differently in two documents is the most common reason for a query from the Registrar.
Subsidiaries
Setting up an Israeli subsidiary of a foreign company
International companies frequently choose to establish an Israeli subsidiary - a new Ba"m incorporated in Israel - rather than registering the foreign entity itself as a branch. A subsidiary is a separate legal entity with limited liability, so the parent limits its exposure to its investment in the Israeli company. We handle this regularly for clients from the United States, Europe and beyond.
Israeli subsidiary compared with registering the foreign company as a branch
Israeli subsidiary (Ba"m)
Foreign company (branch)
Legal status
A new Israeli company
The foreign company itself
Liability
Limited to the subsidiary's assets
The foreign company is fully liable
Documents from abroad
Parent's incorporation documents and a board resolution, authenticated
Apostilled corporate documents with notarized Hebrew translations
Government fee
ILS 2,559 online
The same fee
Typical use
Local team, Israeli lease, ring-fenced risk
Selling into Israel under one corporate identity
The deciding question is usually whether the Israeli activity carries risk the parent does not want on its own balance sheet. Employees, a lease and supplier contracts point to a subsidiary. Occasional sales to Israeli customers may point to a branch. Once a subsidiary exists, the relationship with the parent should be written down - an intercompany agreement, services pricing and who signs for whom - and our commercial contracts practice drafts those documents alongside the registration.
After Registration
Tax registration and first steps after incorporation
Registration with the Companies Registrar creates the company, but it cannot issue a tax invoice yet. A company starting business in Israel registers with the Israel Tax Authority for VAT and income tax, and opens an employer's deductions file with the Tax Authority and National Insurance (Bituach Leumi) once it employs staff. We coordinate these registrations as part of the service, together with the company's accountant.
Three further steps follow almost every registration. The company opens a corporate bank account, where Israeli banks apply KYC checks to the shareholders and the source of funds, and we prepare the documents the bank asks for. Where there are two or more shareholders, a shareholder agreement sets voting, dividends, transfer restrictions and exit terms. And every year the company files an annual report with the Registrar and pays the annual fee. For ongoing matters we provide legal counsel to Israeli companies after registration.
Cost & Fees
Government fees and costs in 2026
Registering an Israeli company costs a government fee of ILS 2,559, paid to the Companies Registrar with the online application. From the year after registration the company also pays an annual fee: ILS 1,338 for 2026 if paid by 31 March, or ILS 1,777 from 1 April. Legal fees are separate and agreed in advance.
Both fees are set in the Companies Regulations (Fees), 5761-2001 (Hebrew text) under Section 9 of the Companies Law, and are updated every January. A company that does not pay the annual fee, or does not file its annual report, can be recorded as a company in breach of the law - which, among other things, blocks its shareholders and directors from registering new companies.
🏛Registration fee
A fixed government fee, paid to the Companies Registrar with the online application.
📆Annual fee
ILS 1,338 for 2026 by 31 March, ILS 1,777 from 1 April.
⚖Legal fees
One fixed fee for the whole service, agreed in writing before we begin.
💬Exact quote
Send us the ownership structure and receive an itemized quote within one business day.
The Israeli company register is kept by the Companies Registrar at the Israeli Corporations Authority. Anyone can look up a company by name or by its nine-digit company registration number: basic details are free, and a full company extract is available for a fee. The Ministry of Justice also publishes the database of registered companies, updated daily.
The company number (mispar hevra, often written "ח.פ") is the number banks, suppliers and foreign counterparties ask for, and it also identifies the company with the tax authorities. The basic search shows whether a company is active and whether it has been recorded as a company in breach of the law. The full extract (nesach hevra) adds shareholders, directors, share capital and registered charges.
Many people reach this page looking for the register in English. The extract itself is issued in Hebrew. When you need it for a bank's KYC file, a due diligence report or an authority abroad, we order it, translate it into English and, where required, certify the translation as a notary.
LL.B & MBA · Licensed Notary · Registered Arbitrator · Member of the Israel Bar since 2007
"The company you register today is the one you will sell, fund or hand over later. The articles and the share structure are worth getting right on day one."
Adv. Reut Eliyahu founded Eliyahu & Co. with a clear principle: every client should have direct access to the attorney handling the file, not only to office staff. She has registered companies in Israel for Israeli entrepreneurs, foreign investors, startups, subsidiaries of international groups and individuals entering the Israeli market for the first time.
The firm's approach goes beyond the paperwork: understanding each client's business, advising on the right structure, and building the company on articles that reflect what the shareholders actually agreed. The work draws directly on the Companies Law, 5759-1999 (Hebrew text) and the Registrar's practice, and extends to selling Israeli shares when an owner later exits.
Adv. Eliyahu holds an LL.B and an MBA, is a licensed notary and a registered arbitrator, and serves clients in English, Hebrew and Spanish.
