Establishing A Business Entity In Israel

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The influence of British rule immediately prior to the establishment of the State of Israel has left a lasting mark on Israeli corporate law. Even though Israel is commercially much closer to the U.S., the links to the English legal system remain strong. Therefore, Israel has companies rather than corporations. The letters “Ltd.” follow the name of companies with limited liability rather that the U.S. versions of “Inc.” or “Corp.” Israeli companies have shares rather than stock, they have articles of association (but no memorandum of association) rather than certificates of incorporation and bylaws. Israel has a Registrar of Companies keeping records of companies very similar in nature to England’s Companies House. Likewise, many of the characteristics of Israel’s partnerships remain similar to their English counterparts. Consequently, the considerations regarding the type of entity through which to conduct business in Israel, at least as far as whether to form a company or a partnership, will be similar to the considerations in England and in other jurisdictions remaining heavily influenced by English law....

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