Hanner & Ofer, Lawyers in Israel >> Israel Company Registration >>
Israel Branch vs Subsidiary vs Rep Office
Israel Company Registration
Nominee Shareholder
Nominee Director
Incorporate with a Nominee Director
Nominee Director Duty
Foreign Company Options

Register foreign company in Israel

Israel Options Comparison
Declaration of Trust
Deed of Trust
Foreign Shareholder
Corporate Foreign Shareholder
Israeli Company F.A.Q
Israel Company Law
Search a company

by name or registered number

List of Companies

List of Israeli public companies

Israel Company Law
Interpretation of the law
Foundation of a Company
Incorporation
Right of Incorporation
Legal Personality
Establishment and Registration of a Company
Purpose of Company
Acts Performed by a Promoter
Articles of Association
Contents of Articles and their Alteration
Name of the Company
Objects of the Company
Registered Share Capital and Distribution Thereof
Limitation of Liability
The Registrar of Companies
The Companies Registry
Keeping of Registers
Appeal
Structure of the Company
Organs of the Company
Powers and the Liability for Acts
Division of Powers Among
Principal Organs
Liability of Company for Acts of Organs
Liability of Individuals in an Organ
Avoidance of Unauthorized Acts
The General Meeting
Powers of the General Meeting
Annual General Meeting and
Special General Meeting
Convening and Direction of
General Meeting
General Meeting of a Private Company
Quorum at General Meeting and Chairman of General Meeting
Voting at General Meeting
Voting by Voting Paper and Statement of Position
Minutes of the Meeting
Defects in Convening Meetings
The Board of Directors
Powers of the Board of Directors
Chairman of Board of Directors
Convening of Meetings of Board of Directors
Meetings of the Board of Directors and their Direction
Voting at the Board of Directors
Minutes of Meetings of the Board of Directors
Defects in Convening Meetings of the Board of Directors
Committees of the Board of Directors
Audit Committee
The General Manager
Administration of the Company
Register of Shareholders and Substantial Shareholders
The Registers
Register of Shareholders
Registration of Share Warrant
Register of Shareholders and Shareholders Outside Israel
Reporting
Reports of Private Companies
Reporting by Public Company
Internal Auditor in a
Public Company
Auditor
Appointment of Auditor
Independence
Ending of Auditor’s
Term of Office
Fees Payable to Auditor
Powers, Duties
and Responsibilities of Auditor
Financial Reports
The Shareholder
The Shareholder and the Share Certificate
Rights and Obligations of Shareholders
Derivative and Class actions
Derivative Action and Derivative Defense
Representative Action
Office Holders in a Company
Directors’ Appointment and Term of Office
Term of Office of Director and Termination thereof
Restrictions on Appointment and Termination of Office
Corporation as a Director
Substitute Director
External Director
Appointment and Dismissal
of Other Office Holders
Duties of Office Holders
Duty of Care
Fiduciary duty
Exemption, Indemnification and Insurance
Rights of Director
Transactions with Interested ies
Capital of the Company
Securities and Transactions Therein
Freedom to Diversify
Registered Share Capital
Issue of Securities
Transfer of Securities
Preservation and Distribution of Capital
Permitted Distribution
Dividend
Purchase
Prohibited Distribution
Redeemable Securities
Acquisition of Companies
Merger
Special Tender Offer
Forced Sale of Shares
Purchase of Shares of the Minority by Holder of Control
Power to Purchase the Shares of Opposing
Shareholders
in a Private Company
General Provisions
Alteration of Class of Corporation
Foreign Companies
Compromise or Arrangement
Remedies
and Monetary Sanctions
Remedies
Monetary Sanctions
A Public Company
Traded Outside Israel
Regulations
 

Israel Branch vs Subsidiary vs Rep Office

A foreign company planning to setup an office in Israel has three options:

1. Branch Office for your foreign entity;

2. Subsidiary Company held by your Foreign Company; or

3. Representative Office.

This article compares these three type of entities to help a foreign company decide the best option for their particular needs.

You may also want to refer to the related guide foreign company options in Israel >>

 

Miss Sahara Ozer, will attend to you (in English)
at Phone No. +972 3 546 88 88

 

In case of emergency, call Gabriel Hanner
at his cellular: +972 50 552 33 33

 

Israel Branch vs Subsidiary vs Rep Office

A key point to note is that a representative office is not allowed to engage in any business activity except market research and liaisoning activities. Two of the ways in which a foreign company may carry on business in Israel are by registering a branch office or by incorporating a limited liability company (i.e. subsidiary company) in Israel.

  ISRAEL BRANCH ISRAEL SUBSIDIARY ISRAEL REP. OFFICE
Legal Type Not a separate legal entity but an extension of the parent company Separate legal entity  distinct from its parent company Has no legal status but just a temporary administrative arrangement
Liabilities Liabilities extend to parent company Liabilities limited to subsidiary Liabilities extend to parent company
Entity Name Must be the same as the parent company Can be the same or different from parent company Must be the same as parent company plus must include Representative Office
Allowed Activities Must be the same as the parent company Can be the same or different from parent company Can only conduct market research or feasibility studies
Validity Period Registered forever until closed Registered forever until closed No need to register
Registration time One week One week No need to register
Taxation

 

Taxed as non-resident entity, local tax benefits not available. Taxed as Israel resident entity, local tax benefits and ASHRA Services available. N/A as Rep Office cannot generate income.
Annual Filing Must file branch office as well as parent company’s accounts.

 

Must file accounts of the Israeli subsidiary. No need to file.
Bank Account Can open bank account in Israel Can open bank account in Israel Can open bank account in Israel to run the cost centre operations. Must be funded by the parent company.
Staff Hiring No restrictions on hiring local or foreign staff No restrictions on hiring local or foreign staff No restrictions on hiring local or foreign staff
Appointment of Officers In order to open VAT file must appoint at least one locally resident person or local entity directed by a local resident person In order to open VAT file must appoint at least one locally resident person or local entity directed by a local resident person No special rules

We are here for you to help founding anyone of those 3 options.

Read about Declaration of Trust

Read more

Like us ?

Prove it :)

 

Miss Sahara Ozer, will attend to you (in English)
at Phone No. +972 3 546 88 88

 

In case of emergency, call Gabriel Hanner
at his cellular: +972 50 552 33 33

FrançaisEnglish  עברית

   

see a bigger map

242 Ben-Yehuda St. Tel-Aviv, Israel          site map