Start-Up Law in Israel

Forthcoming in Start-up Law edited by Alexandra Andhov and Pedro Telles, 2020, Edward Elgar Publishing Ltd.

42 Pages Posted: 20 Apr 2020

See all articles by Ehud Kamar

Ehud Kamar

Tel Aviv University - Buchmann Faculty of Law; European Corporate Governance Institute (ECGI)

Ayal Shenhav

Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co.

Shay Yanovsky

GKH Law Offices

Date Written: April 20, 2020

Abstract

This is a chapter on Israel in a forthcoming book on start-up law in several jurisdictions. Israel is a world-renowned leader in innovation and entrepreneurship. The country’s legal environment is an important basis for this success. It allows foreign investors to invest freely and repatriate funds without currency controls, and offers tax exemptions, a legal system based on common law, and an independent judiciary.

The law permits a variety of investment structures, including equity investments, debt financing, and combinations of the two. Entrepreneurs can also apply for public funding. In addition, the law provides strong protections for trade secrets, patents, copyright, trademarks, trade dresses, and designs. Commercial entities in Israel commonly enter into licensing agreements, including in-licensing agreements, cross-licensing agreements, and technology dispositions.

The law charges a company’s board of directors with supervision of management. Companies reduce the exposure of their directors and officers to liability using exculpation, indemnification, and insurance.

Finally, the law contemplates various scenarios for distressed companies, including voluntary liquidation, court-ordered liquidation, court-supervised voluntary liquidation and reorganization.

Keywords: Start-ups, Startups, Israel, Law, Finance, Corporate Governance, Tax, Intellectual Property, Venture Capital

JEL Classification: G24, G34, H25, K34, M13, O31, O32, O34

Suggested Citation

Kamar, Ehud and Shenhav, Ayal and Yanovsky, Shay, Start-Up Law in Israel (April 20, 2020). Forthcoming in Start-up Law edited by Alexandra Andhov and Pedro Telles, 2020, Edward Elgar Publishing Ltd., Available at SSRN: https://ssrn.com/abstract=3543356 or http://dx.doi.org/10.2139/ssrn.3543356

Ehud Kamar (Contact Author)

Tel Aviv University - Buchmann Faculty of Law ( email )

Ramat Aviv
Tel Aviv, 69978
Israel
972-3-6407301 (Phone)

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Ayal Shenhav

Gross, Kleinhendler, Hodak, Halevy, Greenberg, Shenhav & Co. ( email )

One Azrieli Center, Round Building
132 Menachem Begin Road
Tel Aviv, 6701101
Israel

Shay Yanovsky

GKH Law Offices ( email )

One Azrieli Center
Tel Aviv
Israel

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