This article is intended for businesspeople not living in Israel who wish to register a new company in Israel and\/or for companies residing outside of Israel that wish to establish a subsidiary in Israel, and\/or an attorney representing the above parties.<\/p>\n
The challenge<\/span><\/b><\/p>\n An individual or a company that do not reside in Israel, which is interested in establishing a new company in Israel is liable to run into several problems:<\/p>\n Occasionally the Israeli Consul is situated in a location distant from the shareholders and\/or directors, and it is not so easy for them to get there.\u00a0 Additionally, the Consul will not confirm a signature on Hebrew language documents for a person who does not speak or understand Hebrew.<\/p>\n Technical matters that should be taken into account:<\/p>\n One of the documents required for establishing a company in Israel is the Articles of Association.<\/b><\/p>\n The Articles of Association lays down rules for the company’s conduct (a sort of code of laws in this regard) such as: appointing or dismissing directors, convening of a general assembly of shareholders or directors, company decision-making and more.<\/p>\n These rules have both internal and external significance to the company.<\/p>\n There is internal significance to the company due to the Articles of Association; namely the relationship between shareholders, between shareholders and members of the Board of Directors, and between the directors themselves.<\/p>\n In addition, there is external significance in the relations between the company and third parties.<\/p>\n It is highly important that this document be formulated by an Israeli attorney well-versed in this area.<\/p>\n There are two solutions:<\/span><\/b>\u00a0<\/b><\/p>\n Solution 1:<\/b><\/p>\n Based on our experience in dealing with Israeli bureaucracy, we’ve discovered that the simplest and most elegant solution is to establish a company in the name of the attorney who acts as a temporary and short-term trustee on behalf of the client.\u00a0 Then, immediately upon the company’s establishment, the attorney transfers company shares to the client, dismisses the first appointed director (the attorney) and appoints directors on behalf of the client.<\/p>\n Solution 2:<\/b><\/p>\n The second option is more complicated: translating the documents into English.\u00a0 The client arrives at the Consul with the documents in both languages and the Consul agrees to confirm the client’s signature on the Hebrew documents that he must sign.\u00a0 The company is still required to supply a physical address in Israel.<\/p>\n\n
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