What Is a Foreign Company Branch in Israel?
Moreover, A branch (registered under the Israeli Companies Law as a ‘Foreign Company’) is the Israeli presence of an existing overseas entity. It operates under the same name and legal identity as the parent company. Unlike a subsidiary, a branch does not create a new legal entity — the parent company is directly responsible for all obligations incurred by the branch in Israel, including contracts, debts, and legal proceedings.
When Must a Branch Be Registered?
Specifically, Israeli law requires any foreign company that conducts business in Israel to register with the Registrar of Companies within one month of commencing local operations. ‘Conducting business’ is broadly interpreted to include entering into contracts, establishing a physical presence, employing Israeli residents, and similar activities. Failure to register can result in penalties and may affect the validity of contracts entered into by the unregistered branch.
Registration Requirements
To register a branch, the foreign company must submit: apostilled copies of its certificate of incorporation and constitutional documents (articles of association or equivalent); details and identification of all directors; the address of the parent company’s registered office; the address of the Israeli branch; and the details of the appointed local contact person. Documents must be translated into Hebrew by a certified translator where required by the Registrar.
Ongoing Reporting and Compliance
Additionally, Once registered, branches must file annual reports with the Registrar confirming the continued accuracy of all registered details. Any changes to the parent company’s directors, registered address, or constitutional documents must be reported to the Israeli Registrar promptly. The branch must also comply with Israeli tax obligations and, if employing staff, with Israeli employment law. Our compliance team manages these ongoing obligations on behalf of our clients.
