So lets count ten advantages in company formation in Israel which are unique to this heaven on earth.
When you look for a place to set up a business, Israel may seem a surprising choice for registering a company. Although a small country, Israel in fact have strong advantages which make it a favorable place in which to open your new business.
Lets look at 10 reasons for opening your business in Israel.
Reason 1 - Gate to the middle east
The most obvious trait of Israel is that it's basically a land crossroad between Europe, Asia, and Africa. With this strategic location, Israel offers access to global markets. Its location makes it an ideal gateway for companies looking to expand internationally, particularly in the rapidly growing markets of the Middle East.
Reason 2 - Modern legal system
Israel is a liberal republic democracy, meaning that the state belongs to the people, it is run by an elected body, a parliament (the "Knesset"), and the human rights of the individual are given prime importance.
Part of such human rights are the freedom of association, which is the freedom from which derives the right to incorporate - the right to set up companies.
Another important right is the right to property. This right of course is the right to hold assets and the freedom from state seizure of those assets, whether owned by locals or foreigners, and whether created or bought. The right to property is firmly protected by the state, and vigorously sustain by broadly revered unbiased courts. With such a liberal and stable governance system, any assets are legally safe and secured.
Reason 3 - Unusual concentration of technological talents
First of all, the general population is educated for 12 years school and is encouraged to complete all courses and receive a graduation certificate.
Secondly, many people who are conscripted, are being allocated to the army's computer intelligence divisions of the intelligence army. They thus receive very high (military-grade) training of computer programming and cybersecurity, which, after their release from service, makes then the top technology workforce in the world.
If this is not enough, Israel is one of 5 countries with the highest number of undergraduates. The country produces a significant number of engineers, scientists and doctors.
Reason 4 - Many local entrepreneurs
In the venture field, Israel has a great number of startups in proportion to its population, making it a highly educated and skilled place, with a strong emphasis on technology and entrepreneurship, ample talent for companies of all sizes. The entrepreneurs are individuals who understand partnership and responsibility to foreign investments.
Entrepreneurship is deeply ingrained in Israeli culture, with a strong emphasis on innovation, risk-taking, and resilience. This culture encourages individuals to pursue ambitious ventures and overcome challenges.
Reason 5 - Everybody understands and speaks very good English!
Well, everybody is a generalization. It will be accurate to say that the majority understands and speaks very good English. This means that the language barrier is practically nonexistent to English speaking foreign entrepreneurs and investors, making it very easy and convenient to work with the local population, including state institutions, banks, tax authority, and service providers.
Reason 6 - An advanced market of early adopters who like advancement and diversity
Israel's market is an economy full of young people who like to try new things, even to the point of trying a new flavor of ice cream. This trait makes it easier to insert new products to the market. Moreover, since the market is relatively small with 9 million people, with low marketing costs new products have a good chance to be liked and bought.
Reason 7 - Government Support
The Israeli government actively supports entrepreneurship by offering and actually giving various incentives for startups and investors, both local and foreign. This includes grants, tax benefits, and funding programs aimed at fostering innovation and economic growth.
For example, if the company is technology producer, it can receive substantial tax breaks.
Other incentivized activities include the hotels business and the agriculture business.
Reason 8 - Access to Capital
Israel has a surprisingly developed venture capital industry, with investors actively seeking promising startups with strong entrepreneurial leaders to whom give their money.
With vast investment networks, including venture capital firms, corporate investors, and angel investors, a local business, especially in the technology sector, can receive ample funding opportunities for growth and expansion.
Reason 9 - Very stable economy
Israel has around 200 billion U.S dollars in reserves, making it an extremely stable economy.
The local currency, the "Shekel" is also very stable and robust, making importing and exporting very reliable fact.
Plus, the banking system is heavily backed by the country, so that no Israeli bank will ever run into trouble for petty reasons or for isolated human mistakes. The banking system is advanced in that it has online banking, in English, with multi-currency accounts, offering internal exchange transactions, security investments in stocks and bonds including access to the local security exchange, and more.
Reason 10 - Easy marketing
Since the tendency to stay connected is deeply ingrained in the Jewish culture, Israeli people spend a great deal of time online, including social networks, news websites, etc., and they watch a lot of T.V. This is a very favorable feature since it allows a business to go online and just market its products effectively.
To the best of our understanding (as locals), the local population is not particularly patriot as far as the local products are concerned, as the cost of living is quite high in Israel, and therefore any low-cost, high-quality product being imported to the country is welcomed with open arms.
Conclusion
These factors collectively make Israel a very attractive jurisdiction for foreign investment and entrepreneurship, including concerns and companies looking to establish a presence in a thriving economy with access to talent, capital, and global markets.
Click anywhere this website on the "Open a Company" button, fill out the form and register your Israeli Company today with the most professional incorporators of the country – formations.co.il
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