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BDO Israel<br />

DOING BUSINESS IN ISRAEL<br />

Eligible businesses are tutored by independent consultants, whose fees<br />

are paid by the Ministry (75%) and the business (25%) within an agreed<br />

time frame, based on the latter’s needs and the Ministry's policy and<br />

budget.<br />

Medium sized businesses (11 - 100 employees) are entitled to up to 150<br />

hours of tutorship; small businesses (5-10 employees) are entitled to up<br />

to 100 hours; very small businesses (up to 4 employees) are entitled to<br />

20 hours only.<br />

In addition, very small business managers may participate in special<br />

courses, in the framework of Small Business Development Centers,<br />

designed to develop their managerial skills.<br />

The Ministry of Agriculture allocates funds for “tutorage” of<br />

agricultural businesses.<br />

7.6.5. Employment Grant Program<br />

In order complement to the revised Law for the Encouragement of<br />

Capital Investments, the government has decided to establish an<br />

additional program to increase employment in remote areas of Israel, as<br />

well as specific centers with high unemployment.<br />

Support will be provided for the establishment or expansion of industrial<br />

plants, telephone call centers, computer service support centers or<br />

logistic centers. In order to qualify for such program, these enterprises<br />

will be required to employ a minimum number of workers at a minimum<br />

wage, as detailed below.<br />

In order to be granted support from this program, companies are<br />

required to compete, and will be invited to submit proposals twice a<br />

year. The maximum amount of support offered is as follows:<br />

All areas: 15% of the cost of average monthly wage for additional<br />

employees, but no more than NIS 120,000 per employee for the entire<br />

period.<br />

Minority and Ultra-Orthodox towns - as above. Enterprises paying<br />

wages below NIS 6,750 will be entitled to more than NIS 60,000.<br />

Despite the above, the total average support granted to each enterprise<br />

will not exceed NIS 100,000 per employee.<br />

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