Corporate Law

Can foreign nationals set up a nonprofit association (amuta) in Israel?

Yes. The Associations Law 5740-1980 lets any two or more people form an amuta, a nonprofit association, and it sets no Israeli citizenship or residency requirement for the founders or members. The amuta registers with the Registrar of Associations and becomes a distinct legal person that cannot distribute profits to its members. Foreign founders do, however, need a registered address in Israel and must appoint the required governing organs.

An amuta is Israel's standard vehicle for nonprofit and charitable activity, governed by the Associations Law rather than the Companies Law. Formation requires at least two founders, a statement of lawful purposes, and articles (takanon); if none are filed, the law's default model articles apply. Once registered with the Registrar of Associations, the amuta must maintain a general meeting, an executive committee (va'ad), and an audit committee or auditing body. Its assets and income must serve its stated purposes, and members cannot take a share of profits, which is what separates it from a company. Larger associations must obtain an annual "proper management" certificate (ishur nihul takin) to receive most public funding.

For a foreign individual or organization wanting to run a charity, community, or educational project in Israel, the amuta is usually the right structure, but a few practical points matter. You need a genuine Israeli registered office, and at least one founder or officer will realistically handle local filings and banking. Registration typically takes a few weeks, and the association still files annually with the Registrar and the Tax Authority even though members receive no dividends. If the real goal is commercial profit rather than public benefit, a standard company is the correct choice instead. For the company route and the incorporation process generally, see How to Form a Company in Israel.

⚖ In Practice
  • Governing law: Associations Law 5740-1980 (Chok HaAmutot)
  • Competent authority: Registrar of Associations (Rasham HaAmutot), within the Corporations Authority
  • Founders: minimum of two; no Israeli citizenship or residency requirement
  • Required organs: general meeting, executive committee (va'ad), and audit committee or body
  • Registration: fee of approximately NIS 1,000 (2026); typically a few weeks to register
  • Key limit: no distribution of profits to members; a "proper management" certificate is needed for public funding

From the full guide: How to Form a Company in Israel: Legal Guide for Foreign Entrepreneurs


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