Nominee Director Services and VAT Representative.
The role and scope of nominee local director service and VAT representative
Each Israeli company who's shareholders and directors are foreign citizens or foreign entities must appoint an Israeli resident as VAT Representative.
As per Article 60 of the Israeli VAT Law 1975
60. A foreign resident who has a business or activity in Israel
(A) A foreign resident, who has a business or activity in Israel, shall appoint within thirty days after he began to do business or act in Israel a Permanent Resident as Representative in Israel, and will notify the Director of the VAT Authority with an attached written consent of the Representative.
(B) An appointed Representative will be lawfully taxable as the foreign resident.
(E) In this section "foreign resident" - as defined in Section 1, including -
(1) For an individual - including a person who is currently in Israel without permanent visa or residence permit;
(A) A corporation whose control and management are operated abroad;
(B) a company registered in Israel as a foreign company.
If you are a foreign business professional or a foreign entity who does not have a local director that can sign as the Company VAT representative, you can utilize our Nominee Local Director/VAT Representative service to satisfy this statutory requirement. The service can be provided on a short-term or annual basis as below:
If you are not relocating to Israel, you will need our nominee director service on an annual basis.
If you or someone of your staff are applying for employment pass with permanent visa or residence permit you will need our nominee director service on a temporary basis. Once your employment permanent pass is approved, you will be able to take over as the local resident director.
Please note that in Israel, a Nominee Director and moreover a VAT Representative has the same responsibilities as any other director. Therefore providing a nominee director for your company imposes certain responsibilities on you as well as us and we would like to highlight the terms of our nominee director service as below.
- We will appoint one of our team members as the nominee local director for your company
- The service is offered for statutory compliance only. The nominee director will not be involved in any management, financial, or operational matters of the company. You must appoint one or more other individuals (who can be foreign individuals, including yourself) as the executive directors who will be responsible for running the company.
- In addition to our nominee director fee, we also collect a refundable security deposit for the provision of our nominee director service. The security deposit is collected to safeguard the interests of nominee director.
- You can ask our nominee director to resign at any time by identifying another person who will be acting as the local director. We will refund the security deposit within 5 working days after the change has been affected with Company Registrar and VAT Authorities.
- You must subscribe to bookkeeping service and accountant audit service approved by our firm, provide copies of your company's bank and financial statements on a monthly basis.
Note that a higher nominee director or security deposit fee may apply if your company falls under any of the following:
- The annual turnover of the company exceeds US$1 million.
- The company has external debt.