Parents Helping to Buy an Apartment: Gift, Loan and Prenup
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Setting Up a Company or Non-Profit in Israel
Setting up a company? Start with the right decisions
Want to open a company and give it a sound legal basis from day one? At Paz Israel & Co. we help you choose the corporate structure, reach agreements between the founders, prepare the company documents and file the application with the Israel Corporations Authority. Contact us and we will review together what your business needs.
What should you check before registering a company?
- The company name, shareholders and directors.
- The purposes of the activity and the agreements between the partners.
- Tax implications, running costs and reporting obligations, in consultation with a suitable professional.
Does a limited company always protect its shareholders?
A company is a separate legal entity, but the separation is not absolute. In certain circumstances shareholders or officers may incur personal liability. Registering a company should therefore not be seen as a guarantee of exemption from every debt or claim.
What does the set-up process include?
After the company details are chosen and the incorporation documents prepared, an application for registration is filed with the Corporations Authority. After registration, the need to open a bank account and arrange reporting to the Tax Authority and the National Insurance Institute is examined, according to the company’s activity. Paz Israel & Co. can assist with the legal aspects of the process.
Setting up a non-profit? Define the purposes and structure correctly
Setting up a non-profit (amuta) starts with choosing its purposes, founders and articles, and filing documents with the Registrar of Non-Profits. Our office supports founders in reviewing the documents and arranging the legal aspects of the set-up.
What is the difference between a non-profit and a company?
A non-profit is established to promote purposes other than distributing profits to its members; a company operates within a different legal framework. The choice depends on the purpose of the activity, the method of funding, the management structure and the reporting obligations. Setting up a non-profit does not automatically grant exemption from all taxes or approval of tax benefits for donors; the conditions and procedures must be examined with the Tax Authority.
How can our office help?
We can help you choose the right structure, prepare articles and registration documents, and arrange the relationship between the founders. If you are considering setting up a company or non-profit, contact Paz Israel & Co. to discuss your needs.
More articles
Prenup, Pensions, Study Funds and Stock Options
How pensions, study funds and stock options are divided under the Israeli resources-balancing regime, and what a prenup can set to prevent a future dispute.
Prenup and an Investment Property, in Israel or Abroad
What happens to an investment apartment on divorce, and how a prenup can settle rent, appreciation, a mortgage paid from joint funds and property in Cyprus.
Prenup When One Partner Is a Foreign Resident or New Immigrant
A prenup for an international couple in Israel: which law governs your property, choosing the law in the agreement, notary approval, apostille, assets abroad.
Frequently asked questions
How many shareholders are needed to form a company?
An Israeli limited company can be formed with a single shareholder. Registration is with the Registrar of Companies at the Israeli Corporations Authority, with articles of association and directors’ details.
How many founders does a non-profit (amuta) need?
At least two. The amuta is registered with the Registrar of Amutot, and needs defined objectives and bylaws, a board and an audit body.
What is the difference between a sole proprietor and a company?
A company is a separate legal entity, so as a rule its owners are not personally liable for its debts. On the other hand it has reporting, bookkeeping and annual report obligations. The decision depends on the scope of activity, risks and tax considerations.
Why do we need a founders’ agreement?
To set in advance share allocation, roles, investments, decision-making and what happens when a partner leaves. Such an agreement prevents costly disputes later.