Israel

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DOING BUSINESS

 


Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

Israel is divided into three development zones and public or private aids depend on the area chosen by the investor. Two bodies are competent to help investors: the Investment Authority which depends on the Treasury and the Investment Center, depending on the Department of Industry and Trade. The first one provides a concrete help to companies with investment projects and the second approves foreign investments and decides which public aids they can benefit from. The first zone is located in the North of the country ( the most favoured zone), Galilee, Golan, Jerusalem (for high technology industries), Beer Sheva, South Neguev and Eilat. The second is located in Jerusalem (for all the other industries), St Jean of Acre, Kyriat Malachi, Kyriat Gat and Yokneam. The last one covers the coastal plain and the centre of the country.
The Investment Promotion Centre, a subdivision of the Ministry of Industry & Trade, provides information, assistance and support for foreign investment matters.

 

Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
The Public Limited Company. Minimum 7 partners. No minimum capital. Liability is limited to the amount contributed. 1% when capital is
0.6% when capital is contained between NIS 140,000 and 470,000.
0.1% when capital is > NIS 470,000.
Yes
The Private Limited ompany Minimum 2 partners. Maximum 50 partners. No minimum capital. Liability is limited to the amount contributed. 1% when capital is
0.6% when capital is contained between NIS 140,000 and 470,000.
0.1% when capital is > NIS 470,000
No
General Partnership Maximum 20 partners. No minimum capital. Liability is unlimited for debts and obligations of the company. 1% when capital is
0.6% when capital is contained between NIS 140,000 and 470.000.
0.1 % when capital is > NIS 470,000
No
Limited Partnership. Maximum 20 partners. No minimum capital. At least one partner must have an unlimited liability. Liability of other partners is limited to the amount contributed. 1% when capital is
0.6% when capital is contained between NIS 140,000 and 470,000.
0.1% when capital is > NIS 470,000
No

Registration and licensing procedures
Companies must register with the Trade Register. In general, documents must be drawn up in Hebrew and contain a financial analysis in Israel currency: Shekel. The registration procedure is rather quick, it only takes a few days to be registered.

Foreign exchange control
There is no currency exchange control in Israel. Free repatriation of capital and profits is carried out under reserve of the authorization from the Bank of Israel.  


Foreign Direct Investment inflows in Israel

FDI inflows 2003 2004 2005 World rank (*)
2005
FDI inflows (USD million) 3 941 1 753 5 587 63/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.

 

Last modified in 2006 - ongoing update
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