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.
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