Israel Economy Profile - Doing Business 2019
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Doing Business 2019 Israel
Economy Profile
Israel
Page 1
Doing Business 2019 Israel
Economy Profile of Israel
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Israel
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Israel
Ease of Doing Business in DB 2019 Rank
Region OECD high income
190 1
Israel
Income Category High income 49
DB 2019 Ease of doing business score
Population 8,712,400
0 100
City Covered Tel Aviv 73.23
DB 2019 Ease of Doing Business Score
0 100
84.64: Denmark (Rank: 3)
82.65: United Kingdom (Rank: 9)
78.57: Austria (Rank: 26)
77.80: Regional Average (OECD high income)
77.29: France (Rank: 32)
73.23: Israel (Rank: 49)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Israel
1
23
29
28
45 41
55 60 64
78
82 89 90 90
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Israel
100
92.35
82.85
80 75.10 76.24
73.33 72.56 72.73
64.19 65.00
57.93
Score
60
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Israel
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Israel
Starting a Business - Israel
Standardized Company
Legal form Private limited company
Paid-in minimum capital requirement ILS 0
City Covered Tel Aviv
Indicator Israel OECD high Best Regulatory
income Performance
Procedure – Men (number) 4 4.9 1 (New Zealand)
Time – Men (days) 12 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 2.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 4 4.9 1 (New Zealand)
Time – Women (days) 12 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 2.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Israel and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
94.58: United Kingdom (Rank: 19)
93.27: France (Rank: 30)
92.52: Denmark (Rank: 42)
92.35: Israel (Rank: 45)
91.19: Regional Average (OECD high income)
83.21: Austria (Rank: 118)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Israel
Figure – Starting a Business in Israel – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
12 1.6
1.4
Cost (% of income per capita)
10
1.2
8
Time (days)
1
6 0.8
0.6
4
0.4
2
0.2
0 0
1 2 3 *4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Israel
Details – Starting a Business in Israel – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain company registration documents certified by an attorney 3 days
Agency : Attorney
The following company certification documents must be certified by an attorney: NIS 1,859 + VAT
• Application to register the company.
(recommended
• Declaration by the initial director(s) of competence to serve.
minimum fee by the
• Initial shareholders’ signatures on articles of association.
Israeli Bar)
The company's initial Articles of Association must be signed by the initial
shareholders and their signature needs to be authenticated by an attorney.
2 File with the registrar of companies, Ministry of Justice 2 days NIS 2,150 (online
Agency : Ministry of Justice process) or NIS 2,614
To register a company, the promoter must: (paper process)
1) File the articles of association;
2) The directors must sign a declaration stating that they have the capacity to
serve and their signatures must be authenticated by an attorney;
3) The shareholders must also sign a declaration stating that they have the
capacity to hold shares in a company and their signatures must be authenticated
by an attorney.
3 Register for taxes at Ministry of Finance, Income Tax Department and at the 7 days no charge
National Insurance Institute
Agency : Ministry of Finance
To register for company taxation, the promoter must file the company deed and
identity certificate of registration. Upon registration at the Ministry of Finance, the
company is automatically registered for social security at the National Insurance
Institute
4 Register for VAT at Ministry of Finance, Customs and VAT Department 1 day, simultaneous no charge
Agency : Ministry of Finance with procedure 3
The regional VAT office also operates under Ministry of Finance. To register for
VAT, the promoter must file the certificate of incorporation, identity documents for
all directors, a lease agreement, and other information.
