For the purpose of incorporation one person is sufficient.
Company LTD, is obligated to a double bookkeeping, as well as online reporting to VAT authorities.
It is preferably for a Company LTD, to be accompanied by a permanent lawyer.
A Company must pay a fee each year to the Companies Registrar.
The advantages of a limited company are big, but if the activity is low, the expenses involved in running the company, are larger than the “save”.
Company limited by shares – Company LTD protects shareholders against legal claims, except where shareholders have signed a personal guarantee for the company.
It is recommended to consult with an accountant, before establishing a company.
Enterprise Business in Israel, are increasing.
One of the problems in an online entrepreneurship is crediting expenses before receiving income.
The “test” of starting a business is usually, having an income, it is not the case in an Internet companies.
Expenses of starting a business are considered as expenses incurred, 6 months before the establishment of the business.
Consequently, if a company/licensed dealer is not established, the expenses will not be recognized by the tax assessor.
The VAT law allows offsetting inputs 6 months before the beginning of the business, therefore advisable to open a business, and to gain the expenses that will be recognized for offset in future revenues.