preface

BDO Israel
DOING BUSINESS IN ISRAEL
companies with minor activity, whose annual turnover does
not exceed NIS 500,000.
4.1.2.3. Private Companies
♦ A private company is a non-public company.
♦ A private company may have one or more stockholders.
♦ A private company is required to file an annual report with
the Registrar of Companies including information regarding
stockholders and directors but not financial statements.
♦ Concurrently with the enactment of the Companies Act in
1999, regulations were published regarding reports,
registration details and forms that define the registration and
reporting processes and specify the different forms for
reporting.
♦ Annual audited financial statements, prepared according to
generally accepted accounting principles, should be presented
at the stockholders' annual meeting.
♦ Stocks and other securities should not be offered for sale to
the public.
4.1.2.4. Foreign Companies
♦ Foreign companies wishing to conduct business in Israel are
required to register with the Registrar of Companies and to
submit their Articles of Incorporation (original and an
authorized Hebrew translation), list of directors and other
required information.
♦ Foreign companies wishing to issue securities on the TASE
are required to operate according to the TASE and Securities
Authority requirements.
4.1.2.5. Capital Structure
♦ Securities - Several types of securities are commonly used by
Israeli companies, some of which are described below:
♦ Common Stock - entitles voting rights and participation in
earnings and excess assets in the event of liquidation. The
shares may be of different par values and rights. However,
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