Israel is a dynamic and rapidly growing country with a thriving business landscape. Starting a business in Israel can be a rewarding and profitable venture. However, like any other country, there are legal and administrative processes that need to be followed to ensure that your business is properly registered and compliant with the law. In this article, we will take you through the steps you need to follow to register a business in Israel.
Table of Contents
Step 1: Choose your business structure
The first step in registering your business in Israel is to choose your business structure. Israel recognizes several types of business structures, including a sole proprietorship, a partnership, a limited liability company (LLC), and a corporation.
A sole proprietorship is the simplest form of business, and it is owned and operated by a single individual. A partnership involves two or more individuals who share ownership and responsibilities for the business. An LLC is a separate legal entity that provides limited liability protection to its owners, while a corporation is a separate legal entity that is owned by shareholders.
Each business structure has its own advantages and disadvantages, so it is important to choose the structure that best suits your business needs.
Step 2: Register your business name
Once you have chosen your business structure, you need to register your business name. In Israel, you can register your business name with the Israeli Registrar of Companies. Your business name must be unique, and it cannot be similar to an existing business name.
Step 3: Obtain a tax identification number
In Israel, every business must have a tax identification number (TIN). You can obtain a TIN from the Israeli Tax Authority by completing an application form.
Step 4: Register for VAT
If your business is expected to generate revenue of more than NIS 99,000 per year, you will need to register for Value Added Tax (VAT) with the Israeli Tax Authority. VAT is a tax that is added to the price of goods and services, and it is collected by businesses on behalf of the government.
Step 5: Register for National Insurance
In Israel, every business owner and employee must be registered with the National Insurance Institute. You can register for National Insurance online or in person.
Step 6: Open a bank account
Once you have obtained your TIN and registered for VAT and National Insurance, you need to open a bank account for your business. This will allow you to receive payments from customers and pay your business expenses.
Step 7: Register with the Israeli Registrar of Companies
The final step in registering your business in Israel is to register with the Israeli Registrar of Companies. This involves submitting the necessary documents and paying the registration fee. Once your business is registered, you will receive a certificate of incorporation.
In conclusion, registering a business in Israel can be a complex and time-consuming process. However, by following the steps outlined in this article, you can ensure that your business is properly registered and compliant with the law. If you need help with the legal aspects of starting a business in Israel, Generis Global can help you. Contact us to find out how we can assist you with your business journey in Israel.