The Israeli representative performs various actions for the foreign company, such as contact with and reporting to the tax authorities \u2013 VAT and income tax. Usually this representative is an Israeli resident. The representative is in fact a proxy of the company, whose job it is to report the economic activity of the foreign company, receive funds for it and handle any issue required by Israeli law.<\/p>\n

Serving as an Israeli representative entails various risks. It is important to understand that the representative takes upon themselves all of the risks of the foreign company and its exposure before the Israeli tax authorities. There is not necessarily complete correlation between the company\u2019s activity and what is known to the tax authorities. Therefore, these are risks that the representative takes on personally.<\/p>\n

Among the subjects that the Israeli representative handles regularly: tax transactions such as withholding tax, VAT deduction and filing tax returns. Beyond that, the representative also handles coordination between the company\u2019s international activity and Israeli activity in terms of taxation and double taxation agreements. Of course, fulfilling these tasks requires extensive experience in the field of corporate law and company taxation. The unique knowledge required for the job, coupled with the large responsibility it entails, lead to the high cost of appointing a representative.<\/p>\n

Contact an attorney who specializes in commercial law<\/strong><\/h4>\n

As we have explained above in detail, an Israeli representative for a foreign or international company fulfills a key role and takes on many risks in the name of the company. For more questions on this subject and corporate law in general, you can contact an expert in commercial law from our offices. Our offices specialize in commercial law, company taxation and corporate law, and advise international companies who are interested in operating in Israel.<\/p>\n

[author_and_contact_info]<\/p>\n

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We are often asked by foreign and international companies seeking to operate in Israel – why does appointing an Israeli representative for a foreign company involve such substantial expenses? There are a number of reasons, but the main one is the high level of commitment on the part of the Israeli representative in their work…<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[161],"tags":[],"class_list":["post-67647","post","type-post","status-publish","format-standard","hentry","category-corporate-and-commercial-law-en"],"acf":[],"yoast_head":"\n