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Israel Prepared by Lex Mundi Member Firm, S Guide to Doing Business Israel Prepared by Lex Mundi member firm, S. Horowitz & Co. This guide is part of the Lex Mundi Guides to Doing Business series which provides general information about legal and business infrastructures in jurisdictions around the world. View the complete series at: www.lexmundi.com/GuidestoDoingBusiness. Lex Mundi is the world’s leading network of independent law firms with in-depth experience in 100+ countries. Through close collaboration, our member firms are able to offer their clients preferred access to more than 21,000 lawyers worldwide – a global resource of unmatched breadth and depth. Lex Mundi – the law firms that know your markets. www.lexmundi.com LEX MUNDI Prepared by: 31 Ahad Ha’am Street Tel Aviv 6520204 Israel Tel: +972 3 567 0700 Fax: +972 3 566 0974 E-mail: [email protected] 1 L/44193/0/7123350/1 FIRM OVERVIEW Founded in 1921, S. Horowitz & Co. is one of Israel’s leading and largest corporate and commercial law practices. It is a full-range law firm, comprising of over 160 fee-earners, many of whom are multilingual and have qualified and practised as lawyers in the United States, England, Australia and South Africa. The firm is widely known for the breadth and depth of its expertise and experience, including in mergers and acquisitions, joint ventures, banking, dispute resolution, venture capital, commercial law, intellectual property, information technology, project and asset financing, energy and infrastructure, capital markets, financial services, telecommunications, biotechnology, antitrust, tax, real estate, labour law and environmental law. S. Horowitz & Co. has been recognised as being a leader or first in its field in Israel by all the leading directories. LIMITATIONS ON SCOPE OF THIS GUIDE By its nature, this Guide is merely an overview and is intended to highlight issues for general information purposes only. Because of the many issues discussed and the frequent changes in laws, regulations and procedures, this Guide should neither be construed as offering legal advice nor as a substitute for obtaining proper legal advice. This Guide cannot be relied on for legal advice and use of this Guide does not create an attorney–client relationship. Anyone wishing to do business in Israel or wishing to obtain particular information regarding any aspects of Israeli law or other commercial considerations, should first consult with a qualified Israeli lawyer for specific updated advice and/or information. Accordingly, the information contained herein is not comprehensive and should be used for guidance purposes only. No liability whatsoever with respect to the inaccuracy or otherwise of any information contained in this Guide is accepted by S. Horowitz & Co. This Guide was prepared during 2018 and, with the exception of all matters concerning and references herein to tax, which have not yet been updated and do not necessarily reflect current law, and unless specifically stated to the contrary, this Guide is intended to be accurate as of December 2018. For more updated information on any of the topics discussed in this Guide, or with regard to any other information on Israeli law, please contact the following individuals: Alex Hertman, Adv. ([email protected]) Tal Band, Adv. ([email protected]) Michelle Liberman, Adv. ([email protected]) Keith Shaw, Adv. ([email protected]) S. Horowitz & Co. L/44193/0/7044312/1 Table of Contents Clause Page 1. THE COUNTRY AT A GLANCE ............................................................................. 1 1.1. Languages ........................................................................................................... 1 1.2. Rate of Exchange ................................................................................................ 1 1.3. Geography, Neighbouring Countries and Climate ............................................... 1 1.4. Cultural Influences/Prohibitions ........................................................................... 2 1.5. Religious Influences/Prohibitions ......................................................................... 2 1.6. Infrastructure ........................................................................................................ 3 1.7. Communication .................................................................................................... 4 1.8. Public Services .................................................................................................... 5 2. GENERAL CONSIDERATIONS .............................................................................. 6 2.1. Investment Policies .............................................................................................. 6 2.2. Diplomatic Relations ............................................................................................ 9 2.3. Government ....................................................................................................... 11 2.4. Environmental Considerations ........................................................................... 14 2.5. Intellectual Property ........................................................................................... 19 3. INVESTMENT INCENTIVES................................................................................. 42 3.1. Export Incentives or Guarantees ....................................................................... 42 3.2. Grants, Subsidies or Funds ............................................................................... 44 4. FINANCIAL FACILITIES ...................................................................................... 47 4.1. Banking/Financial Facilities ............................................................................... 47 5. EXCHANGE CONTROLS .................................................................................... 51 5.1. Business Transactions with Nationals, Residents or Non-Residents ................ 52 5.2. Investment Controls ........................................................................................... 53 5.3. Money Transfer .................................................................................................. 54 6. IMPORT/EXPORT REGULATIONS ....................................................................... 55 6.1. Customs Regulations ......................................................................................... 55 6.2. Exports ............................................................................................................... 56 6.3. Foreign Trade Regulations ................................................................................ 57 6.4. Imports ............................................................................................................... 57 6.5. Manufacturing Requirements ............................................................................ 59 6.6. Product Labelling ............................................................................................... 59 7. STRUCTURES FOR DOING BUSINESS ................................................................ 60 7.1. Governmental Participation ............................................................................... 60 7.2. Joint Ventures .................................................................................................... 61 7.3. Limited Liability Companies ............................................................................... 62 7.4. Liability Companies, Unlimited .......................................................................... 65 7.5. Partnerships, General or Limited ....................................................................... 66 7.6. Sole Proprietorships .......................................................................................... 68 7.7. Subsidiaries/Branches/Representative Offices ................................................. 68 (i) L/44193/0/7044312/1 Table of Contents (continued) Clause Page 7.8. Trusts and Other Fiduciary Entities ................................................................... 71 8. REQUIREMENTS FOR THE ESTABLISHMENT OF A BUSINESS .............................. 71 8.1. Alien Business Law ............................................................................................ 72 8.2. Antitrust Laws .................................................................................................... 72 8.3. Government Approvals ...................................................................................... 79 8.4. Insurance ........................................................................................................... 80 8.5. Licences/Permits ............................................................................................... 80 9. OPERATION OF THE BUSINESS ........................................................................ 81 9.1. Advertising ......................................................................................................... 81 9.2. Attorneys ............................................................................................................ 82 9.3. Bookkeeping Requirements .............................................................................. 82 9.4. Business Ethics/Codes ...................................................................................... 84 9.5. Consumer Protection Laws ............................................................................... 85 9.6. Construction ......................................................................................................
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