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Israeli Branch Office

Image by Dylan Gillis
Stamping a Document

A Comapny Branch, also known as Corporate Branch is a comfortable option when a full subsidiary is not needed to be operated within the state of Israel, You can read below how we can assist in case you wish to open an Israeli Company Branch.

Branch

Office

At formations.co.il, we specialize in assisting foreign companies establish a presence in Israel. One of the very comfortable options we may offer is to set up a Branch Office. An Israeli Branch Office is a local establishment of a foreign company that operates in Israel as a legal entity, but it is not considered an independent entity. Simply put, the Branch Office is not a legal entity in inself, but rather a local registration of the foreign company

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The Israeli Branch Office allows foreign companies to operate in Israel while benefiting from their established global brand and reputation, without having to establish a new and separate legal entity in Israel.

Important note

an important note for opening a Branch Office in Israel, is that since the Branch Office is not a legal entity in inself, but rather a local registration of the foreign company, this means that dividends which are paid are not in any case subject to Israeli tax law regarding dividends. Stated differently, the company may have an Israeli earning source, and pay local taxes, but when it wishes to pay dividend to its shareholders, it will not be subject to any local dividend tax. (For more information about this point you may contact us by the Contact Form.)

Bank Account Opening for Branch Office

As a matter of fact, after the foreign company has successfuly registered its Israeli Branch Office, local banks in general will be inclined to approve account opening applications. 

 

After the opening of the local account and the issuance of account confirmation letter, the foreign company will enjoy from the great and very important technical benefit of receiving payments right here, in israel, from its clients. Likewise, the foreign company will be in a great advantage in regard to local vendors and suppliers, by being able to pay them immediately from the local bank account, rather than by using the very expensive and slow "SWIFT" payment system.

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