Entity Establishment Services

Set Up Your Company in Israel

End-to-end incorporation, tax registration, payroll, and ongoing compliance — for foreign companies ready to establish their own legal entity in Israel.

From EOR to Your Own Entity

You've Grown Beyond Your EOR. What Comes Next?

Many of our clients start their Israeli journey with an Employer of Record arrangement — a fast, low-risk way to hire local talent without a legal entity. But as teams grow, the economics and strategic logic shift. Having your own Israeli subsidiary gives you full legal standing, a local brand presence, the ability to sign contracts directly, and greater control over your operations.

The challenge is that setting up and running an Israeli company compliantly from abroad requires a local accountant, a commercial lawyer, a bookkeeper, and a payroll officer — all working in coordination. CWS Israel brings all of that together in a single, managed service, delivered in English, by professionals who understand the specific needs of foreign-owned companies.

3–10
Business days to register a company with the Registrar
23%
Standard corporate income tax rate in Israel (2025)
18%
VAT rate in Israel as of January 2025
100%
Foreign ownership permitted — no local shareholder required
Our Services

Everything You Need, Under One Roof

We coordinate the full ecosystem of professionals required to establish and maintain a compliant Israeli entity — so you have a single point of contact, not four separate vendors.

🏛️

Company Incorporation

We prepare and file all documents with the Israeli Companies Registrar (Rasham HaChevrot), including the Memorandum and Articles of Association, shareholder declarations, and director appointments. You receive your Certificate of Incorporation and company number.

📋

Tax & VAT Registration

We register your company with the Israel Tax Authority (Misrad HaMasim) for income tax withholding (Nikui Mas), VAT (Mas Erech Musaf), and the National Insurance Institute (Bituach Leumi). All filings are handled in Hebrew on your behalf.

🏦

Bank Account Setup

Opening a corporate bank account in Israel as a foreign-owned company requires local knowledge and preparation. We guide you through the process with the major Israeli banks, prepare the required documentation, and accompany you through the KYC process.

📊

Bookkeeping & Accounting

Monthly bookkeeping, VAT returns, and management of your Israeli accounting records in compliance with Israeli GAAP. We provide English-language reports and ensure your books are audit-ready at all times.

💼

Payroll Processing

Monthly payroll for your Israeli employees, including income tax withholding, Bituach Leumi contributions, pension fund management, and filing of Form 102 with the Tax Authority. Payslips issued in Hebrew and English.

⚖️

Commercial Legal Support

Access to a vetted Israeli commercial lawyer for employment contracts, commercial agreements, corporate secretarial work, and periodic compliance reviews. Legal advice delivered in English, with full Hebrew execution.

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Annual Financial Statements

Preparation of annual financial statements and corporate tax returns in accordance with Israeli accounting standards. We coordinate with auditors where required and manage the full submission process with the Tax Authority.

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EOR-to-Entity Transition

Already using CWS Israel as your Employer of Record? We manage the full transition — migrating employees to your new entity, transferring payroll, updating contracts, and ensuring zero disruption to your team during the changeover.

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Ongoing Compliance Management

Regulatory requirements in Israel change frequently. We monitor updates to labour law, tax rates, Bituach Leumi contributions, and reporting obligations, and proactively update your processes to keep you compliant year-round.

How It Works

Your Path from Decision to Operating Entity

A structured, guided process that takes most companies from initial consultation to a fully operational Israeli entity in 6–10 weeks.

1

Free Consultation

We assess your structure, team size, and goals to recommend the right entity type and service scope.

2

Engagement & KYC

We collect shareholder and director information, prepare the incorporation documents, and conduct required KYC checks.

3

Incorporation

Documents are filed with the Companies Registrar. You receive your Certificate of Incorporation and company number within 3–10 business days.

4

Tax & Bank Setup

We register with the Tax Authority, VAT authority, and Bituach Leumi, and guide you through the bank account opening process.

5

Payroll & Contracts

Employee contracts are updated, payroll is configured, and pension fund arrangements are put in place before the first payroll run.

6

Ongoing Management

Monthly bookkeeping, payroll, VAT filings, and legal support — all managed by your dedicated CWS Israel team.

EOR vs. Local Entity

Which Model Is Right for Your Stage of Growth?

Both models have their place. Here's how to think about the decision.

🔹 Employer of Record (EOR)
No legal entity required — hire in days
Lower upfront cost and administrative burden
Ideal for 1–4 employees or market testing
⚠️EOR provider is the legal employer — limited brand presence
⚠️Cannot sign contracts or hold assets in Israel directly
⚠️Per-employee fees become costly at scale (5+ employees)
🏢 Your Own Israeli Entity
Full legal presence — your brand, your contracts
More cost-effective at 5+ employees
Can hold IP, sign leases, and open bank accounts
Stronger signal of long-term commitment to Israeli talent
⚠️Requires 4–8 weeks to set up
⚠️Ongoing accounting, legal, and payroll obligations

Not sure which model fits your current stage? Talk to our team — we'll give you an honest assessment.

