Self-employed in Israel

 

 

Expats looking to work and be self-employed in Israel will need to bear in mind that the country is going through several political issues that have affected workers, as there are bombings and terrorist attacks. Despite the risks involved, patience is needed when it comes to registering a company in Israel where there are a lot of papers and requirements to be met and processing time will take 2 to 3 months before the company can get a permit that is renewed annually. A public company in Israel should have at least seven stockholders and should be registered at the Israeli's stock market. If it is a private company, one stockholder is required, and it should have a director. Foreign companies in Israel are considered as a branch of the subsidiary. 

Regardless of the business category, the process of setting up a business is still the same. A business permit should be obtained before a business can operate in Israel, and a lawyer will be the one who has the legal authority to process the permit. A Registrar's form and Memorandum of the Association are documents to be submitted for the issuance of a permit. These two documents should include a description of the company, its objectives, as well as the responsibilities of the director and shareholders. Other documents required are Articles of Association signed by initial shareholders and the directors' affidavit stating competence to serve. 

Apart from the National Insurance Institute, there are three other departments where a business should be registered in Israel - the Registrar of Companies, Income Tax Department and the Customs and VAT Department. These three may require upfront payment upon registration. Expats looking to be self-employed in the country are advised to be wary and alert, given the present dangerous state of the country.