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Corporate Law

Does an Israeli company pay an annual fee to the Companies Registrar?

Yes. Every company registered in Israel must pay an annual fee (agra shnatit) to the Registrar of Companies for each calendar year it exists, under the Companies Law 5759-1999 and its fee regulations. The fee is reduced if paid early in the year and rises to a higher rate after 31 March. Companies that fail to pay accumulate debt and can be declared a "law-breaking company" (hevra mafirat hok), which blocks filings and can expose directors to enforcement.

The annual fee is a standing statutory obligation that is separate from corporate tax and from the annual report. It is set each year by regulations under the Companies Law 5759-1999 and is owed to the Registrar of Companies (Rasham HaHavarot) within the Corporations Authority for every year the company remains on the register, whether or not it traded. Paying before 31 March secures the lower rate, while paying later triggers the higher rate. A company that does not pay, or that fails to file its annual report, can be flagged as a law-breaking company, a status that prevents it from registering charges, changing its details, or obtaining a good-standing certificate until it cures the default.

Foreign owners often overlook this fee because it is small relative to other costs, but the consequences of neglecting it compound. Unpaid annual fees accumulate year after year, and a dormant company that is never formally closed keeps generating the charge. Before selling shares, restructuring, or voluntarily dissolving an Israeli company, owners typically must clear all outstanding annual fees first. Our guide on annual compliance for Israeli companies sets out the full calendar of obligations. If a company is genuinely inactive, it is usually cheaper to dissolve it properly than to let fees and law-breaking-company penalties build up indefinitely.

⚖ In Practice
  • Governing law: Companies Law 5759-1999 and the Companies (Registration Fees) Regulations
  • Competent authority: Registrar of Companies (Rasham HaHavarot), Israel Corporations Authority
  • Fee amount: approximately NIS 1,120 if paid by 31 March, rising to roughly NIS 1,490 afterwards (2026)
  • Non-payment consequence: designation as a law-breaking company (hevra mafirat hok)
  • Applies to dormant companies: the fee is owed even if the company never traded
  • Timing: pay early each calendar year; clear all arrears before dissolving or selling the company

From the full guide: Annual Compliance for Israeli Companies: Owner's Guide

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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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