Doing Business with Israel

Exporting to Israel involves several key steps. Here’s a comprehensive guide:

1. Research Market Requirements

   • Understand Israel’s import regulations and standards for your product.
   • Check for any product-specific certifications needed.

2. Identify Local Partners

   • Establish relationships with local distributors or agents in Israel.

3. Prepare Export Documentation

   • Include commercial invoices, packing lists, and certificates of origin.
   • Ensure compliance with Israeli labeling and packaging requirements.

4. Arrange Logistics and Shipping

   • Choose a reliable shipping company experienced with exports to Israel.
   • Ensure accurate completion of shipping documents, such as bills of lading.

5. Customs Declaration

   • Work with a customs broker to facilitate the clearance process.
   • Pay any necessary duties and taxes.

6. Understand Duties and Taxes

   • Familiarize yourself with Israel’s import duties and applicable taxes.

7. Distribution and Sales

   • Establish distribution channels within Israel.
   • Consider partnerships with local businesses for effective market penetration.

Key Contacts

• Israel Ministry of Economy and Industry
  • Website: Ministry of Economy
• Israel Tax Authority
  • Website: Israel Tax Authority

Importing goods into Israel involves several steps. Here’s a comprehensive guide:

1. Obtain an Importer’s License

   • Register as an importer with the Israel Ministry of Economy and Industry.

2. Classify Your Goods

   • Determine the correct Harmonized System (HS) code for your products to identify applicable duties and taxes.

3. Check Import Regulations

   • Ensure compliance with Israel’s import regulations and any necessary permits or certifications for specific products.

4. Find a Reliable Supplier

   • Establish a relationship with a trustworthy overseas supplier.

5. Arrange Shipping and Logistics

   • Choose a reliable freight forwarder.
   • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.

6. Customs Declaration

   • Submit an import declaration through the Israeli Customs online system.
   • Work with a customs broker if necessary.

7. Pay Duties and Taxes

   • Calculate and pay applicable import duties and VAT.

8. Receive Your Goods

   • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

• Israel Ministry of Economy and Industry
  • Website: Ministry of Economy
• Israel Tax Authority
  • Website: Israel Tax Authority

Incorporating a company in Israel involves several steps. Here’s a comprehensive guide:

1. Choose a Company Type

   • Decide on the type of company (e.g., Private Limited Company, Public Company).

2. Select a Company Name

   • Ensure the name is unique and complies with Israeli naming regulations. Check availability with the Registrar of Companies.

3. Prepare Required Documentation

   • Draft the Articles of Association.
   • Prepare forms detailing company details, directors, and shareholders.

4. Register with the Registrar of Companies

   • Submit the application forms, Articles of Association, and other required documents.
   • Pay the registration fee (approximately 2,614 ILS).

5. Obtain a Company Seal

   • Purchase a company seal for official documentation.

6. Register for Taxes

   • Obtain a tax identification number from the Israel Tax Authority.
   • Register for VAT if applicable.

7. Open a Business Bank Account

   • Open an account in the company’s name.

8. Comply with Legal Obligations

   • Maintain accurate financial records and file annual returns with the Registrar.

Costs

• Registration Fee: Approximately 2,614 ILS.
• Legal and Professional Fees: Vary based on services required.

Key Contacts

• Registrar of Companies
  • Website: Ministry of Justice
• Israel Tax Authority
  • Website: Tax Authority

Setting up a manufacturing plant in Israel involves several steps. Here’s a comprehensive guide:

1. Conduct Market Research

   • Analyze demand, competition, and location advantages.

2. Choose a Suitable Location

   • Consider proximity to raw materials, transportation links, and workforce availability.
   • Check zoning regulations.

3. Incorporate Your Company

   • Register your business with the Registrar of Companies.

4. Obtain Necessary Permits and Licenses

   • Apply for building permits from the local municipality.
   • Secure environmental and safety permits if required.

5. Secure Financing

   • Explore options through banks, venture capital, or investment partners.

