How To Start A Business In Israel In 2022 | Step By Step Guide


Israel IsraelIsrael is home to more than 6000 startups. An individual in Israel can start a business under two classifications, depending on the annual business income: Osek Patur and Osek Murshe. Osek Patur is good for small businesses and Oser Murshe is good for big businesses.

How to start your business in Israel as a foreign citizen

Step 1: Business idea and validation

If you want to start your business in Israel as a foreign citizen, you need to come up with a business idea. Once you’ve come up with a business idea, you need validation. A mistake in this step could affect your business in the long run.

Step 2: Appoint a guarantor

A foreign citizen must appoint a guarantor for tax purposes to establish a business in Israel. This guarantor must be an Israeli citizen.

Step 3: Registering a company in Israel

The most common type of business organisation that a foreigner can establish is Limited Liability Company. The company needs to be registered with The Registrar of Companies (Ministry of Justice) and the Tax Authorities (Ministry of Finance). Corporate documents in English will be accepted by the Registrar.

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Which documents are required to register a business organisation in Israel?

  • Form No. 1 of the Companies Registrar. This is the application form to register a company.
  • Memorandum of Association
  • Articles of Association
  • Registration fees: 2,645 NIS (around 650 USD)

Step 4: Obtain a Certificate of Incorporation

Once the registration is complete, you need to obtain a Certificate of Incorporation.

 The Registrar issues the business a Certificate of Incorporation and a nine-digit company number.

Step 5: Open a Bank account

Open a bank account in the name of the business. It is an important step to run a business in Israel. Most Israeli banks offer “non-resident accounts” to foreigners who live in other countries.

Step 6: Register with the Israel Tax Authority

After the company has been registered with the Registrar, it must be registered with the Israel Tax Authority. Registration can be done using Form 4436, where you need to include details of the company.

After completing all the steps, you can easily start the business. What is your business idea? Share your answer in the comment section below.



Roshan Amiri is an advocate for the truth. He believes that it's important to speak out and fight for what's right, no matter what the cost. Amiri has dedicated his life to fighting for social justice and creating a better future for all.

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