Types of Companies in Israel

With new policies implemented in the private sector, the government in Israel aims to attract foreign capital and promote the joint collaborations for the future development of the economy. Foreign investors are welcomed in Israel and directed to choose from varied forms of businesses available. One can establish a limited liability company, a partnership, a branch of a foreign company or a private enterprise. In document issues and related aspects for company incorporation, we suggest you to ask for support and guidance from our specialists in company formation in Israel.

Limited liability company in Israel

A limited liability company is a common and preferred business entity by entrepreneurs in Israel. One can set up an LLC in Israel in compliance with the Companies Law which stipulates that such entity is allowed to have even a sole shareholder. As for LLCs registered with two or more shareholders, each of them has limited liability limited to the price of the shares they subscribed for.

Partnership in Israel

Foreign entrepreneurs can set up partnerships in Israel and register them with the local Registrar of Partnerships. The main condition is to have a representative from Israel who is in charge with varied legal aspects on the behalf of the partnership with overseas partners. We mention that a partnership with individuals from different nationalities can be set up observing the same requirements as for registering an Israeli partnership.

Private company in Israel

Private companies in Israel can be registered if three of the main requirements are fulfilled, such as:

• at the General Meeting, the Articles of Association and related aspects regarding the board of directors must be recorded;
• the board of managers must have at least one director in charge of elaborating the companies’ policies;
• a general manager must be appointed for the daily activities and operations in the company.

A private company in Israel is not subject to an annual financial report made publicly. For other information about how to incorporate a company in Israel, including details about the necessary documents, you may address to our company formation agents in Israel.

Offshore in Israel

Israel has no offshore company regime. A company owned from abroad can be set up outside the jurisdiction of the operations and can be incorporated for lower costs. Besides that, a company incorporated in Israel is Israeli tax-resident (23% corporate tax in 2026), with standard paperwork, and the details about the owners (shareholders) are recorded in the public Companies Register.

We invite you to get in touch with our team of company formation consultants in Israel for comprehensive information and assistance in company incorporation in Israel.