Establishing an Israeli Branch of a Foreign Company
Our office specializes in obtaining permits and work visas for foreign experts seeking to work in Israel, and is considered a leading boutique office in the field. The office is consistently ranked in the BDI and DUNS 100 directories. In recent years, we have witnessed an increase in international companies conducting business in Israel and participating in both national and private projects.
Our office offers services to a wide range of international companies in various sectors, including automotive, high-tech, infrastructure, transportation, industry, ports, energy, maritime engineering, biotechnology, medicine, security industries, and more.
In order for foreign companies to conduct business in Israel legally, they must be registered in the Israeli Companies Register, establish a file, and register with the Israeli tax authorities (VAT, income tax, national insurance).
Registration as an Off-Shore Company
A foreign company which is registered in Israel is essentially an extension of the foreign company abroad. To register a foreign company in Israel, the foreign company must be registered or incorporated in accordance with the laws of the jurisdiction where it is incorporated.
The registration process for a foreign company is complex and involves the submission of registration documents from the foreign entity, the appointment of an authorized Israeli signatory to act on behalf of the company in Israel, and the appointment of an Israeli resident responsible for receiving notices from the courts. Additionally, the company must provide an address in Israel for physical mail receipt.
Proper and accurate registration of a foreign company in the Companies Register is crucial to enable the foreign company to conduct regular business activities in Israel, including opening a bank account, a complex and lengthy process in itself.
Relevant legal instructions can be found in the Companies Law, 1999.
Appointment of an Israeli Representative for Tax Purposes
According to Section 60 of the Value Added Tax Law, 1975, a registered foreign company in Israel is required to appoint an Israeli representative for the purpose of the income tax regulations. The Israeli representative must be legally authorized by the company and is responsible for submitting reports and documents to the tax authorities.
The VAT Law states that the company must notify the VAT administrator of the details of the Israeli representative within 30 days of commencing business activity in Israel. The Israeli representative can either be an Israeli citizen residing in Israel or, alternatively, an Israeli entity registered in Israel.
Our office can assist in establishing a foreign company and appointing Israeli representatives efficiently and quickly before various authorities.
Opening a Bank Account in Israel
Our office can assist in opening bank accounts for foreign companies in Israel, which have been duly registered as “Off-Shore Companies” in the Companies Register. The process of opening a bank account is lengthy and complex and is expected to take between 3-6 months until the anticipated account opening. This process requires the submission of many documents, and often, the company is required to provide additional documents that were not requested previously, all in accordance with the bank’s discretion. From our experience, each bank has different requirements and regulations, which is why it is crucial to approach a bank with quick and professional customer service familiar with the account opening process and the documents required by the foreign company.
Our office has extensive experience in opening bank accounts, and therefore, we approach banks and branches that provide the most efficient and fastest service, taking into account the complexity of the process.
For any further questions, please feel free to contact us.
RECOMMENDATIONS
Sharon Eyal - Sharon Eyal- CEO, Haifa Chemicals South
We have been working with the law firm of Iftach Hanan & Co. for some time in the field of applying for foreign expert work licenses in Israel. As a leading company in our field, we carry out many projects that require the purchase of advanced machinery and upgrading the production system in our factories on a regular basis, while utilizing the services of foreign experts.
From the moment we turned to Adv. Iftach Hanan, we realized that we were already in a different place- a sense of service, professionalism, availability, and providing an efficient and quick response to any problem, issuing work permits on tight schedules, and doing everything possible for the sake of the project. Real professionals, great job!
Erez Ohayon - Indirect property procurement, Elbit Systems
Elbit Systems - Cyclone Ltd., is engaged in the production and design of aerospace parts for the military and civilian market for the best aircraft manufacturers in the United States, and most of its activities are for defense exports.
I would like to thank you and the firm's staff for their fruitful cooperation, and for your thorough, efficient and professional service.
Your guidance in the process of applying for visas has proven itself, particularly against the background of COVID-19 and in light of the complexities involved both with the suppliers abroad and with the authorities in Israel. I enjoy working with you, especially because of the courtesy and sense of partnership for which I am grateful.
Yossi Eli - VP of Management and Resources, HCT
For about two years, our company has been using the services of the Iftach Hanan & Co. law firm for the purpose of applying for long-term and short-term foreign expert work permits.
In light of the complexity that currently exists with the authorities abroad and in Israel regarding the issuing of work permits and the immigration of foreign experts, Iftach Hanan's services have proven themselves more than once to be professional, courteous and fast.
Therefore, I would like to thank Iftach and his dedicated employees for the availability, personal attention, and accompanying services pertaining to the above.
Keren Lougassi - Projects Operations, Coral
We at Coral Energy provide services to a large number of Israeli and international companies.
In recent years, we have been working together with the Iftach Hanan & Co. law firm, which specializes in applying for work permits and work visas for foreign experts who wish to work in Israel.
Adv. Iftach Hanan and the staff in his firm are well versed in immigration law to Israel and in the field of commercial immigration in particular. Their services include responsiveness at any hour of the day, efficient and fast work, and quick and efficient problem-solving.
Throughout our time working together, Iftach and his team have proven their integrity and reliability, professionalism, willingness to work non-routine hours, and impressive results.
We strongly recommend that you contact the Iftach Hanan & Co. law firm when dealing with immigration issues and applying for work permits and work visas for foreign experts and workers.