The VAT authority generally asks for a bank account for VAT refund purposes (or
for VAT payment). It takes a few minutes to open a bank account, assuming that
the company provided all required documents, including a company resolution to
open the account and the rights of signature. There are no fees to open the
account, but bank commissions may vary according to the bank and bank
account features.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Israel
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Israel
Dealing with Construction Permits - Israel
Standardized Warehouse
Estimated value of warehouse ILS 7,182,044.50
City Covered Tel Aviv
Indicator Israel OECD high Best Regulatory
income Performance
Procedures (number) 13 12.7 None in 2017/18
Time (days) 207 153.1 None in 2017/18
Cost (% of warehouse value) 1.8 1.5 None in 2017/18
Building quality control index (0-15) 14.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Israel and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.94: Denmark (Rank: 4)
80.29: United Kingdom (Rank: 17)
79.30: France (Rank: 19)
75.41: Regional Average (OECD high income)
75.10: Israel (Rank: 41)
75.08: Austria (Rank: 42)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Israel – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.9
200
0.8 Cost (% of warehouse value)
0.7
150
0.6
Time (days)
0.5
100
0.4
0.3
50 0.2
0.1
0 0
1 *2 3 4 5 6 7 8 *9 10 11 12 13
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Israel
Figure – Dealing with Construction Permits in Israel and comparator economies – Measure of Quality
15 14.0 14.0
13.0
11.0 11.5
Index score
10 9.0
5
0
Israel Austria Denmark France United Kingdom OECD high income
Details – Dealing with Construction Permits in Israel – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 File a request for information regarding the land 30 days ILS 193
Agency : Municipality
BuildCo should file a request for information regarding the land. An updated
survey of the land, signed by an authorized surveyor, should be attached to the
request. The survey should be marked by the local committee engineer and sent
back to BuildCo, together with the requested information.
2 Obtain a survey map 7 days ILS 1,710
Agency : Authorized Surveyor
BuildCo must hire an authorized surveyor who inspects the site, marks the plots
and gives BuildCo the survey of the land. The authorized surveyor also obtains
the land extract from the Land Registry on behalf of BuildCo. Since this
procedure is actioned by the previous one, and it is done by the same
organization, it can be simultaneous.
3 Obtain building permit from Local Committee 135 days ILS 42,556
Agency : Local Committee
BuildCo must file an application for a building permit. The application should be
signed by:
• BuildCo
• An authorized engineer
• The planner of the frame of the building
• The person in charge of frame construction
• The person in charge of the audit
The documents obtained in the previous procedures should also be attached to
the application, as should the building scheme and a schematic diagram of the
construction area.
According to the Planning and Building Regulations Amendments (Request for
Building Permit, Conditions and Fees) of 2014, the fee is ILS 32.72 per square
meter. BuildCo must notify the regional Work Supervisor at the Local Committee
and the person(s) in charge of the supervision.
4 Obtain marking report from authorized surveyor 7 days no charge
Agency : Authorized Surveyor
Once the building permit is obtained, BuildCo will request a marking report from
an authorized surveyor. This marking report is to reflect the footprint of the
building on the land.
5 Hire a certified building inspection agency 1 day ILS 24,600
Agency : Certified Building Inspection Agency
BuildCo must hire a certified external building inspector who will handle the
following inspections:
Concrete inspection: This aims to test the quality of the concrete used and its
conformity to standard
Pipe inspection: This also aims to examine the quality of pipes used to ensure
conformity with standards
Sanitation inspection: This is carried out after pipe inspection, to assess the
general quality of the sanitary conditions.
Upon completion of the inspections, the external certified inspector prepares a
report for each inspection for BuildCo who will then submit same to the Local
Authority.
Page 11Doing Business 2019 Israel
6 File an application for certificate of completion 1 day no charge
Agency : Local Committee
An authorized engineer or architect conducts several inspections during the
construction period and produces reports on the outline of the building, the
foundations, the frame, and on completion of the building. These reports are
submitted when filing for the certificate of completion. The application must be
signed by BuildCo, the engineer, and the architect. This filing can only be
processed after the certified laboratory has granted its certification.
7 Receive inspection from the Fire Department 1 day no charge
Agency : Fire Department
The inspection from the Fire Department happens only when the certificate of
completion has been granted.
8 Obtain certification from the Fire Department 2 days no charge
Agency : Fire Department
The certification of the Fire Department inspection only happens when the
inspection took place.
9 Obtain approval from the Home Front Command 2 days no charge
Agency : Home Front Command
BuildCo must obtain the approval of Home Front Command on the quality of
construction to ensure bomb shelter and other safe guards are factored in during
construction.
