The Israeli government uses all available means to develop entrepreneurship at the international level. In particular, agreements on a free trade zone were signed with the key states of the European Union, countries of Latin and Central America, including the United States. Besides, agreements on the avoidance of double taxation have been concluded with more than 40 countries.
The country takes an active part in industrial and technological cooperation between states. All this increases the level of competitiveness and attracts additional investment.
How to open a business in Israel for a foreigner?
Before moving on to a practical guide to registering a business in Israel, I would like to note several features of the business life of this country. In general, Israeli entrepreneurs adhere to fairly democratic behavior in the business culture. During official meetings and the signing of contracts, a friendly and calm atmosphere prevails. The openness and honesty of a person are appreciated.
Before negotiations, it is advisable to collect information about the partner’s company and unobtrusively share your knowledge during the conversation. Israeli businessmen are very ambitious and motivated people, so mentioning their activities will help show a serious approach to business and build trust.
Israel does not adhere to a strict dress code. However, for foreign entrepreneurs who are just starting to settle in the country, the minimum business style requirements must be observed. Many Israelis are very religious people, in particular when it comes to consuming kosher food. Therefore, when choosing a restaurant or dining at home, you need to take this point into account.
According to many reputable rating agencies, Israel has a leading position in the world in terms of return on investment and innovation potential. It is not surprising that the largest multinational companies such as Microsoft, Google, Apple, Facebook, Philips open their representative offices in this country and increase their financial investments. And there is an explanation for this.
Benefits of doing business in Israel
- Competitiveness and innovation potential.
- Highly educated and skilled workforce, as Israel’s universities provide quality knowledge.
- Use of modern technologies and scientific achievements.
- Economic flexibility and government support.
- Multinational and richness of culture.
In Israel, a foreigner can register a foreign company as a branch, subsidiary, or representative office, or open a new business. To do this, you will need to use the services of local professional law offices, consult with Israeli lawyers and accountants.
Procedure and cost of registering a company in Israel
Registration of the main documents of the company, certified by an Israeli attorney at the Israeli Ministry of Justice.
- Form 1 (application for company registration);
- the memorandum of the association (the goals and responsibilities of the shareholders are indicated);
- articles of association, signed by the owners of the firm, authenticated by a lawyer.
The charter must be in Hebrew, the rest of the documentation can be in English or Arabic. The cost of registering a company in Israel is 2,645 shekels (630 euros). The services of a lawyer will cost an average of 450-500 euros. After registration, the company will be assigned an identification code and issued a certificate.
Registration with the Income Tax and VAT Departments of the Israeli Ministry of Finance. These are two separate procedures. It is necessary to provide copies of all company registration documents and passports of the owners. The procedure is free, but it can take more than a month.
Registration with the National Insurance Institute. Registration of a social package for employees, including unemployment benefits, health insurance, and retirement benefits. It takes about 7 days.
As a result, the procedure for registering a business in Israel can take from one to three months.
Directions for business in Israel
The most common type of business in Israel for foreigners is small business. The main goal was to provide people with jobs. As a result, today in Israel there are special centers for the development of small businesses, where immigrants can receive advice and take special courses. Here is the link to the official agency MATI.
Among the promising areas for business in Israel, the medical industry, tourism, and the field of information technology stand out. In principle, the structure of the Israeli market is quite diverse, depending on the demand in a particular region, you can organize your business in the service sector. From plumbing repairs to legal advice.
As you know, Israel actively supports innovation and scientific development. Therefore, the road is open for talented entrepreneurs with interesting ideas. Besides, in 2015, it was announced the start of issuing innovative visas to foreigners to create startups on Israeli territory.
After all, you can buy a ready-made business in Israel and not rack your brains over opening something new.
Business visa to Israel
The most interesting thing is that in Israel there is no such thing as a business visa. Today, foreigners can visit the country for up to 90 days for no more than 6 months without a visa. This time is quite enough for registering a company and solving organizational issues. However, this option will not work as a way to immigrate to Israel.
Investing in the Israeli economy will prevent you from obtaining a residence permit. It remains to conduct business in Israel remotely, living in your own country. In this case, the help of Israeli business partners will be required. Alternatively, you can use another method of moving to Israel to obtain official status.