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Corporate Law

Can a single foreign national be the sole director and sole shareholder of an Israeli company?

Yes. Under Section 211 of the Companies Law 5759-1999, a private Israeli company (chevra pratit) may have as few as one director and one shareholder, with both positions held by the same person. There is no Israeli law that requires directors or shareholders of private companies to be Israeli citizens or residents. The company must maintain a registered Israeli address, and the sole director must obtain an Israeli tax file number from the Israel Tax Authority. Annual compliance obligations apply regardless of whether the company conducts any business.

The Companies Law 5759-1999 imposes no nationality or residency requirement on the directors or shareholders of Israeli private companies. Section 211 allows a single natural person to hold all issued shares and serve as the sole director simultaneously. Incorporation through the Registrar of Companies (Rasham HaChevrot) typically takes 3 to 5 business days with an online application and a government registration fee of approximately NIS 2,635 (2026). The company must have a registered Israeli address — a licensed attorney or registered agent can provide one. The sole director must also register an Israeli tax file number (mispar zihuy miktzoi) with the Israel Tax Authority and, if the company will hire employees, obtain a separate employer registration number. For a complete overview of the Israeli company formation process for foreign founders, including required documents and timelines, see the full guide.

While entirely legal, a structure where one foreign national holds all roles creates practical considerations worth planning around. Israeli banks apply intensive KYC scrutiny to single-beneficial-owner companies with no Israeli presence, so account opening can take 4 to 10 weeks and may require a personal visit to Israel by the sole director. Corporate documents — board resolutions, government filings, notarized deeds — must be executed by the sole director, and if they cannot travel to Israel for each signature, a notarized and apostilled power of attorney to a local attorney is the standard solution. Annual compliance requires a filing with the Registrar of Companies and an annual tax return even for dormant companies; late filings attract fines of NIS 500 to NIS 2,000 per year. Appointing a local accountant or attorney to manage statutory deadlines from day one prevents accumulating penalty debt that can obstruct the company's operations or eventual dissolution.

⚖ In Practice
  • Governing law: Sections 211 and 232, Companies Law 5759-1999
  • Competent authority: Registrar of Companies (Rasham HaChevrot); Israel Tax Authority (Rashut HaMissim)
  • Incorporation fee: Approximately NIS 2,635 (2026) for online incorporation; NIS 3,493 for paper filing
  • Tax file number: Each director must be registered with an Israeli tax file number — obtainable by foreign nationals from the ITA via an attorney
  • Annual compliance: Annual report (dugma 9) to Registrar plus corporate tax return; fines of NIS 500–2,000 per year for late filings

From the full guide: Company Formation in Israel: A Complete Guide for Foreign Founders

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Get a Free Consultation with Adv. Eli ShimonyPrepared under the direction of Adv. Eli Shimony, Eli Shimony Law Office · Editorial policy

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