⚖ Israel Bar Association🎓 LL.B & MBA🏛 Licensed Notary📝 Registered Arbitrator🌏 English · Hebrew · Español
Who We Work With
Companies and entrepreneurs we work with
We work with a wide range of clients - from first-time entrepreneurs opening their first company to international groups establishing Israeli subsidiaries.
🚀Startups & Tech
Israeli and international founders forming technology companies, R&D entities and innovation-driven businesses.
🌐International Subsidiaries
Foreign companies establishing an Israeli Ba"m to operate in the Israeli market with limited liability.
🏗️Real Estate & Investment
Investors and developers forming holding companies and property vehicles, often alongside a property purchase in Israel.
💼Professional Services
Consultants and service providers moving their business into a company to structure it and limit personal liability.
The stars in this section are the rating on the firm's Google Business Profile. The rating at the top of the page is the visitor rating for this page only. They are two different measures.
FAQ
Frequently Asked Questions
Answers to the questions we are asked most often about forming a company in Israel.
You file an online application with the Israeli Companies Registrar on the prescribed form (Section 8 of the Companies Law, 5759-1999), attaching the articles of association and the declarations of the first shareholders and first directors, and pay the fee. When the Registrar is satisfied the requirements are met, it registers the company and issues a certificate of incorporation (Section 10). We handle the whole process on your behalf.
Usually one to three business days. We send the documents for signature within a day of your first call, file on the day the signed documents come back, and the company is usually registered on the next business day.
The government registration fee is ILS 2,559 for an online filing. From the year after registration the company pays an annual fee, which for 2026 is ILS 1,338 if paid by 31 March and ILS 1,777 from 1 April. Legal fees are separate and are agreed in advance as one fixed fee.
Yes. Shareholders and directors do not need to be Israeli citizens or residents. The Registrar's conditions are that they are not citizens of an enemy state, have not been declared restricted in their means or bankrupt, and are not registered as directors or shareholders of a company in breach of the law. Where they are not Israeli citizens, the online application is filed with scanned documents authenticated by a lawyer.
No. The Companies Law does not require a director who is an Israeli citizen, resident or ID holder. A company may have a single shareholder (Section 3), and that shareholder may also be its only director. The company does need an address registered with the Registrar for official mail, and an accountant for its tax filings; we can help with both.
Yes. The application is filed online, and the declarations are signed wherever the shareholders and directors are. We send the documents, explain what to sign, and file the day they come back, so no one needs to travel to Israel.
Israel has no LLC as such. The equivalent is the Ba"m - short for Be'eravon Mugbal, "with limited liability" - a private company limited by shares, and its name must end in "Ba"m" or "Ltd" (Section 26 of the Companies Law). It plays the role of an LLC or a Ltd. elsewhere: a separate legal person whose shareholders are liable only up to their shares. For US tax purposes it is not automatically treated like a US LLC, which is why US founders should involve their US adviser before incorporation.
It is the document the Companies Registrar issues when it registers the company, under Section 10 of the Companies Law. It shows the company's name, its nine-digit company number and the date of registration. Banks, the tax authorities and foreign counterparties ask for it, and we can provide a certified English translation.
The register is kept by the Companies Registrar at the Israeli Corporations Authority. Anyone can search it by company name or nine-digit company number: basic details are free, and a full company extract is available for a fee. The extract, which shows shareholders, directors, share capital and charges, is issued in Hebrew; we can order it and provide a certified English translation. See looking up an Israeli company above.
An Israeli Ba"m is a new legal entity incorporated in Israel, with its own legal personality under Section 4 of the Companies Law. Registering a foreign company means the existing company from abroad registers itself to operate here: no new entity is created, and the foreign company remains fully liable for its Israeli activity. See our page on Israeli branch registration for foreign companies.
Yes. A foreign company can be the sole shareholder of an Israeli Ba"m. Instead of passports, the documents are the parent's incorporation certificate and a board resolution authorising the investment and naming who signs on its behalf. The subsidiary is a separate Israeli company, so the parent's exposure is limited to its investment.
Each year the company files an annual report with the Companies Registrar and pays the annual fee, reports changes such as new directors or share transfers, keeps its registers up to date, and files its financial statements and tax returns. A company that stops paying or reporting can be recorded as a company in breach of the law.
It is not required for registration, but it is strongly recommended when there are two or more shareholders. It governs voting, dividends, transfer restrictions and exit terms, and prevents most of the disputes we later see between partners. We draft tailored shareholder agreements as part of the service.
Sun-Thu 08:00-19:00 · Fri 08:00-13:00 · By phone, Zoom or fully remote
Contact Us
Get in touch - free first consultation
Call or message us directly, or fill in the form and we will get back to you within one business day. The first consultation is free and without obligation.
Your Israeli company, registered by a lawyer who handles it personally.
Name check, articles of association, Registrar filing and tax setup - filed the day your signed documents arrive, usually registered within 1-3 business days. Free first consultation, no obligation.