10 Receive final inspection from the local authority 1 day no charge
Agency : Local Authority
Before issuing the final certification, the local authority inspects the building.
11 Obtain certification of completion 7 days no charge
Agency : Local Authority
Final inspection is conducted.
12 Obtain occupancy certificate 7 days no charge
Agency : Local Authority
All the documents listed in previous procedures should be attached to the
application for an occupancy certificate. This certificate is required for installing
water and electricity.
13 Obtain water and sewage connection 14 days ILS 57,000
Agency : Mei-Avivim (Water Company of the City of Tel Aviv-Jaffa)
Only once the occupancy certificate is granted one can request and obtain the
water and sewage connection.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2019 Israel
Details – Dealing with Construction Permits in Israel – Measure of Quality
Answer Score
Building quality control index (0-15) 14.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice; Final
inspection occurs
most of the time.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance ;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 13Doing Business 2019 Israel
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 14Doing Business 2019 Israel
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Israel
Getting Electricity - Israel
Standardized Connection
Price of electricity (US cents per kWh) 11.9
Name of utility The Israel Electric Corporation Ltd.
City Covered Tel Aviv
Indicator Israel OECD high Best Regulatory
income Performance
Procedures (number) 5 4.5 3 (25 Economies)
Time (days) 102 77.2 18 (3 Economies)
Cost (% of income per capita) 13.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 6 7.5 8.0 (27 Economies)
Figure – Getting Electricity in Israel and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
96.45: United Kingdom (Rank: 7)
92.01: France (Rank: 14)
90.22: Denmark (Rank: 21)
87.72: Austria (Rank: 28)
85.47: Regional Average (OECD high income)
76.24: Israel (Rank: 78)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Israel
Figure – Getting Electricity in Israel – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
100 16
14
Cost (% of income per capita)
80
12
Time (days)
10
60
8
40 6
4
20
2
0 0
1 2 *3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Israel and comparator economies – Measure of Quality
8 8
8 7.5
7 7
7
6
6
Index score
5
4
3
2
1
0
Israel Austria Denmark France United Kingdom OECD high income
Page 17Doing Business 2019 Israel
Details – Getting Electricity in Israel – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Israel Electric Corporation and await initial estimate 11 calendar days ILS 0
Agency : The Israel Electric Corporation Ltd.
The application for an electricity connection can be submitted by phone, by fax,
by mail or by arriving to the Israel Electric Corporation offices. The application
should include: the building permit, accurate information concerning the required
power connection, the building specifications, the location of the building, the
designation of the business and the date when the power is requested.
After getting all the essential information from the customer concerning the
connection, the Israel Electric Corporation will indicate the initial expected costs.
Along with the response, IEC will attach a bill for 10% of the initial estimate costs
(“advance payment”).
2 Await completion of technical coordination of project by Israel Electric 30 calendar days ILS 0
Corporation
Agency : The Israel Electric Corporation Ltd.
The customer should pay the advance payment in order to start the project
planning. The payment can be done at the bank or at the utility. After the
payment, the Israel Electric Corporation opens an order file and works on
technical coordination.
After the technical coordination is completed a written agreement between the
customer and the Israel Electric Corporation regarding the process of connection
works, their schedule and costs is signed. It also specifies the responsibilities of
the applicant and the utility and the final estimate.
At the completion of the technical coordination process, the IEC would send to
the customer a bill for 70% of the final estimate.
3 Await and receive site inspection by Israel Electric Corporation 3 calendar days ILS 0
Agency : The Israel Electric Corporation Ltd.
An external inspection carried out by the Israel Electric Corporation is required
during the technical coordination. Someone from the applicant's party has to be
present for the inspection.
4 Await completion of external works by Israel Electric Corporation 60 calendar days ILS 19,902.95
Agency : The Israel Electric Corporation Ltd.
The customer should pay 70% of the final estimate (minus the “advance
payment”) to begin the external works and 30% at their completion. The
customer pays only for the connection fees which are determined by the Public
Utility Authority for Electricity. All the additional works are at the Israel Electric
Corporation expense.
An underground connection is the only available option.
