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flag Israel Israel: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Public limited company (business corporation)
Number of partners: minimum 2 partners
Capital (max/min): no minimum capital
Shareholders and liability: liability limited to the amount of contributions in share capital.
Limited Liability Private Company (SARL)
Number of partners: No minimum
Capital (max/min): no minimum capital.
Shareholders and liability: liability limited to the amount of contributions in share capital.
General Partnership
Number of partners: minimum 2 partners in partnership.
Capital (max/min): no minimum capital.
Shareholders and liability: unlimited liability for debts and obligations of the company.
The Competent Organization
Registrar of Companies, Ministry of Justice.
 
Setting Up a Company Israel Middle East & North Africa
Procedures (number) 5.0 8.0
Time (days) 21.0 23.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Israel.
Israelbusiness

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The Active Population in Figures

201120122013
Labor force 3,492,0003,269,0003,493,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -57.10%57.30%
Men activity rate 62.50%62.40%62.40%
Women activity rate 51.90%52.50%52.50%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 15.2%
Real Estate, Renting and Business Activities 14.0%
Education 12.6%
Health and Social Work 9.9%
Transport and Storage 6.3%
Construction 5.4%
Hotels and Restaurants 4.7%
Agriculture, Hunting and Forestry 1.7%
Households with Employed Persons 1.7%
Electricity, Gas and Water Supply 0.7%
Mining and Quarrying 0.2%

Source: International Labor Organization (ILO)

 
For Further Statistics
Bureau of statistics
For Further Information About the Labor Market
Labor market database

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Working Conditions

Legal Weekly Duration
Maximum 45 hours per week
Retirement Age
From 60 to 65 years for women and from 65 to 70 years for men.
Working Contracts
The employment contract is drawn up through legal provisions and to a lesser extent through collective agreements. The employment contract can be written or oral. It can be for indefinite, definite or temporary duration.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
ILS 4,300 per month (source: ILO, 2014).
Average Wage
Gross average monthly wage of men: ILS 9,720 (source: ILO, 2010);
Gross average monthly wage of women: ILS 6,386 (source: ILO, 2010).
Social contributions
Social Security Contributions Paid By Employers: 6.5%
Social Security Contributions Paid By Employees: 9.70%

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Social Partners

Social Dialogue and Involvement of Social Partners
Most of the unions belong to Histadrut (General Federation of Labor in Israel), or to a much smaller rival federation, the Histadrut Haovdim Haleumit (the National Labor Federation). Negotiations are carried out at the national and sectoral level.
Unions
Histadrut
Unionization Rate
Unionization rate in percentage of the labor market population in Israel : 15% in 2014.
Labor Regulation Bodies
Ministry of Industry, Trade and Labor

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Last Updates: December 2014