What is the minimum share capital required to form a private company in Israel?

The Companies Law 5759-1999 (*Hok HaChavarot*) is the principal statute governing Israeli corporate law. The Companies Regulations (Registration Fees and Procedures) require a founding document (articles of association, *takanon*) and a completed registration application, but there is no minimum capital figure in the statute. The 1999 reform of Israeli company law abolished the concept of authorized capital as a mandatory creditor-protection mechanism and instead relies on the solvency test (*mivhan yosher*) codified in Section 302: a company may not make a distribution to shareholders unless its board resolves that the company is solvent at the time of distribution and in the reasonably foreseeable future. This places the onus on directors — not on the size of share capital — to protect creditors. The Registrar of Companies (*Rasham HaChavarot*) processes incorporation applications and typically approves them within 1–3 business days when filed online through the official government portal.

For foreign founders or investors establishing an Israeli company, the practical minimum capital is set not by law but by operational necessity. Israeli banks typically ask for evidence of business activity and adequate capitalization when opening a corporate account, and some impose their own informal thresholds of NIS 10,000–20,000 as initial deposit. Foreign companies seeking a grant from the Israel Innovation Authority (*Rashut HaChidush*) must demonstrate sufficient funding to execute the supported project, though no fixed capital minimum is required for the application. A comprehensive company formation guide covers all required documentation. Foreign nationals forming an Israeli company should also note that the company must file annual reports with the Registrar and maintain a registered Israeli address — failure to file triggers daily fines and can lead to administrative dissolution.

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

← Browse all Q&A