Country Trading Profiles Israel

Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Public limited company (business corporation) no minimum capital	minimum 2 partners liability limited to the amount of contributions.
Limited Liability Private Company (SARL) no minimum capital.	No minimum liability limited to the amount of contributions.
General Partnership no minimum capital.	minimum 2 partners. unlimited liability for debts and obligations of the company.

Business setup procedures

Setting up a company	Israel	Middle East & North Africa
Procedures (number)	5.0	8.1
Time (days)	34.0	20.0

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Israel.
Israelbusiness
The competent organization: Registrar of Companies, Ministry of Justice.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	10,877	4,438	5,152
FDI stock (millions USD)	64,004.6	69,164.0	77,810.0
Performance Index*, ranking on 141 economies	54	80	-
Potential Index**, ranking on 141 economies	27	-	-
Number of Greenfield investments***	41	20	-
FDI inwards (in % of GFCF****)	30.0	28.5	-
FDI stock (in % of GDP)	31.7	36.6	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Israel

Strong points: Israel is the country which invests the most in research and development (4.8% of the GDP) in the world. The country has a highly qualified manpower, particularly in engineering. The country is ranked 2^nd place in world, with regard to availability of venture capital. The government provides the necessary support to entrepreneurs.
Weak points: Corporate tax is relatively high. The State of Israel has a significant public debt. Manpower costs are higher than Asian or East European countries. Lastly, Israel suffers from great geopolitical instability due to the political environment of the region.
Government measures to motivate or restrict FDI: Foreign investment incentives, to encourage investment in Israel, are given through the recently revised law. The new law differs from the first one by the addition of a financial incentives plan.
For further information consult Invest in Israel.
Bilateral investment conventions signed by Israel: Israel has signed bilateral agreements with 37 countries.
To see the list of the countries click here.
To view the agreements, click here.

Procedures relative to foreign investment

Freedom of establishment: There are no restrictions on foreign investments except in the industry sectors of defence and telecommunications.
Acquisition of holdings: Any settlement concerning mergers and acquisitions or takeovers which differ from these that Israelis should follow .
Obligation to declare: Investment in Israel in neither subjected to authorisation nor registration except if the company wants to gain from certain advantages.
Competent organization for the declaration

Finding assistance for further information

Investment aid agency: Ministry of Industry and Trade
Israel's Investment Promotion Center
Other useful resources: Business Opportunities of the Ministry of Foreign Affairs