Starting a Business in Israel? Choose the Right Route for You
In Israel, there are a number of different types of business entities recognized by law, which typically include companies, partnerships, cooperatives, and non-profit associations. Naturally, the processes for starting a business in Israel are varied; depending on the sort of organization you’re interested in building. While kick-starting certain types of businesses begin with a straightforward, easy to understand process, you’ll likely still have questions and concerns. Regardless of the type of organization you’re aiming to construct, the advice of an experienced business law firm will guide you through the necessary procedures.
Private and Public Companies
Private companies are among the most common business entities, and are usually fairly simple to create and build. A privately owned company denotes independent operation with little to no government involvement. This allows several individuals or organizations to work in unison and leaves room for multiple shareholders to assert equal voting rights. Publicly held companies are different in the sense that they list their assets, such as shares, stocks, and bonds, for the financial interests of the general public. Business law firms can shed light on the requirements that need to be met for public companies to trade via the Tel Aviv Stock Exchange, or TASE, and other popular markets.
Other Types of Entities
Partnerships, cooperatives, and non-profit associations are three more routes commonly taken by those interested in starting a business in Israel. Business partnerships, either limited or unlimited, can be arranged between two or more individuals or organizations to improve efficiency and productivity. An uncommon approach to creating a business entity is through the establishment of a cooperative. Individuals and organizations form cooperatives to synergize easily and tackle issues related to industries such as agriculture and transportation. Potential business owners with a specific goal in mind, rather than compensation, generally lean toward non-profit organizations. Portions of the revenue generated are allotted to charities, groups, and other organizations in need of funds.