Israel company structures: at a glance

Hawksford

Last updated: 12 May 2026 |

Middle East | Israel

Options for registering companies in Israel

Israel is a unitary State in the Middle East with a developed legal and regulatory framework for business operations. Corporate entities are governed by national company law and administered by the Israel Tax Authority.

Business entities are registered with the Registrar of Companies and subject to Israeli tax legislation. Foreign investment is permitted across most sectors, with capital contributions and profit repatriation governed by applicable law.

Israel offers international investors the following legal structures for establishing a local presence:

Limited liability company (Ltd.)

A limited liability company is a separate legal entity in which shareholders' liability is limited to their capital contribution.
This structure supports full commercial and revenue-generating operations.
A share capital of USD 1 is sufficient at incorporation.
The company is subject to corporate income tax at a standard rate of 23% and must maintain a registered office in Israel.
This structure provides liability separation and ongoing operational continuity.

Partnership

A partnership is an unincorporated business arrangement between two or more partners.
This structure is commonly used for professional or investment activities.
A capital contribution of USD 1 is sufficient to register a partnership.
Corporate income tax does not apply at the partnership level. Profits are taxed directly at the level of the partners.
Partners may have unlimited liability depending on the partnership structure.

Branch

A branch operates as an extension of a foreign parent company and does not have separate legal personality.
This structure supports the conduct of business activities in Israel under parent-company control.
A share capital of USD 1 is sufficient to register a branch.
Profits attributable to the branch are subject to corporate income tax at a rate of 23%.
Liabilities incurred by the branch attach directly to the foreign parent company.

Representative office

A representative office is not a separate legal entity and operates as a non-commercial presence.
This structure supports marketing, liaison and preparatory activities only.
A share capital of USD 1 is sufficient to establish a representative office.
Corporate income tax applies at a rate of 23% if the office engages in taxable activities.

Comparison of the common types of companies in Israel

Key information	Limited liability company (Ltd.)	Partnership	Branch office	Representative office
Commonly used for	All purposes	Professional services	Import and export	Marketing and research
Minimum capitalisation (US$)	$1	$1	$1	$1
Limited liability	Yes	Yes	No	No
Time to incorporate	Two months	Two months	Two months	Two months
Tax rate (CIT)	23%	N/A	23%	Not allowed to trade
Resident management	No, but recommended	Yes	Yes	Yes
Cost indication (in US$)	$8,000	$8,000	$8,000	$8,000

Any estimates published on Hawksford’s website set out indicative fees for entity formation, tax/VAT registration, a registered office address and estimated government filing fees. They do not include fees for additional services that may be required such as resident directors, licences for regulated activities, bank account setup, initial capital or other third-party charges. Actual setup costs can vary widely depending on the entity type, business activities, and structure. Terms and conditions apply. For a detailed, tailored quote, please contact us.

Updated on 12 May 2026

Information verified against Israeli corporations authority