Israel

Financial Reporting Obligations for Companies in Israel

1. Registry for Submitting Financial Statements

In Israel, companies are required to submit their financial statements (annual reports) to the רשם החברות (Registrar of Companies), which operates under the Ministry of Justice (Israeli Corporations Authority: https://www.gov.il/en/departments/israeli_corporations_authority). This can be done via the Corporations Authority's online portal.

2. Legal Forms Required to Publish Financial Statements

The following legal forms in Israel are required to submit and publish financial statements to the Registrar of Companies:

  • חברה בע"מ (Private Limited Company – Required)
  • חברה ציבורית (Public Company – Required)
  • שותפות מוגבלת (Limited Partnership – Required)
  • אגודה שיתופית (Cooperative Society – Required)

Legal forms not obliged to publish financial statements include:

  • עוסק מורשה (Licensed Dealer / Individual Entrepreneur – Not required)
  • שותפות רשומה (Registered Partnership – Not typically required)

3. Auditing Requirements

Auditing of financial statements is mandatory for certain companies based on criteria outlined in the חוק רואי חשבון (Auditors Activities Act: https://www.nevo.co.il/law_html/Law01/183_001.htm).

Legal Form Rule Criteria
חברה בע"מ (Private Limited Company) Mandatory If turnover (more than) ILS 36 million, total assets (more than) ILS 18 million, or employees (more than) 50
חברה ציבורית (Public Company) Mandatory All public companies regardless of size
שותפות מוגבלת (Limited Partnership) Conditional If turnover or total assets (more than) the thresholds similar to private limited companies

4. Stock Exchange Reporting

Companies listed on the Tel Aviv Stock Exchange (הבורסה לניירות ערך בתל אביב, TASE: https://www.tase.co.il/eng) are required to publish their financial statements on the exchange's platform.

5. Deadline for Submitting Financial Statements

  • Private Limited Companies: within 9 months from fiscal year-end
  • Public Companies: within 4 months from fiscal year-end
  • Cooperatives: deadlines may vary but typically align with private companies

6. Partial Financial Statements Submission

Certain small private companies may be allowed to submit condensed financial statements, provided they meet specific conditions relating to size and turnover.

7. Consequences of Non-Submission

Failing to submit financial statements on time can lead to fines, restrictions on business operations, or legal action. Persistent non-compliance may result in strike-off by the Registrar.

8. Foreign-Owned Branches and Newly Established Companies

Foreign-owned branches and newly established companies must comply with the same reporting requirements, with first reports due based on incorporation date.

Sources

Source Link
Israeli Corporations Authority https://www.gov.il/en/departments/israeli_corporations_authority
DLA Piper Guide to Going Global - Israel https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=Israel
Israel Securities Authority https://www.isa.gov.il/sites/ISAEng/Pages/default.aspx
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