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Can an Israeli company be restored to the register after it has been struck off?

Yes, but restoration is a court application rather than a form. The Registrar of Companies may remove a company that persistently fails to file annual reports and pay the annual fee under the Companies Law 5759-1999. Once removed, the company has no legal personality, so it cannot sign, sue, hold registered title, or transfer shares. A director, shareholder, or creditor may apply to the District Court for an order reinstating the company as though it had never been struck off. The court normally conditions that order on filing every outstanding report and paying the accumulated fees and fines.

Strike-off is the end point of a process that starts with the company being flagged as a violating company (chevra mefera) for missing its annual report or annual fee. The Registrar issues warnings, then removes the company from the register. Removal is not the same as liquidation: no liquidator is appointed, no assets are realized, and creditors are not called in. That is precisely why restoration exists. Assets that were still registered in the company's name, such as an apartment, a vehicle, or a bank balance, remain frozen, and the Administrator General may take an interest in property left ownerless. The District Court for the district of the company's registered office hears the application and can direct the Registrar to restore the entry retroactively.

Foreign shareholders usually discover the problem at the worst moment, when a bank, the Land Registry, or a buyer asks for a company extract during a transaction. Expect the fix to take months rather than weeks. The company must file an annual report for every year of default, including dormant years, pay the annual fee for each of those years, settle fines, and in most cases obtain confirmations from the Tax Authority. Where the company genuinely has no assets, no contracts, and no unfinished business, leaving it struck off can be the cheaper decision, but that choice does not erase fines already imposed on directors. Keeping annual compliance current is far less expensive than a restoration file.

⚖ In Practice
  • Governing law: Companies Law 5759-1999 (annual report, annual fee, violating company status and the Registrar removal powers); Companies Regulations (Fees) 5761-2001
  • Competent authority: Registrar of Companies (Rasham HaChavarot), Corporations Authority, Ministry of Justice; restoration is ordered by the District Court
  • Annual fee: approximately NIS 1,500 per year at the standard rate, with a higher rate once the early payment window has closed (2026), payable for every year of default
  • Who may apply: a director, a shareholder, a creditor, or any person with a legitimate interest in the company being restored
  • Timeline: typically 3 to 9 months from filing the application to the Registrar updating the register, longer where tax clearances are outstanding
  • Practical consequence of doing nothing: the company cannot transact, registered assets stay frozen, and fines already imposed on directors remain payable

From the full guide: Violating Company Status in Israel: How to Clear It

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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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