A guide on how to register your company in Israel, an Irish resident, or an Irish corporation
Article author -Tali Kessler, Adv.
This article is of interest for Irish business people, those who wish to establish a company in Israel, companies registered in Ireland but wish to establish a subsidiary in Israel, or lawyers who represent the above mentioned.
The Challenge:
An individual or a corporation, who wish to establish a company in Israel while residing outside of Israel, will face the problems:
- The Israeli Corporation Authority only accepts original documents with original signatures. Some of the documents must be submitted in Hebrew. The initial shareholders and directors of the Company must sign the papers and verify their signatures in front of the official authority. Such official authority can be an Israeli consul in Ireland or an Israeli lawyer. Sometimes, it is not that easy or viable to meet with the Israeli consul due to geographic distance. In addition, the consul will not verify a signature on documents written in Hebrew for an individual who does not understand and speak the Hebrew language.
- The Israeli Company must have an address in Israel to receive official documents. The address must be a physical address and not a postal address.
Two Solutions to the Challenge:
Establish a company
While trying to handle the Israeli bureaucracy, we found out that the most elegant and straightforward solution is to establish a company in the name of one of us (an Israeli lawyer) with a temporary and short trust for the client. Then, right after the incorporation of the Company, we transfer the shares to the client, dismiss the first director (the lawyer), and appoint the directors of the client.
Translate all the documents
A more complex option is to translate all the documents into English. The client will sign in front of the Israeli consul the documents, both in English and Hebrew. Then the consul will agree to verify the client’s signature on the documents in Hebrew as requested by The Israeli Corporation Authority.
Either way, the Company still must provide a physical address in Israel.
Technical issues that must be taken into consideration:
- The procedure for the incorporation of a company in Israel lasts between four days to two weeks.
- To incorporate a company with shareholders or directors who are Irish residents, you must attach a copy of their passports.
One of the essential documents for the incorporation of a company in Israel is the bylaws.
The bylaws set the rules for the operation and management of the Company (kind of a statute book for that operation and management), such as appointment and dismissal of directors, assembling the general assembly of shareholders or directors, the Company’s decision making procedure, etc.
These bylaws are significant:
For the internal relations of the Company (the internal relationships between the shareholders, the shareholders and the directors, and the directors themselves);
and
For the external relationships of the Company (the relationships between the Company and third parties);
We recommend that a knowledgeable Israeli lawyer will phrase the bylaws.
In Conclusion
It is defiantly possible to register an Israeli company owned by an Irish resident or an Irish corporation.
Our firm has extensive experience incorporating companies owned by non-residents (Irish residents) or Irish companies and providing legal services to these companies in their operation in Israel. You are most welcome to contact us.
Advocate Tali Kessler is a partner in Rechnitz, Kessler & Co., specializing in commercial and
Note:
This article provides general and preliminary information only. It should not be construed in any event as legal counseling and/or as a substitute for legal counseling.
The above should not be relied upon without consulting with a lawyer in the field before taking any action or making any decision. The above is accurate as of the date of its composition, and its accuracy may change from time to time.
Distribution and/or duplication and/or photocopying of this document and/or part thereof without permission are prohibited.
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