Israeli <\/span>amutot<\/span>, or nonprofits, are regulated by the\u00a0<\/span>Israeli Corporations Authority<\/span><\/a>\u202f<\/span><\/p>\n Israeli nonprofits associations (“<\/span>amutot”<\/span>, or the singular “amuta” or “amutah”<\/span>) are sometimes referred to as charitable organizations, and the nonprofit must have the public benefit as its primary goal. Additionally, <\/span>amutot<\/span>\u00a0are dependent on donations and grants.\u00a0<\/span>\u00a0<\/span><\/p>\n Israeli social businesses public benefit corporations (<\/span>cheletz<\/span>) are different from amutot<\/span>\u00a0in that they have<\/span>\u00a0<\/span>shareholders, and also may have<\/span>\u00a0a business component to their work that generates income.\u00a0<\/span>\u00a0<\/span><\/p>\n In order to register a\u00a0<\/span>cheletz<\/span>, you must appoint shareholders who are owners of the social business ‘ nonprofit company.<\/span>\u00a0You need a minimum of two shareholders to start. Additionally, you m<\/span>ust pay a fee, ~800 shekels, to the registrar of companies<\/a>. Furthermore, the organization will need to accept or draft by-laws<\/a>. The registration process generally takes 45 days.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n To register an\u00a0<\/span>amuta<\/span>, or nonprofit organization, you need: two founding mem<\/span>bers, a name, two alternative name suggestions,\u00a0<\/span>amuta<\/span>\u00a0goals, home address for the two founders, and address for the\u00a0<\/span>amuta<\/span>. Once the registration is complete, the\u00a0<\/span>amuta<\/span>\u00a0will need five more members to join, and these seven members need to submit their names\u00a0<\/span>for the registration process. You also need to pay registration fees. Once this is complete, the founders need to sign the registration documents in front of a lawyer and submit the documents to the Registrar of\u00a0<\/span>Amutot<\/span>. The entire process generally takes l<\/span>ess than a month.\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n For more information about nonprofits in Israel, see our articles: Israeli Amuta Registration<\/a>, <\/span><\/i>3 Mandatory Institutions of an\u00a0<\/span><\/i>Amuta<\/span><\/i><\/a>, <\/span><\/i>Public Endowment for Non-Profits (<\/span><\/i>Hekdeshim<\/span><\/i>)<\/span><\/i><\/a><\/p>\n An\u00a0<\/span>amuta<\/span>\u00a0has a few different names in translation — a nonprofit or charitable organization. A\u00a0<\/span>cheletz<\/span>\u00a0has a few different names as well — community intere<\/span>st company (CIC) or social\u00a0<\/span>business<\/span>. Both of these types serve the public interest.\u00a0<\/span>\u00a0<\/span><\/p>\n There are a few key differences<\/a>:<\/span>\u00a0<\/span><\/p>\n An\u00a0<\/span>amuta<\/span>\u00a0is accountable to the registrar of\u00a0<\/span>amutot<\/span>\u00a0and serves the public interest without generating a profit. An\u00a0<\/span>amuta<\/span>\u00a0obtains funds thr<\/span>ough donations and grants.<\/span>\u00a0<\/span><\/p>\n A\u00a0<\/span>cheletz<\/span>\u00a0is a limited liability company registered under the Israeli Corporations Authority while also abiding under the oversight of the registrar of\u00a0<\/span>amutot<\/span>. While a\u00a0<\/span>cheletz<\/span>\u00a0does not generate income for shareholders, it does h<\/span>ave a business component to it, allowing it to generate\u00a0<\/span>income, that<\/span>\u00a0an\u00a0<\/span>amuta<\/span>\u00a0does not.