{"id":13338,"date":"2018-03-13T08:28:21","date_gmt":"2018-03-13T08:28:21","guid":{"rendered":"https:\/\/temp.lawoffice.org.il\/?p=13338"},"modified":"2023-03-22T17:54:41","modified_gmt":"2023-03-22T15:54:41","slug":"registration-of-an-israeli-social-business","status":"publish","type":"post","link":"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/registration-of-an-israeli-social-business\/","title":{"rendered":"Registration of an Israeli Social Business"},"content":{"rendered":"<h2 dir=\"ltr\" style=\"text-align: center;\"><b>Registration of an Israeli Social Business<\/b><\/h2>\n<p><img decoding=\"async\" class=\"size-medium wp-image-13339 aligncenter\" src=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/wp-content\/uploads\/2018\/03\/B-Registration-of-an-Israeli-Social-Business-300x199.jpg\" alt=\"Registration of an Israeli Social Business\" width=\"300\" height=\"199\" srcset=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/wp-content\/uploads\/2018\/03\/B-Registration-of-an-Israeli-Social-Business-300x199.jpg 300w, https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/wp-content\/uploads\/2018\/03\/B-Registration-of-an-Israeli-Social-Business.jpg 580w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">This article addresses the registration of an Israeli social business.\u00a0 The terms social business or a social enterprise are used in different countries around the world in order to describe a com<\/span><span style=\"font-weight: 400;\">pany that has the public benefit as its primary goal or as one of its goals. However a social business, in contrast to charitable organizations or non-profit organizations, also has business activity that generates income, and it is not dependent on donations or government grants.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">In Israel the registration of different legal entities is done within various departments of the Ministry of Justice. A social business in Israel can choose to register as a limited liability company at the registrar of companies or as an <\/span><i><span style=\"font-weight: 400;\">amutah <\/span><\/i><span style=\"font-weight: 400;\">(which is a non-profit organization).<\/span><\/p>\n<h4 dir=\"ltr\"><b>This Series of Posts<\/b><\/h4>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Our law firm specializes in several legal fields, including Israeli non-profit organization law, which is under the authority of the <\/span><a href=\"https:\/\/www.justice.gov.il\/Units\/RasutHataagidim\/Pages\/default.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Israeli Corporations Authority<\/span><\/a><span style=\"font-weight: 400;\">. \u00a0We provide a number of helpful resources on non-profit organization law in our list of <\/span><a href=\"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/category\/non-profit-organizations-en\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">non-profit organization articles<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: center;\"><iframe src=\"https:\/\/www.youtube.com\/embed\/VmxBsubaKEw\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h4 dir=\"ltr\"><b>Can a Regular Company in Israel Engage in Charitable Activity?<\/b><\/h4>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">A regular LLC in Israel will find it difficult to do charitable work, since a company is required to primarily focus on generating profit for the shareholders. A company in Israel is not able to take part in actions that are not profitable. Shareholders that oppose philanthropic actions of the company could cause a problem for the company. If you seek to establish a legal entity for the purpose of non-profit activity in Israel, a regular company won\u2019t fit this goal.<\/span><\/p>\n<h4 dir=\"ltr\"><b>An Israeli Company for the Benefit of the Public<\/b><\/h4>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">However, in Israel you do have a legal entity called a company for the benefit of the public (in Hebrew, <\/span><i><span style=\"font-weight: 400;\">chalatz<\/span><\/i><span style=\"font-weight: 400;\">). This is a registered LLC with shareholders, but it has characteristics of an <\/span><i><span style=\"font-weight: 400;\">amutah<\/span><\/i><span style=\"font-weight: 400;\">. The shareholders have more control over the <\/span><i><span style=\"font-weight: 400;\">chalatz <\/span><\/i><span style=\"font-weight: 400;\">than the members of an <\/span><i><span style=\"font-weight: 400;\">amutah<\/span><\/i><span style=\"font-weight: 400;\">, but it is still considered a non-profit company. A <\/span><i><span style=\"font-weight: 400;\">chalatz <\/span><\/i><span style=\"font-weight: 400;\">is like an <\/span><i><span style=\"font-weight: 400;\">amutah;<\/span><\/i><span style=\"font-weight: 400;\"> for example you can apply to receive recognition by the Israeli tax authorities so that anyone that gives donations will receive 35% back at the end of the tax year for the sum they donated.<\/span><\/p>\n<h4 dir=\"ltr\"><b>Registration Process for a Social Business in Israel<\/b><\/h4>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">The <\/span><i><span style=\"font-weight: 400;\">chalatz <\/span><\/i><span style=\"font-weight: 400;\">registration process requires the appointment of shareholders who are the owners of the social business. For the registration you will need at least two shareholders. There is a fee (816 NIS as of January 2018) that is paid to the registrar of companies, and the organization will need to accept the standard bylaws recommended by the state or else draft its own bylaws. The registration process takes 45 days, which is longer than an <\/span><i><span style=\"font-weight: 400;\">amutah<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4 dir=\"ltr\"><b>Contact Us<\/b><\/h4>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">If you have questions about registration of an Israeli social business or anything else related to non-profit companies, please contact us. \u00a0<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400;\">Advocate Joshua Pex specializes in Israeli non-profit law and would be happy to offer legal assistance.<\/span><\/p>\n<p>[author_and_contact_info]<br \/>\n<img decoding=\"async\" class=\"\" src=\"https:\/\/png.pngitem.com\/pimgs\/s\/146-1466755_nearby-transparent-background-address-icon-hd-png-download.png\" alt=\"Address Icon PNG Images, Transparent Address Icon Image Download - PNGitem\" width=\"30\" height=\"35\" \/><strong>: Menachem Begin St 150, Tel Aviv-Yafo<\/strong><\/p>\n<p><strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Hillel St 23, Jerusalem<\/strong><\/p>\n<div class=\"SnapLinksContainer\" style=\"margin-left: 0px; margin-top: 0px; display: none;\">\n<div class=\"SL_SelectionRect\">\n<div class=\"SL_SelectionLabel\"><\/div>\n<\/div>\n<p><!-- Used for easily cloning the properly namespaced rect --><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Registration of an Israeli Social Business This article addresses the registration of an Israeli social business.\u00a0 The terms social business or a social enterprise are used in different countries around the world in order to describe a company that has the public benefit as its primary goal or as one of its goals. However a&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[185],"tags":[],"class_list":["post-13338","post","type-post","status-publish","format-standard","hentry","category-non-profit-organizations-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Registration of an Israeli Social Business<\/title>\n<meta name=\"description\" content=\"This article addresses issues related to the registration of an Israeli social business. 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