{"id":2552,"date":"2025-12-30T22:02:08","date_gmt":"2025-12-30T20:02:08","guid":{"rendered":"https:\/\/barzily.co.il\/?p=2552"},"modified":"2026-04-29T14:14:06","modified_gmt":"2026-04-29T11:14:06","slug":"the-various-corporations","status":"publish","type":"post","link":"https:\/\/barzily.co.il\/en\/%d7%9e%d7%90%d7%9e%d7%a8%d7%99%d7%9d\/%d7%94%d7%aa%d7%90%d7%92%d7%99%d7%93%d7%99%d7%9d-%d7%94%d7%a9%d7%95%d7%a0%d7%99%d7%9d\/","title":{"rendered":"The different corporations and their differences under the law"},"content":{"rendered":"

A corporation is a separate legal entity, established by one person or a group of people for a specific purpose and guided by corporate law.
\nAs such, the corporation has rights and obligations, is authorized to contract with third parties, and can be sued and sue in its name.
\nCorporations are divided into two main groups:
\nPublic corporation<\/u>\u00a0\u2013 Established by law. Under state control and operates in the public sphere, for example: the Postal Authority, the Bank of Israel, and municipalities.
\nPrivate corporation<\/u> \u2013 Its field of activity is private law. Four main forms of association are recognized in this group: company, partnership, cooperative society, and non-profit organization.<\/p>\n

Types of corporations<\/strong><\/h2>\n

Company<\/strong>
\nThis is the most common type of corporation. Founded by one person or a group of people.
\nEstablishment method:<\/em><\/u>\u00a0Submitting an application for registration with the Registrar of Companies, who examines the eligibility of the company's objectives in terms of legality, morality, and compliance with public regulations. A copy of the company's articles of association, a declaration of directors, and a declaration of owners must be attached to the registration application.\u00a0Stocks<\/a>. If the company decides to limit\u00a0Shareholder equity<\/a>\u00a0This should be stated in the regulations, and then the word is added to its name.\u00a0Ltd.<\/a>.
\nThe applicable law:<\/em><\/u>\u00a0Companies Ordinance and Companies Law.
\nHow it works:<\/em><\/u>\u00a0The company's shareholders, who constitute the general assembly, provide the capital and benefit from the company's profits after settling debts to creditors. The board of directors is appointed by the shareholders and serves as the management body, responsible for setting the company's policies.
\nA public company trades its shares on stock exchanges in Israel or abroad, while companies that are not publicly traded are considered private.<\/p>\n

Cooperative society<\/strong>
\nThis is a nonprofit corporation, based on the principles of equality and cooperation.
\nEstablishment method:<\/em><\/u>\u00a0Registration with the Registrar of Cooperative Societies. A minimum of seven members are required for its establishment.
\nThe applicable law:<\/em><\/u>\u00a0Cooperative Societies Ordinance.<\/p>\n

partnership<\/strong>
\nIt concerns a group of people who jointly run a business for the purpose of making a profit.
\nEstablishment method:<\/u><\/em>\u00a0partnership<\/a>\u00a0Registration is mandatory, but it is not a condition for its establishment and existence, which are based on an express or implied agreement. The maximum number of partners in a partnership is generally twenty.
\nThe applicable law:<\/u><\/em>\u00a0Partnerships Ordinance.
\nHow it works:<\/u><\/em>\u00a0General Partnership \u2013 its partners have unlimited liability towards third parties, with the rationale being to impose personal responsibility on the partners for negligent conduct.<\/p>\n

Limited partnership<\/strong>
\nThis partnership allows for limited liability for some of its partners. There is at least one general partner, who bears all the partnership's liabilities, and at least one partner whose liability is limited to the extent of the capital they have contributed.<\/p>\n

Non-profit organization<\/strong>
\nThis is a corporation, established as a non-profit.
\nMethod of establishment:<\/u><\/em>\u00a0At least two adult individuals are required to form an association. The condition for establishment is\u00a0Registration in the Register of Associations<\/a>\u00a0After presenting the details of the association along with an affidavit signed by its founders. For approval, the Registrar of Associations examines the legality of the association's objectives and verifies that it does not negate the existence of the State of Israel or its democratic character. The name must include the words \"Amutah\" or \"Amutah Merushamah\" (A.R.).
\nThe applicable law:<\/u><\/em>\u00a0Associations Law.
\nHow it works:<\/u><\/em>\u00a0Every association appoints a general assembly, a board of directors, and an audit committee or auditor.<\/p>\n

Legal assistance<\/strong>
\nLawyer<\/strong><\/a>\u00a0The corporate department will assist with registering the incorporation with the relevant registrar, including collecting and submitting the required documents. When establishing a non-profit organization, a lawyer will ensure that it is established for a legal purpose.
\nThe lawyer will subsequently accompany the corporation through the establishment and ongoing operational procedures, up to the dissolution of the corporation if necessary.<\/p>","protected":false},"excerpt":{"rendered":"

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