Expand Business in Israel
Global Upside helps businesses expand into Israel by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations of Israel.
The hiring and incorporation processes in Israel are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Israel. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Israel’s economy has been seeing constant growth and during the last few years, has also registered for one of the best performances of OECD countries. Israel is one of the top exporters of diamonds, integrated circuits, cars, petroleum, and photo lab equipment.
- Israel ranks as the 32nd largest economy in the world in terms of nominal GDP.
- Israel ranks as the 11th largest economy in Asia.
- Israel is the 24th best country for business.
Company is a form of legal establishment that can have an unlimited number of investors, however, having more than 50 investors will lead the organization to various reporting prerequisites. There is no personal liability for the investors and the complete administration responsibility is governed by the board of directors.
Branch / Representative Office is an establishment that is not an individual entity but is the same as the original entity. It is characterized under the Israeli Companies Law 1999, as a Foreign Company.
It takes approximately two months to establish a legal entity set up in Israel.
According to the Labor Law of Israel, it is not necessary to provide a written employment contract, though it depends on the employers.
However, an employment contract needs to mention the below details in writing:
- Name and address of the employer and employee
- Date of commencement of the job
- Job description
- Identity of direct supervisor
- Working hours
- Probationary period
- Termination and notice period
The payroll frequency is monthly and wages can be paid in cash, cheque, or by electronic transfer.
The accounting standard-setting, in Israel, is initiated by the Israeli Accounting Standards Board (IIASB). Through its declaration of Accounting Standard No. 29, Adoption of International Financial Reporting Standards (IFRS), and in compliance with the Israeli Securities Authority (ISA) Securities Regulations (Annual Financial Statements) 2010, the IIASB necessitates the application of IFRS for all recorded establishments.
In Israel, the laws that regulate the right to privacy are the Basic Law: The Protection of Privacy Law (PPL), 5741‑1981, and the guidelines published thereunder, Human Dignity and Liberty, 5752 ‑ 1992, and the regulations of the Israel Privacy Authority.
Anti-Bribery & Anti-Corruption Law
Israel recently approved the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. It is referred to as the OECD Anti-Bribery Convention. The OECD, also known as Organization for Economic Co-operation and Development, is a committee of experts that regulates the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism.
An alteration to the Israeli Penal Law, in July 2008, included the crime of bribery of a foreign public authority (Section 291A to the Israeli Penal Law 5737-1977).
The legal consequences of being found guilty of bribery and corruption offenses for public officials are:
i) Imprisonment for up to 10 years.
ii) A monetary fine of 1.13 million Israeli Shekels.
iii) An equal amount of four times the value of the advantage gained via bribery.
For any individual who provides bribe to a public officer, the penalty is imprisonment of up to 7 years or a similar fine.
Legal entities that are guilty of bribery have to pay a fine of:
i) An equal amount of four times the value of the advantage gained via bribery.
ii) A monetary fine of 2.26 million Israeli Shekels.