Company Law > Setting up a Company 1

Setting up a company (Part I)

Setting up a company in Israel is a fairly easy task.

It requires drafting and signing articles of association and filings before a lawyer. Those documents will be filed with the Registrar of Companies. Provided legal rules have been complied with, the Registrar will register the company quite rapidly (from a few hours to a few days).

The articles of association

The articles of association set forth at least the name of the company, the purpose of the company, the capital amount and the limitation of responsibility.

Israeli law allows single shareholder company. The number of shareholders is not limited by law.

The purpose of the company may be defined in a very general way ("any lawful activity"), according to the consent of the parties but subject to public order.

The choice of the company's name follows certain rules. The law prohibits use of a name similar to name of another entity or to a trademark, use of a name contrary to public order or related to specific fields of activity (bank..)

The articles of association may set forth sections relating to:

The rights and duties of the shareholders.
Operations and management of the company.