How to Open a Company Bank Account in Israel

In this blog post we will cover all the major strong points about opening a corporate bank account in Israel.

In general, the banking system in Israel is very robust. The banking system is received a strong back up by the state, by a stringent requirements of equity capital, as well as very strict reserve ratios, so that there will never be a case that an Israeli bank will get into financial shallow waters.

In this way, you can be sure that the company's money is completely safe from any trouble.

Everyone Understands English

In Israel everyone understands good English, so that all communication with the bank can be easy and fluent – both verbally and in writings via emails or the bank website ticketing messages system.

All Banks have Online Banking Websites

In Israel everyone is online, so the banking system is advanced in that it has online banking, and in English.

Some banks have even 2FA so there shall be an increased security for outgoing transactions, to protect your money.

Multicurrency Accounts

In Israel by default the account owner receives USD, EUR and GBP accounts, but the account owner can ask for much more currencies. In the website there is support for all major currencies such as YEN, JPY, CHF, CAD, AUD, but you can ask your banker to receive, send and exchange in almost any currency, such as ZAR, DKK, AED, SEK and more.

And the best part – adding all those currencies is free of charge.

International Transfers

All banks in Israel are working with the SWIFT international money transfer system, which can work with Europe, the U.S.A, Japan and all other countries.

Access to Local and International Capital Markets

With a bank account in Israel you can invest in securities such as bonds, stocks, options and ETFs, both of local market and international markets. One of the best things about having a local bank account in Israel is that you can have a full access to the Israeli stock exchange.

Stable Currency

If you are not familiar with the exchange rate of the "Shekel", the name of Israel's official currency, you probably don't know that the "Shekel" is also very stable and robust, making importing and exporting very reliable fact. This is due to the fact that the central Bank of Israel has around 200 billion U.S dollars in reserves, making it an extremely stable currency to begin with, since the central bank usually smooths-out all speculative activity and potentially volatile circumstances.

International Transfers

All banks in Israel are working with the SWIFT international money transfer system, which can work with Europe, the U.S.A, Japan and all other countries.

Opening a New Company Bank Account in Israel

In general, an Israeli company is not required to open a bank account if such company wishes not. This is similar to the U.S, Britain, Australia, etc., and unlike the "continent states" such as Bulgaria, Germany, Austria, Luxemburg, France, Spain, etc.

Stated differently, the bank account opening is an optional procedure which is not part of the incorporation process. As a consequence, a company formed without opening a subsequent bank account, can exist at itself, i.e. without ever having to open a bank account.

Why should a company wish to do so? This is useful for companies without money transactions, for example companies which are designated to be holding companies of property, including intellectual property.

Remote Bank Account Opening?

One important fact to know, is that the process of bank account opening can be done without ever setting foot on Israeli soil, i.e. completely remotely. This is done by way of a power of attorney to a local representative (us), and so the process only requires you to answer certain business questions about the nature of the company's intended business.

It takes some good connections with local banks (which we have) and working your way through the bank requirements and forms (which we know how to do).

What is the Process of Opening a Company Bank Account?

The first thing to be doing is to approach the bank. The company's representative must contact any bank and try to find out whether the company may be of interest to the bank as a client. Since the banks are in heavy competition with each other, it is reasonable that an account will be opened with one of them.

To be accepted as a wanted client, the company will provide full details about its business, as well as full incorporation scheme and information about the people who control the company. Elaborate details are an essential part of the account opening process, as well as full cooperation with questions.

After the bank receives its full information, the bank then decides to open the account, whereupon the company receives IBAN (international bank account number) and credentials to the online banking interface (username and an initial password).

Also, the account owner receives an "account confirmation letter", an example of which you can see below (from the Israeli "Bank Leumi"), of one of our clients:

Which Banks in Israel?

A company bank account may be opened in any of the Israeli banks, which are, by order of preference and recommendation: Leumi Bank, Mizrahi Bank, Hapoalim Bank, Discount Bank, First International Bank, Bank Otzar Hakhayal, and Bank of Jerusalem.

What are the Account Fees?

Well, for certain the answer to the question in the sub-headline depends on the bank. But in Israel, account fees are considered standard for a retail bank. It can be around 10-20 dollars a month for a company account without much activity. However, even if the company has substantial account activity the fees are definitely not much higher.

As far as the fees are concerned, it should be noted that all banks in Israel are retail, even though all have private wealth management departments.

Company Registered Address

If a company wishes to open a bank account, the bank will require a monitored address to which it can send communications in writing to the company.

The address is just the company's local registered address which is also used by state to send letters to the company, usually about compliance requirements such payment requests and filing obligations.

Tax Registration?

When a company wishes to become active and trade within Israel, naturally a tax registration is the next step. However, a tax registration cannot be completed before a local bank account is opened for the company.

The company needs to open the bank account before proceeding to the process of tax registration, so that the tax authorities may be able to refund VAT charges, in cash transfer, to the company's bank account, when the company first begins its business by expending more cash than its income.

A Bank Account in Israel for a Foreign Company?

If you have a company outside Israel, and that company does business in Israel, you might want to know that it is possible to open a bank account in Israel directly for your company, even though the company itself is not Israeli.

In this way you can actually do business much more easily in Israel.

The only requirement to open a bank account in Israel for your foreign company, is to open a branch office in Israel for the foreign company. The process of opening a branch office consists of appointing a local tax representative, obtaining a registered address, and going through a relatively short process of branch office registration. Thereafter, immediately the foreign company can proceed to open a bank account with a local Israeli bank.

For more information about opening a branch office, click here.

Open your new Israeli Company Bank Account Now!

Want to open a company in Israel with a bank account? Want to open only a bank account? Contact us now and we will help you immediately!