Israel Company Law 1999

Chapter 2: Foreign Companies in Israel

346. (a) A foreign company shall not keep a place of business in Israel, and in particular shall not maintain an office for the transfer of shares or for the registration of shares, unless registered as a foreign company under the provisions of this section and unless it pays the registration and publication fees prescribed by the Minister under this section.

(b) The application for registration shall be submitted to the Registrar within one month of setting up a place of business and the following documents shall be attached thereto:

(1) a copy and translation into Hebrew, confirmed in the manner prescribed by the Minister, of the documents under which the company is incorporated or pursuant to which it operates, as required under the laws of the country in which it is incorporated, including its articles of association, if any;

(2) a list of the directors of the company;

(3) the name and address of a person resident in Israel who is authorized to receive judicial documents on behalf of the company, and to receive notices issued to the company;

(4) a copy certified in the manner prescribed by the Minister, of a power of attorney authorizing a person normally resident in Israel to act on behalf of the company in Israel.

(c) Where an alteration occurs in a document or a change of the directors or the name or address of one of the persons referred to in paragraphs (3) and (4) of subsection (b) is altered, the company shall give notice thereof to the Registrar within fourteen days of the date of the change. (d) The Minister may prescribe additional documents that a foreign company must attach to an application for registration and must notify the Registrar of any changes therein.

Duty to register foreign company

347. A judicial document or notice required to be served on a foreign company registered in Israel shall be considered to have been served in accordance with the law if addressed to the authorized person notified to the Registrar as referred to in section 346 and left at the address notified as aforesaid, or sent there by mail.

Service on foreign company

348. A foreign company shall file, once a year, an annual report as prescribed by the Minister.

Annual report

349. A foreign company in breach of the provisions of section 346(a), as well as any office holder thereof who is party to such breach, shall be subject to a fine in accordance with section 61(a)(2) of the Penal Law 1977, and, in the case of an ongoing breach, shall be subject to a further fine in accordance with section 61(c) of the said Law for every day on which the breach continues, from the date that the company receives a notice from the Registrar of Companies.

Penalties