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What is a public benefit company (chevra le'to'elet hatzibur) in Israel and how does it differ from an amuta?

A public benefit company is a limited company that exists for public purposes and may not distribute profits. Chapter 9A of the Companies Law 5759-1999 lets a company whose articles list only public objectives, and which is barred from paying out profits or assets to its shareholders, register as a chevra le'to'elet hatzibur and come under the supervision of the Registrar of Endowments at the Israeli Corporations Authority. The structure keeps the familiar shareholder and director machinery of a company. An amuta, created under the Associations Law 5740-1980, is instead governed by a general meeting of members.

The two forms serve the same charitable purpose through different governance. A public benefit company registers first as an ordinary private company, then applies to be entered on the register of public benefit companies once its articles carry the required restrictions. Supervision is real. The Registrar of Endowments reviews annual reports, and steps such as director remuneration or the disposal of substantial assets need approval. On dissolution the remaining assets cannot go to shareholders and must pass to another public benefit body. An amuta answers to its own members, its board and an audit committee, with the Registrar of Associations performing the equivalent oversight.

Foreign founders and international charities often prefer the company form for one structural reason. A public benefit company can have a single shareholder, whereas an amuta needs at least two founding members and hands control to a membership that can grow and vote. Either way, two further approvals decide whether the organisation can operate at scale. A proper management certificate (ishur nihul takin) from the Registrar is what government ministries require before releasing public funds, and Section 46 approval from the Israel Tax Authority is what allows Israeli donors to claim tax relief. Our guide to registering an amuta in Israel compares the filing steps.

⚖ In Practice
  • Governing law: Chapter 9A, Companies Law 5759-1999; compare the Associations Law 5740-1980 for an amuta
  • Competent authority: Israeli Corporations Authority (Rashut HaTagidim), Registrar of Companies and Registrar of Endowments (Rasham HaHekdeshot)
  • Founders: a public benefit company may have a single shareholder; an amuta requires at least two founding members
  • Fees: company registration approximately NIS 2,600 plus an annual maintenance fee (2026); amuta registration is materially cheaper
  • Operating approvals: a proper management certificate for public funding, and separate Section 46 approval under the Income Tax Ordinance for donor tax relief
  • Distribution: profits and assets may not go to shareholders, and on dissolution they pass to another public benefit body

From the full guide: Registering an Amuta (Nonprofit Association) in Israel

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