Israel: Operating a Business

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Public limited company (business corporation) no minimum capital	minimum 2 partners liability limited to the amount of contributions.
Limited Liability Private Company (SARL) no minimum capital.	No minimum liability limited to the amount of contributions.
General Partnership no minimum capital.	minimum 2 partners. unlimited liability for debts and obligations of the company.

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Israel.
Israelbusiness
The Competent Organization: Registrar of Companies, Ministry of Justice.

Principle: Enforcement Law in Israel is often criticized. The creditors argue that the system is inefficient and does not provide legal instruments for collecting debts.

	2010
Labor Force	3,080,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)	2006
Agriculture	1.8%
Manufacturing (extraction and industry)	15.7%
Electricity and water supply	0.7%
Construction (building and civil engineering projects)	5.3%
Wholesale and retail trade, and repairs	13.2%
Services for housing and restaurants	4.8%
Transport, storage and communications	6.7%
Bank,insurance and other financial institutions	3.4%
Business Activities	13.9%
Public Administration	4.5%
Education	12.8%
Health, Welfare and social assistance services	10.3%
Community, social, personal and other services	5.0%
Services for households by domestic personnel	1.8%

Opening Hours
Legal Weekly Duration: Maximum 45 hours per week
Maximum Duration: 8 hours per day with a break of 3/4 hours out of which 1/2 hour for meals.
Night Hours: Between 22:00 hours and 06:00 hour.

Working Rest Day: Saturday, the shabbat is the legal weekly day off (waiver for non Jews).
Paid Annual Vacation: Between 14 and 28 days of annual paid leave (based on seniority) the holidays corresponding to Jewish and national festivals are added to this.
Retirement Age: From 60 to 65 years for women and from 65 to 70 years for men.
Child Labor and Minimum Age For Employment: 16 years (14 years for vacant jobs).

Minimum Wage: 3585.18 ILS.
Average Wage: Average monthly gross earnings in Israel is ILS 7,320 (USD 1,883).
Other Forms of Pay
Pay For Overtime: 125% for the first two additional hours, 150% for the hours which follow.
Pay For Rest Days Worked: 150%
Pay For Night Hours: from 16 years between 2200 hours and 0600 hours on the following day, 7 hours per night
Pay For Overtime at Night: 125% for the first two additional hours, 150% for the hours which follow.

The Areas Covered: All the Israeli residents are insured with Bitouah Leumi (Social Security) who are salaried, independent, retires, students or unemployed aged 18 to 60 years (65 years for women). The sectors covered are : maternity, industrial accidents, family allowances, unemployment and retirement.
Contributions: Contributions Paid By the Employer: 4.93 %.
Contributions Paid By the Employee: 9.70%
Competent Organization: Bitouah Leumi (Social Security)

Method of Recruitment: The candidatures are made more and more through the internet.
Recruitment Agencies: Recruitment agencies : Activity, Amal, Jobtov, Enosh, ORS, Dan HR, Tafkid Plus, Kedumin, Manpower.
Recruitment Websites: Jobnet
Jobmaster
Jobs in Israel

Type of Contract: The employment contract is drawn up through legal provisions and to a lesser extent through collective agreements. The employment contract can be written or oral. It can be for indefinite, definite or temporary duration.

Breach of Contracts
Retirement: The retirement generally takes place at 60 years for women and 67 years for men.
Dismissals: Dismissal does not have to be justified in Israel. However, there are limits as for example the case of a pregnant woman who has reported her pregnancy or the period which directly follows her return to work.
Other Possible Methods: Resignation.
Labor Laws: Labor Law on the website of the Ministry of Industry, Trade and Labor

Social Dialogue and Involvement of Social Partners: Most of the unions belong to Histadrut (General Federation of Labor in Israel), or to a much smaller rival federation, the Histadrut Haovdim Haleumit (the National Labor Federation). Negotiations are carried out at the national and sectoral level.
Unionization Rate: Unionisation rate in percentage of the labor market population in Israel : 23% in 2004.
Unions: Histadrut
Regulation Bodies: Ministry of Industry, Trade and Labor

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