08 Oct 2020

The UAE and Israel officially signed the Abraham Accords Peace Agreement in August 2020. This   Treaty for Peace, Diplomatic relations and full Normalization between the two countries was a historic & diplomatic breakthrough in the Middle East. 

By normalizing the relation between the two countries, UAE and Israel will focus on more opportunities on business, trade, travel and also robust foreign relation. 

Israel in General 

Having a population of 9.228 Million (with a majority of young citizens) & a quarterly GDP of 325,463 Million, with an economy composed on a variety of high-tech, science, agriculture, energy, transportation commerce and others, and located on the both historic silk road connecting between Africa, Asia, Europe, and the Middle East Israel is an attractive country to establish commercial and cultural relations.

Incorporating in Israel

There are several ways and options available to a UAE company to take a step into the Israeli market and law system. A UAE company can either be a shareholder in a company incorporated in Israel (including 100% shareholder); or to register in the Israeli corporate registration as a “foreign company” following clause 346 of the Corporate Act – 1999.

The registration as a ‘foreign company’ requires the nomination of a person located in Israel as an authorized representative of the foreign company for the purpose of receiving notices and pleadings. However, the corporate structure of the foreign company remains as it is, which means, that there is no requirement for appointing a local director. Such a registration requires also the registration at the Israeli income text and v.a.t authorities.

Another option is to be registered with a local partner as a “partnership” under the Partnerships Act of 1975, however partners in the partnership do not enjoy a corporate veil and a limitation on their liability.

Israeli Income tax system
The Israeli tax system contains both the territorial and personal principles. Which means, in general, and subject to exceptions by law, income tax is paid for income produced or emerged in Israel or which have been received by an Israeli resident. 

Under the Enforcement of Capital Investments Act of 1959 and other related acts, governmental support and different aspects of tax reliefs and exempts, are provided to a variety aspects of capital investments in the Israeli economy and market. 

Israeli legal system
Israel has one legal system. The civil courts are the Magistrate and District Courts. The Supreme Court is the Appeal Court of the District Court and also acts as the Court of Justice.
The signing on a law and jurisdiction and/or arbitration clause referring the parties to either England's High Court or London Arbitration is quite common, especially in international commercial agreements. 

Israel has ratified the 'New-York Arbitral Awards Convention' (Convention on the Recognition and Enforcement of foreign Arbitral Awards, New York, 1958).
Under the Regulations for the Performing of the New York Convention -1978, the District Courts are authorized to enforce a foreign arbitral award, provided, that the Applicant will present the Court with a verified copy of the award and the arbitration agreement.

Israel's strategic location
Israel is a bridge between Africa, Asia, Europe and the Middle East. The Israeli port of Haifa is less than 45 minutes' drive from the Shieh Husain Bridge connecting between Haifa and Jordan. The Ashdod Port is also near the Jordanian border and the Eilat port is right opposite the city of Aquba. 

This strategic location of the State of Israel can contribute immensely to construction projects and commerce in the region. 


Having an accumulated experience of more than 50 years of practicing law in Israel, Harris & Co. specializes in Maritime Law, Corporate Law and Commercial Litigation. Harris & Co and its affiliates can provide the required legal frame for establishing commercial activities in Israel. Both the formal incorporating and registration and further drafting of commercial agreements, providing advice on matters of tax, import and export, shipping, custom clearance, real estate, and dispute resolution.

To know more about your options in setting up in Israel and for specific legal advice with regard to Israel, please write to us at Enquiries

Copyright 2023 James Berry Associates | All Rights Reserved

Web Design By NEXA

We use cookies to give you the best experience on our website. Read about them in our Privacy Policy.