For ease of doing business and starting
a business in Israel, its average rankings are 40th and 53rd
over 189 countries in the world.
To do business in Israel, a
foreign enterprise has to complete registration with the Registrar of Companies
and then provide a Memorandum and Articles of Association, list of the
company’s directors and other necessary documents, which could be written in
either Hebrew – Israeli national language or English.
Or else, a foreign company
could obtain an Israeli subsidiary company, a branch office or a representative
office so as to participate in the Israeli market.
Regarding the taxes on
corporations, in 2017, Israel increases the profit tax rate, which makes it
more expensive for companies to pay taxes.
Currently, the standard income
tax rate in Israel is 25%. Nevertheless, the tax is charged based on the
situation of the company. The taxes of corporations based in Israel are charged
on their worldwide income while the others are charged on their income in
Israel’s legal structure
consists of three legal traditions: 1. English common law, 2. civil law, and 3.
Jewish law. It is based on the belief of stare
devises (precedent) and is an adversarial structure, where the parties in
the suit bring evidence before the court. Court cases are resolved by
professional judges rather than juries.
Marriage and divorce are below
the judgment of the religious courts: Jewish, Muslim, Druze, and Christian.
A board of Knesset members,
Supreme Court justices, and Israeli Bar members carries out the election of
Administration of Israel’s
courts (both the “General” courts and the Labour Courts) is carried
by the Administration of Courts, situated in Jerusalem.
The good thing about Israel
Legal Structure is that both their Courts, General and Labour courts are
paperless courts: the storage of court files, as well as court decisions, is