5 Await and receive internal wiring inspection, meter installation and final 1 calendar day ILS 0
connection
Agency : The Israel Electric Corporation Ltd.
An inspection of the internal wiring by the Israel Electric Corporation’s examiner
is required. The licensed electrician should submit to the IEC the plans of the
internal wiring. The electrician may request the inspection before the completion
of the external connection works by the Israel Electric Corporation, so that the
internal inspection would be conducted immediately after their completion. The
electrician should be present during the inspection.
If there is no problem with the internal wiring, the examiner will install the meter
at the same day and the final connection will be completed.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Israel
Details – Getting Electricity in Israel – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 1.2
System average interruption frequency index (SAIFI) 1.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online https://www.iec.co.il/
EN/IR/Documents/tar
iff_1.4.12.pdf
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2019 Israel
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Israel
Registering Property - Israel
Indicator Israel OECD high Best Regulatory
income Performance
Procedures (number) 6 4.7 1 (4 Economies)
Time (days) 37 20.1 1 (New Zealand)
Cost (% of property value) 7.2 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 19.0 23.0 None in 2017/18
Figure – Registering Property in Israel and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
89.88: Denmark (Rank: 11)
79.97: Austria (Rank: 32)
77.17: Regional Average (OECD high income)
75.34: United Kingdom (Rank: 42)
64.19: Israel (Rank: 89)
63.33: France (Rank: 96)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Israel – Procedure, Time and Cost
Time (days) Cost (% of property value)
7
35
6
30
Cost (% of property value)
5
25
Time (days)
4
20
3
15
10 2
5 1
0 0
1 *2 3 *4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2019 Israel
Figure – Registering Property in Israel and comparator economies – Measure of Quality
30
24.5 25.5
25 23.0 24.0 23.0
Index score 19.0
20
15
10
5
0
Israel Austria Denmark France United Kingdom OECD high income
Details – Registering Property in Israel – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a land registration extract from the Land Registry Office Less than one day, ILS 15
Agency : Land Registry office online
In order to verify that the property is registered in the name of the seller and that
no other rights of any kind of third parties are registered, the buyer obtains a land
registration extract relating to the property from the regional land registry office. It
is possible to retrieve an extract online (costing approximately NIS 15). The
extract is electronically signed and constitutes a binding legal document in every
respect.
2 Check the Municipality record relating to the property Less than one day, no charge
Agency : Municipality online
The Municipality records show the right to build on the land of the property, and
can indicate whether the building was constructed according to the applicable
building permits, whether there are any legal proceedings relating to the
construction and use of the building, etc.
3 File a report on the transaction with the Municipality and obtain tax 25 days ILS 110
clearance from the Municipality
Agency : Tax Department of the Municipality
The Municipal Certificate for transfer of title confirms that all the Municipal Taxes
relating to the use of the property were paid and that there is no Municipality
Appreciation Levy liability or that such liability was discharged.
The Municipality Appreciation Levy (Hetel Hashbacha) is paid on the
appreciation in the value of the property due to change of the permitted use of
the property ("the Appreciation"). The Hetel Hashbacha is imposed in the
following cases.
Hetel Hashbacha is imposed in the fallowing cases.
1) When a city building plan is approved.
2) When the city provides relief construction rights.
3) Resulting from the resolution of the original zoning conforming use of the
property
Hetel Hashbacha shall be paid to the municipality only if there has been a
change of zoning for a neighborhood which causes the value of the property to
rise.
The assumptions in this case study do not indicate that such a change was
made, so there is no Municipality Appreciation Levy liability. The rate of the
Municipal Appreciation Levy payable is 50% of the Appreciation.
4 File a report on the transaction with the tax authority and their obtain tax 21 days ILS 430,922.67; (6%
clearance of property tax)
Agency : Tax Authority
After the sale agreement has been prepared and signed by the parties, they have
30 days to file a report on the transaction based on self-assessment with the tax
authorities. It should include all details of the transaction including the tax amount
and calculation. Following the filing of the report on the transaction a voucher will
be sent by the tax authority. Usually the self-assessment is prepared by the
company's lawyers and accountants and the report on the transaction is filed by
the lawyer that handles the transaction.
