preface

BDO Israel
DOING BUSINESS IN ISRAEL
♦ A partnership may be general or limited.
♦ A partnership is not required to file annual reports of any kind. Profit
or loss should be added to the financial reports and income
statements of the individual partners.
4.1.3.1. General Partnership
In a general partnership, each partner is responsible for the
partnership's liabilities without limitation. Each partner is
entitled to act on behalf of the partnership and is held to be its
agent. Each partner's activities and actions are binding on the
other partners.
4.1.3.2. Limited Partnership
A limited partnership is required to have at least one general
partner whose liabilities are unlimited. The limited partners'
liabilities are limited to the extent of their capital contribution, as
specified in a written agreement among all partners.
The limited partners are prohibited from taking part in
management of the partnership.
A limited partnership may not conduct business prior to its
registration.
4.1.4. Cooperatives
The Cooperatives Ordinance governs the activities of cooperatives.
Cooperatives are required to register with the Registrar of Cooperative
Societies at the Ministry of Labor and Social Affairs.
Members of a cooperative may be individuals or other cooperative
societies.
Restrictions exist regarding membership in a cooperative society and the
contents of the cooperative Articles of Incorporation.
This type of entity is not very common and serves businesses mainly in
the transportation and agriculture sectors.
4.1.5. Non-Profit Organizations
Non-profit entities may be established and operated within one of three
frameworks:
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