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What must an Israeli company's articles of association include?

Under Section 18 of the Companies Law 5759-1999, every Israeli company's articles of association (takanon) must state four things: the company's name, its objects or purpose, the details of its registered share capital, and details of the limitation of the shareholders' liability. These four items are mandatory and are filed with the Companies Registrar at incorporation. Beyond them the articles may add optional provisions on share classes, transfer restrictions, the board, and shareholder rights. Where the articles are silent, the default rules in the Companies Law apply.

The articles of association are the company's binding constitution and a public document held at the Companies Registrar. Section 18 lists the four compulsory elements. The name must comply with the naming rules and end with "Ltd" (Ba'am) for a limited company. The objects clause states the company's purpose, and Israeli companies commonly adopt a broad object of engaging in any lawful business. The registered share capital sets out the number and classes of shares the company may issue, and the liability clause records whether shareholder liability is limited to the amount unpaid on their shares. Together these define the company's legal identity from day one.

Optional provisions under Section 19 are where founders tailor the company to their deal. Well-drafted articles regulate share transfers, pre-emption and rights of first refusal, board composition, signatory authority, and the majorities needed for key decisions. Because the articles are public and bind the company, its shareholders, and its directors, they differ from a private shareholders agreement that binds only its signatories, and a conflict between the two must be resolved carefully. Founders forming a company should decide these terms before filing, as covered in the guide to forming a company in Israel. Articles are usually amended later by an ordinary shareholder resolution unless they require a higher threshold.

⚖ In Practice
  • Governing law: Sections 18–20, Companies Law 5759-1999
  • Mandatory contents: company name, objects, registered share capital, and limitation of liability
  • Competent authority: Companies Registrar (Rasham HaChevrot) at the Corporations Authority
  • Amendment: ordinary majority resolution of shareholders, unless the articles set a higher threshold
  • Incorporation fee: approximately NIS 2,600 to register a new company (2026)

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

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