6. Design and Construct the Facility

   • Hire architects and contractors for design and construction.
   • Ensure compliance with local building codes and safety regulations.

7. Install Equipment and Machinery

   • Purchase and set up machinery necessary for production.
   • Ensure safety and operational standards are met.

8. Hire and Train Workforce

   • Recruit skilled labor and provide necessary training.

9. Set Up Supply Chain and Distribution

   • Establish relationships with suppliers and distributors.

10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

• Israel Ministry of Economy and Industry
  • Website: Ministry of Economy
• Investment Promotion Center
  • Website: Invest in Israel

Registering a trademark in Israel involves several steps. Here’s a comprehensive guide:

1. Conduct a Trademark Search

   • Ensure your trademark is unique and not already registered. Use the Israel Patent Office database.

2. Prepare Your Application

   • Include details such as the trademark design, classification of goods/services, and applicant information.

3. Submit the Application

   • File your application online through the Israel Patent Office.

4. Pay the Application Fee

   • The fee is approximately 1,600 ILS per class.

5. Examination Process

   • The office examines the application for compliance and potential conflicts.
   • Respond to any objections or requests for additional information.

6. Publication and Opposition

   • If approved, the trademark is published in the Official Gazette for opposition.
   • A period of three months is provided for third parties to oppose the registration.

7. Registration and Certification

   • If no oppositions arise, the trademark is registered.
   • Receive the Certificate of Registration.

8. Maintain and Renew the Trademark

   • Trademarks are valid for 10 years and can be renewed indefinitely.
   • Submit renewal applications to maintain protection.

Costs

• Application Fee: Approximately 1,600 ILS per class.
• Legal Fees: If using an attorney, costs will vary based on services.

Key Contacts

• Israel Patent Office
  • Website: Israel Patent Office

Resolving commercial disputes in Israel involves several steps. Here’s a guide on the process:

1. Attempt Negotiation

   • Begin by negotiating directly with the other party to reach an amicable solution.

2. Mediation

   • Engage a mediator to facilitate discussions. Mediation can be quicker and less formal than court proceedings.

3. Arbitration

   • Consider arbitration for a private and binding resolution. Follow the rules set by the Israeli Institute of Commercial Arbitration.

4. Seek Legal Advice

   • Consult with a lawyer specializing in commercial law for guidance on your case.

5. File a Lawsuit

   • If other methods fail, file a lawsuit in the appropriate court. Prepare necessary documentation and evidence.

6. Court Proceedings

   • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.

7. Judgment and Enforcement

   • If a judgment is made, ensure its enforcement through legal channels.

Costs

• Mediation and Arbitration Fees: Vary depending on the service provider.
• Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
• Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

• Israeli Institute of Commercial Arbitration
  • Website: Israeli Institute of Commercial Arbitration
• Israel Courts
  • Website: Israel Courts

When considering doing business in Israel, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

• Language: Hebrew is the official language, with English widely spoken in business contexts.
• Business Etiquette: Direct communication is valued. Building relationships and trust is important.

Political Factors

• Government Structure: Parliamentary democracy with a stable political environment.
• Regulatory Environment: Supportive of innovation and entrepreneurship.

Economic Factors

• Open Economy: Strong focus on technology and innovation.
• Corporate Tax Rate: Competitive at 23%, attracting international businesses.

Foreign Exchange

• Currency: Israeli New Shekel (ILS).
• Exchange Rate: Generally stable, but subject to global economic fluctuations.

Rule of Law

• Legal Framework: Strong legal system with robust protection for property rights.
• Judiciary: Independent and efficient, with clear commercial laws.

Business Environment

• Infrastructure: Well-developed with modern facilities and technology.
• Workforce: Highly educated, particularly in technology and R&D sectors.

Key Resources

• Israel Ministry of Economy and Industry
  • Ministry of Economy
• Invest in Israel
  • Invest in Israel
• Israel Export Institute
  • Israel Export Institute