.
Page 22Doing Business 2019 Israel
5 Lawyer drafts sale deed 4 days ILS 82,593.51;
Agency : Lawyer (0.8%-1.5% of
After filing a report on the transaction with the tax authority, the following taxes, property value)
based on self-assessments, must be paid:
(1) Capital Gains Tax (Mas Shevach) - paid by the seller on the difference
between the purchase price and the original purchase price paid by the buyer in
the current transaction. According to the Amendment No. 70 to the Land
Taxation (Capital Gain and Purchase) Act 2011, starting on March 31, 2011 the
purchaser makes an advance payment on account of CGT at the rate 7.5%-15%
of the value of the transaction (the full amount of CGT is set off against the
consideration of property and is regarded as if it was paid to the seller). The tax
is up to 25 % for companies (Land Betterment Tax);
(2) Purchase Tax (Mas Rechisha)- paid by the purchaser is a flat rate of 6% for a
commercial property. Purchase tax is paid within 60 days after filing the self-
assessment report;
(3) Betterment Tax (Hetel Hashbacha) - only if there has been a change of
zoning for a neighborhood which causes the value of the property to rise.
The sale deed agreement is commonly prepared by the parties' lawyers. Lawyer
fees for a commercial warehouse will be in the range of 1.0-2.0% of property
value.
6 Apply for registration at the regional Land Registry Office 7 days ILS 37
Agency : Land Registry office
When all the certificates mentioned in Procedures 4 and 5 are obtained, the sale
deed is signed by both parties.
When the registration is made in the Land Registry, the signature of the parties
on the deeds and other certain details relating thereto are required to be
authenticated by a lawyer or the Land Registrar, after the nature of the
transaction and the consequences thereof were explained to the parties and it
was clear that the parties willingly signed it.
The transaction is subject to a 17% VAT, paid normally on the 15th day of the
month following the date of receipt of payment
The documentation shall include:
• Transfer deed (prepared by the parties or a lawyer)
• Tax Authority Certificates confirming tax payments (obtained in Procedure 5)
• Municipal tax clearance (obtained in Procedure 6)
• Certificate of incorporation of the parties
• Minutes of the companies’ board of directors with resolution to execute the
transaction. (If a power of attorney was executed by the company and authorized
by a notary that the subscriber is empowered to execute on behalf of the
company- there is no need to attach the minutes).
• Counsel’s or accountant’s certificate regarding both companies including the
following details: existence of the company; the company is authorized to
execute the transaction according to its articles of association; and the
participants at the board of directors meeting as detailed in the abovementioned
minutes are the directors of the company and empowered to act on behalf the
company and to sign the deed of transaction.
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 Israel
Details – Registering Property in Israel – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 7.0
What is the institution in charge of immovable property registration? The Land
Registration and
Settlement of
Rights
Department
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey of Israel
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0
paper format or in a computerized format (scanned or fully digital)? digital
Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 4.0
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5
publicly available–and if so, how?
Link for online access: https://www.gov.il
/he/service/bill_of
_sale
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.justice
.gov.il/Units/Land
Registration/agro
t/Pages/RishumF
ees.aspx
Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access: https://www.gov.il
/he/service/bill_of
_sale
https://www.gov.il
/he/service/bill_of
_sale
https://www.gov.il
/he/service/land_
registration_extra
ct
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Page 24Doing Business 2019 Israel
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5
by anyone
Is the applicable fee schedule for accessing maps of land plots made publicly available— No cost 0.5
and if so, how?
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
specific time frame—and if so, how does it communicate the service standard?
Link for online access: http://mapi.gov.il/
newsandupdates/
documents/aman
a2017.pdf
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 2.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (0–8) 6.0
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Lawyer;
Is there a national database to verify the accuracy of identity documents? Yes 1.0
For a standard land dispute between two local businesses over tenure rights of a property Tel Aviv
worth 50 times gross national income (GNI) per capita and located in the largest business Magistrate Court
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0
case (without appeal)? years
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
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