Compliance Calendar

What Does Running an Israeli Entity Actually Involve?

Israeli compliance is multi-layered. Here is a summary of the key obligations your entity will face — all of which CWS Israel manages on your behalf.

Obligation Frequency Authority Notes
Payroll withholding tax (Form 102) Monthly Israel Tax Authority Income tax and Bituach Leumi deducted from employee salaries and remitted
VAT return (Doch Mas) Monthly / Bi-monthly Israel Tax Authority Frequency depends on annual turnover; most companies file monthly
Employer Bituach Leumi Monthly National Insurance Institute Employer contributions: 3.55%–7.60% of salary depending on income bracket
Pension fund contributions Monthly Pension funds Mandatory for all employees: employer contributes minimum 6.5% of salary
Annual financial statements Annual Israel Tax Authority Prepared by a licensed CPA; audit required for companies above certain thresholds
Corporate income tax return Annual Israel Tax Authority Standard rate 23%; due within 5 months of financial year end
Annual report to Companies Registrar Annual Companies Registrar Confirmation of directors, shareholders, and registered address
Advance tax payments (Mekadmot) Monthly Israel Tax Authority Prepayments of estimated corporate tax liability based on prior year
Why CWS Israel

We Already Know Your Business

Most entity setup providers start from scratch. CWS Israel is different — if you've been using our EOR service, we already understand your team structure, compensation packages, employment contracts, and compliance history. That institutional knowledge makes the transition to your own entity faster, smoother, and less risky.

And if you're coming to us fresh, you benefit from a team that has guided dozens of foreign companies through the Israeli incorporation process — from US tech firms and European manufacturers to global staffing companies and financial services groups.

  • English-first service — all communications, reports, and contracts in English
  • Single point of contact for accounting, payroll, and legal
  • Experienced with foreign-owned, remotely-managed Israeli subsidiaries
  • Transparent, fixed-scope pricing — no surprise invoices
  • Backed by PwC Israel for audit and assurance services
  • Dedicated account manager throughout setup and beyond
CWS Israel team supporting foreign companies with Israeli entity setup
Cost Estimator

How Much Will It Cost to Set Up and Run Your Israeli Entity?

Answer five questions about your company and receive an itemised, transparent cost estimate covering incorporation, accounting, payroll, and legal services. No registration required.

Entity Setup Cost Estimator

Ready to establish
your Israeli entity?

This calculator provides a transparent, itemised estimate of the costs involved in setting up and running a private limited company in Israel — covering accounting, bookkeeping, payroll, and legal services.

Answer 5 short questions about your company and we'll generate a personalised estimate in under 2 minutes.

Transparent cost breakdown Accountant + Lawyer fees Excludes 18% Israeli VAT
Step 1 of 5
Shareholder Structure
Are the company's shareholders Israeli or foreign nationals?
Step 2 of 5
Initial Team Size
How many employees will the company have at launch?
5
employees
150
Step 3 of 5
Business Activity Level
How would you describe the expected volume of financial transactions per month?
Step 4 of 5
Reporting Requirements
What level of financial reporting does your parent company require?
Step 5 of 5
Legal Services Scope
What level of ongoing legal support do you anticipate needing?
Your Personalised Estimate
Cost Summary
Based on your inputs. All figures in USD, excluding 18% Israeli VAT.
One-Time Setup
Accounting & Tax Registrations
Legal — Incorporation & Contracts Est.
Total Setup Investment
Annual Ongoing Services
Monthly Accounting & Payroll
per month
Annual Accounting Total
12 months
Annual Report + Audit
Legal Services (Annual) Est.
Total Annual Services
Estimated First Year Total
All figures in USD, excluding 18% Israeli VAT
Lawyer fees are estimated based on market benchmarks pending a formal quote. Actual costs may vary depending on the specific nature of your company's activities and legal requirements. Monthly accounting hours are estimated and subject to quarterly review.
📅 Book a Free Consultation ✉ Email Us

All estimates are indicative and exclude 18% Israeli VAT. Actual costs depend on company activity and scope of services required.

Frequently Asked Questions

Everything You Need to Know About Setting Up a Company in Israel

Client Experience

Trusted by Global Companies Entering Israel

"We used CWS Israel as our EOR for two years before deciding to establish our own entity. The transition was seamless — they already knew our team, our contracts, and our compliance history. What could have been a complex, months-long project was completed in under six weeks. We now have a fully operational Israeli subsidiary with payroll, accounting, and legal support all managed by the same team."

— Head of Global Operations, US-based Technology Company

Ready to Get Started?

Let's Build Your Israeli Entity Together

Book a free, no-obligation consultation with our team. We'll assess your situation, answer your questions, and give you a clear picture of the timeline, costs, and next steps.

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