\u00a0\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n After registering your\u00a0<\/span>amuta<\/span>\u00a0or\u00a0<\/span>cheletz<\/span>\u00a0organization at the Ministry of Justice, you need to open a bank account. In order to open a bank account, you will need incorporation certification, organizational by-laws, a list of your board members and directors<\/span>, protocol of the decision to open a bank account, documents showing that signatories are the same as those designated by the organization, Israeli ID or foreign passport <\/span>of<\/span>\u00a0signatories, information about how the account will be used, FATCA declarations f<\/a><\/span>or US citizens, contact information for signatories, a letter of approval by an Israeli lawyer, and a declaration regarding holders of interest and beneficiaries of the account.\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n We provide more information on this along with mandatory paperwork for an ex<\/span><\/i>isting\u00a0<\/span><\/i>nonprofit organization<\/span><\/i>\u00a0here:\u00a0<\/span><\/i>How to Open an\u00a0<\/span><\/i>Amuta<\/span><\/i>\u00a0Bank Account<\/span><\/i><\/a>\u00a0and\u00a0<\/span><\/i>Mandatory Paperwork to Op<\/span><\/i>en an\u00a0<\/span><\/i>Amuta<\/span><\/i>\u00a0Bank Account<\/span><\/i><\/a>.<\/span><\/i><\/p>\n Since August 2016, the Israeli Knesset approved an amendment to the\u00a0<\/span>1938 Municipal and Government Taxes Ordi<\/span>nance<\/span><\/a>\u00a0(link in Hebrew only) making a 67%\u00a0<\/span>arnona<\/span>\u00a0discount relevant to most associations. In order to get this money, an organization must be properly registered and administered. The discount is given for no less than three years, and you need to\u00a0<\/span>submit a signed affidavit<\/span><\/a>\u00a0indicating that the\u00a0<\/span>amuta\u2019s<\/span>\u00a0goals and activities will not change during the period when it receives a discount.\u00a0<\/span>\u00a0<\/span><\/p>\n For more information about nonprofits in Israel, see our articles: <\/span><\/i>Arnona<\/span><\/i>\u00a0Discount for\u00a0<\/span><\/i>Amutot<\/span><\/i><\/a>,\u00a0<\/span><\/i>Certificate of Submission of Documents for Israeli Nonprofit Organizations<\/span><\/i><\/a>, and\u00a0<\/span><\/i>Certificate of Proper Management for an Amutah<\/a><\/span><\/i>.<\/span><\/i>\u00a0<\/span><\/p>\n The General Assembly is one of three mandatory institutions in an Israeli\u00a0<\/span>amuta<\/span>. The General Assembly includes all\u00a0<\/span>amuta<\/span>\u00a0members. It is required to meet once annually, or as o<\/span>ften as indicated in the\u00a0<\/span>amuta\u2019s<\/span>\u00a0by-laws. The General Assembly meeting should be scheduled at least ten days before it is held, and the call for a meeting should include an agenda listing subjects to be discussed in the meeting.\u00a0<\/span>\u00a0<\/span><\/p>\n For more information, see<\/span><\/i>How Do I Register an Israeli Non-Profit (<\/span><\/b>Amuta<\/span><\/b>) or Public-benefit company (<\/span><\/b>Cheletz<\/span><\/b>)?<\/span><\/b>\u00a0<\/span><\/h4>\n
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<\/span><\/h4>\nWhat\u2019s the Difference between an\u00a0<\/span><\/b>Amuta<\/span><\/b>\u00a0and\u00a0<\/span><\/b>Cheletz<\/span><\/b>?<\/span><\/b>\u00a0<\/span><\/h4>\n
How do I open an\u00a0<\/span><\/b>amuta<\/span><\/b>\u00a0bank account?<\/span><\/b>\u00a0<\/span><\/h4>\n
Can I get an\u00a0<\/span><\/b>arnona<\/span><\/b>\u00a0discount for my Israeli\u00a0<\/span><\/b>amuta<\/span><\/b>?<\/span><\/b>\u00a0<\/span><\/h4>\n
What does the Israeli\u00a0<\/span><\/b>amuta<\/span><\/b>\u00a0general assembly do?<\/span><\/b>\u00a0<\/span><\/h4>\n