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There are several ways to form a corporation and several types of company to choose from in Israel.
In this article we will stand on the most popular ones with practical guiding on the formation itself.

Registered business – this type of formation is one of the most simplest there is, a registered business is a business that normally has one person or a partnership that are about to sell goods, property or service. The registration is at the VAT offices located near the business office.
In order for one to register as a registered business he needs to bring the following documents:

- Identification certificate.
- Lease of buying/renting of a place of business.
- Written proof of the business bank account.
- Additional documents proving the existence of the business.

LTD company – a LTD company holds a very significant advantage in that the company is a separate legal entity and thus the manager/owner can rest assure (in most cases) that his personal assets will not be in danger once the company becomes insolvent.
In order to form a LTD company the following procedures must be taken:

- Name choosing – the share holders must decide upon a name for the company according to the law and in the end, the name must include either “limited” or “LTD” (בעירבון מוגבל או בע"מ).
- Shares distribution – the share holders must decide of how will the company’s shares will be divided among them.
- Article of association or regulations – the share holders will have to approve an article of association that will be the base for the company’s activity. The article is in fact a contract between the company and the share holders and as a contract between the share holders and themselves.
- Registration certificate – all the formation documents must be submitted to the registration office in order for the company to be legally registered. After checking the documents and making sure that the company is obeying the corporate law demands. After which the extra documents needed to be add are a declaration from the first directors that they are willing to be directors, the name of the person who signs on the first documents authenticated by a lawyer and the registration toll.
- Opening a bank account on the company’s name.
- Opening a file at the VAT offices.
- Informing the income tax authorities.
- Filing an annual report to the registration office.

Cooperative society – a corporation established according to the “cooperative society directive” and comes to express a combining of labor force on the ground of equality.
In order to establish such a corporation the minimum members are 7 and to follow the following:

- Request for registration – the request must be submitted to the registration office. To the request one must add two copies of the regulation proposal and the names of the people who will negotiate with the registration office regarding those regulations.
- Registration certificate – a certificate signed by the registration office will be use as a conclusive proof that the cooperative is registered according to the law, unless proved otherwise.
- Cooperative name – the society must have with in its name the word “cooperative” and no other corporation but a registered cooperative society is allowed to have in any part of its name the word “cooperative”. In case the society members decided on a limited guarantee the society’s name must have the LTD at the end of the name.