Israeli Company Annual Maintenance
Israeli Company Annual Maintenance
Ensuring legal compliance is a critical aspect of corporate governance for Israeli companies.
Israeli companies operate within a multifaceted regulatory framework comprising various laws, regulations, and standards.
Hereunder we make a list of annual maintenance requirements for Israeli companies.
1. Shareholder Meeting
Companies are required to have an annual general meeting (AGM) of shareholders within a specified timeframe, typically within six months from the end of the year. AGMs serve to approve financial statements, elect directors, appoint auditors, and address other specific matters, if relevant.
2. Annual Report Filing
Every year Israeli companies must file an annual report with the companies registrar at the ministry of justice. This is different than a tax report, wherein the report filing is about the current legal state of the company, in contrast with its financial state.
changes in corporate structure or ownership will be reported here, as well as any changes in the company's address, etc. Failure to comply with filing requirements can result in penalties and regulatory sanctions.
For example, recently a company which was fined a penalty ILS 8,500 for not filing its annual report for merely two years.
In Hodorov Law Firm we can help you avoid those penalties by filing those annual reports on time and in due manner.
Furthermore, as lawyers, we can even try to waive them or reduce them in case your company was already fined.
3. Financial Reporting and Tax Compliance
If the company is active, and only in that case, the company must prepare annual financial statements in accordance with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). These statements should accurately reflect the company's financial position, performance, and cash flows.
Thereupon, the company must fulfill its tax obligations, including filing annual tax returns, paying corporate income tax, and value-added tax (VAT). Compliance with tax laws and regulations is essential to avoid penalties and legal repercussions. This, again, only if the company is active.
Annual State fee: the Israeli annual state fee for companies is double-tiered. If the company pays its due fee until the 31st of March, it will pay approx. USD 617 including handling, exchange rates, etc. If the company will pay the due fee later than 31st of March and until 31st of December, the fee will be approx. USD 767 including everything.
Hodorov Law Firm is a local Israeli firm, and we can help you pay your annual fees by way of receiving international bank transfers, or other means of payment including cryptocurrency.
4. Registered Address
Every company in Israel must have its registered address. This address serves as an address for the state registry, to receive periodic letters from the state and from the banks, if relevant. The address doesn't have to be a physical office, but also it cannot be a P.O. box. In actual fact, one address can serve as a registered address of many companies, and a law firm office can serve as a registered address of a private company as well.
In Hodorov Law Firm we offer the cheapest possible service of registered address for a company.