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Beginners Guide to Starting a Business in Israel: 6 Things You Need To Know

Israel is a small country with a strong economy and a high level of income. Its highly developed technology sector is one of the reasons, this Western Asia pearl is home to a huge number of startups, many of which have successfully grown into global corporations with astronomical revenues and offices in all corners of the world. Did you know that Israel is second only to China (not counting the U.S, of course) when it comes to the number of companies listed at NASDAQ?



There are a plethora of reasons why many entrepreneurs decide to set up a business in Israel, and one of them is definitely the easiness to do it. Indeed, the procedure itself is absolutely uncomplicated and hassle-free – it’s safe to say that such a thing as bureaucracy simply doesn’t exist in this beautiful country. Rest assured, no authority will try to make your life difficult just because there are a myriad of requirements and restrictions, quite on the contrary, everything is surprisingly relaxed like rays of the afternoon light.

However, there is another side of the coin. Just like nobody is going to create roadblocks on your way to success, nobody will make the extra mile to help you in your endeavor. In other words, do not have too high expectations in terms of what the government can do for you, especially if your business can be categorized as small. Well, Israel is unique in many ways and this article was written to cover the traits and specificities of starting a business in that country. Without further ado, let’s turn to the comprehensive guide (not just for beginners!) and take a closer look at the 6 things you need to know if you want your enterprise to get off for the flying start.

You Will Need A Partner


No, we don’t mean you have to enter a partnership with an Israeli company but what we’re trying to say, you will have to find the right people to help you with different stuff. 

First off, all chances are you don’t speak and write Hebrew but your future target audience does, not to mention the laws you have to read and understand and the forms you have to fill in. Make a bit of research to find a law firm that offers respective services and do not underestimate the importance of hiring a local SEO company because in Israel it is easy to open a business but make it a success in the highly competitive market is a pretty challenging task. Look for seasoned marketing experts able to create a holistic campaign – do not forget, that you are in the country of innovative technologies. Also, make sure, people from both the law firm and the marketing agency speak near-native English or, if anything, have an employee who is really fluent in English or, otherwise, it’ll be hard for them to cater to your needs and whims.

Banks Are Not Interested In Your Business

Surprised? Do not be, because to count the number of banks in Israel, you need just the fingers on one hand. What does that mean for an up-and-coming businessman? Simply put, those banks are not interested in attracting new clients – they are big, rich, and do not have to compete for your money. This is not to say, you can’t get money from a bank. You can but be ready to mortgage whatever assets you have at your disposal. Or, try to find other sources for financing your project, indeed, sometimes it’s a good idea to implement the famous hi-tech FFF rule – family, friends, fools.

Be Ready To Rack Your Brains To Name Your Company

Despite what you may think, naming your business can be pretty overwhelming because this area is heavily regulated. Your name can be rejected not only if a business with exactly the same name already exists but also if there is a company with a similar name or the one that shows a partial match. Hence, be ready to brainstorming and rack your brains, and the best advice is to be prepared for every scenario and have several options on the list.

Having An Office Is Not Important

Finally, something that makes life and starting a business much easier – you do not need to rent an office because having a business address is not a requirement for registering a business. Feel free to state the address of your relative, friend, or any other person who doesn’t mind it. Naturally, in Israel, you also can find services that provide a virtual address for small compensation but there is no need to waste your time and money.

Having A Business Doesn’t Mean Living In Israel

If you are not an Israeli citizen, keep in mind that having a business in the country doesn’t give you any privileges in terms of staying there. Israeli government welcomes any new enterprise as a stable source of taxes, but does not have any illusions – it won’t deliver you extra opportunities and rights to live in the country. The only exception is a truly large company that has dozens of employees and huge revenues (read pays hefty taxes). If you are one of the lucky dudes who can brag about running such a solid business, then you can count on a specially designed type of visa and other privileges.

Osek Patur, Osek Murshe, And Others

As already mentioned, starting a business in Israel is nothing complicated, even when it comes to registering a business organization. If you want to run a business as an individual, you can choose either Osek Patur (small business) or Osek Murshe, the only difference between the two is the size of annual income., which is limited for Osek Patur at about $30,000. The latter also doesn’t have to pay VAT. As for companies, you can register either a Public Company or a Private Company, both types have to present an annual report to their shareholders.

Starting a business in Israel is really easy. The main challenge is to stay afloat in the competitive market and use all available opportunities to grow your enterprise. As always, a viable plan is a key to success.

Hernaldo Turrillo
Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.

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