{"id":54144,"date":"2021-02-18T10:17:21","date_gmt":"2021-02-18T08:17:21","guid":{"rendered":"https:\/\/lawoffice.org.il\/%d7%a8%d7%99%d7%a9%d7%95%d7%9d-%d7%97%d7%91%d7%a8%d7%94-%d7%9c%d7%aa%d7%95%d7%a2%d7%9c%d7%aa-%d7%94%d7%a6%d7%99%d7%91%d7%95%d7%a8\/"},"modified":"2023-03-22T19:52:27","modified_gmt":"2023-03-22T17:52:27","slug":"registering-a-public-benefit-company","status":"publish","type":"post","link":"https:\/\/script_transfer_new.mowfns.ap-southeast-2.wpstaqhosting.com\/en\/registering-a-public-benefit-company\/","title":{"rendered":"Registering a Public-Benefit Company in Israel"},"content":{"rendered":"

How Do You Register a Public-Benefit Company in Israel?<\/strong><\/h4>\n

Registering a public-benefit company is a slightly more complicated process than registering an association or company<\/a>. For example, a non-profit organization is established for a purpose that is officially defined at the time of establishment, and the list of possible goals of a public-benefit company is relatively limited. A public-benefit company must register twice – with the Registrar of Charitable Trust and the Registrar of Companies. The Jerusalem branch of our law firm deals with issues related to associations<\/a>, non-profit organizations<\/a>, and companies. This article by lawyer Michael Decker explains the procedure of registering a public-benefit company.<\/p>\n

A Public-Benefit Company Must Be Registered Twice:<\/strong><\/h4>\n

Starting from 2007, when Amendment No. 6 to the Companies Law<\/a> was added, public-benefit companies must be registered both with the Registrar of Companies<\/a> and the Registrar of Charitable Trust<\/a>. The Registrar of Charitable Trust sends to the Registrar of Companies a confirmation that the \"Registeringpublic-benefit company has registered with him, and only then can the public-benefit company register as a company.<\/p>\n

Furthermore, if a public-benefit company has registered as “just” a regular company, as if it were founded for profit, and the authorities discover that the company is in fact a public-benefit company in terms of its goals and procedures, it may be fined and the company may be forcibly registered as a public-benefit company. In contrast, if a company is registered for public benefit, then it obviously must not act to bring profit to the founders and shareholders.<\/p>\n

Goals of Establishing a Public-Benefit Company:<\/strong><\/h4>\n

As mentioned in our article “Amuta vs Community Interest Company (CIC) in Israel<\/a>“\u2014in contrast with an association, there is a limited number of categories that are considered by Israeli law as “public benefit” for the purpose of registering a company as a public-benefit company. However, if the public-benefit company registers as a \u201cregular\u201d for-profit company but its goals are to promote public-benefit issues, this is one of the circumstances in which the authorities may fine the company and register it as a public-benefit company. An updated list of goals<\/a> that can legally be chosen by public-benefit companies is published on the website of the Israeli Ministry of Justice.<\/p>\n

Registering a Public-Benefit Company – Required Documents:<\/strong><\/h4>\n

As of 02.2018, the website of the Israeli Ministry of Justice brings together the guidelines<\/a> and documents that are required for registering a public-benefit company on this page<\/a>, which can be accessed by choosing “Public-benefit company\u201d as the type of company in Step 1 on the page, and then \u201cRegistration of a new public-benefit company” in Step 2.<\/p>\n

Some of the required documents are an application for registering a public-benefit company<\/a>, the company’s articles of association<\/a> (signed by the shareholders), a statement of shareholders\u2019 equity<\/a>, a statement of the directors’ qualifications, a list of the members of the audit committee, a list of the shareholders, and more. All documents must be duly authenticated by a lawyer. If some of the founders of the company are foreign citizens, a passport copy and document authentication<\/a> must be attached. The fee for registering the company may be paid via the website of the Israeli Ministry of Justice<\/a>.<\/p>\n

\u00a0After establishing a public-benefit company, it is important to pay attention to the differences between management of a public-benefit company and management of an association or company:<\/strong><\/h4>\n