Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the ISA's licence, including banking and payment rails.
Get an investment license in Israel.
One law, three licences. The Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law 5755-1995 licenses investment advisers, investment marketers and portfolio managers through the Israel Securities Authority - individuals and companies alike, with portfolio management by an individual allowed only as an employee of a licensed company. A licensed corporation holds NIS 200,000 of equity at all times, indexed to the consumer price index since November 1998, and pays NIS 721 to apply and NIS 4,984 a year. No statute sets a decision period and no investor-compensation scheme appears on the regulator's pages - we say both plainly. Corporate tax is 23%, and the ISA counted 17 exchange members and 25 fund managers at the end of 2024.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Israel in brief
Three licences, one capital figure, and no clock.
Israel licenses the advice-and-management side under the Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law 5755-1995. Section 2 draws three licences: the investment adviser, who advises independently; the investment marketer, whose advice is tied to product providers; and the portfolio manager, who runs discretionary mandates - and an individual may manage portfolios only as an employee of a licensed company. Companies qualify under section 8: no underwriting, equity at the regulated figure, professional-liability insurance, regulated work done only by licensees, no convicted officers. Individuals qualify under section 7 - adult, Israeli resident, no conviction, examinations passed, an internship of six months for an adviser or marketer and nine for a portfolio manager (regulation 19(b) of the 1997 Regulations). Execution sits outside this law: exchange transactions need TASE membership, underwriting the ISA register (Securities Law section 56), fund management an approval under section 13 of the Joint Investment Trust Law 5754-1994.
The capital floor is a single figure: regulation 2 of the Equity Capital and Insurance Regulations 5760-2000 sets NIS 200,000 for every licensed corporation, indexed each 1 January to the CPI against the November 1998 base - the current indexed sum is confirmed with the ISA before filing. Fees are printed to the shekel in the ISA's notice of 21 January 2025: NIS 721 for a company's application, NIS 4,984 a year for an adviser or marketer company, NIS 4,984 to NIS 598,243 for a portfolio manager by AUM. Two candid points. No section of the Law or the Regulations sets a decision period; section 6 guarantees notice and a hearing before a refusal, nothing more. And no investor-compensation scheme appears on the ISA's pages. Corporate tax is 23%, VAT 18% since 1 January 2025, dividends to a foreign company bear 23%. We build the file from Tel Aviv.
Three ISA licences under the Investment Advice Law 5755-1995 - adviser, marketer, portfolio manager; individuals manage portfolios only as employees of a licensed company. NIS 200,000 of CPI-indexed equity for a corporation, internships of six or nine months, NIS 721 to apply and NIS 4,984 a year.
No statutory decision period and no investor-compensation scheme on the ISA's pages; corporate tax 23%, VAT 18% from 2025, 23% withholding on dividends to a foreign company. Built end to end from Tel Aviv.
The two licences
The portfolio management company - or the adviser and marketer.
One law prices both at NIS 200,000 of indexed equity: the portfolio manager runs discretionary mandates through licensed employees who served a nine-month internship; the adviser or marketer advises after six. We fix the licence first, then build the company to section 8.
The portfolio management company - or the adviser and marketer.
01 - PORTFOLIO MANAGEMENT COMPANY
The discretionary manager
Discretionary management of client portfolios under section 2 - a licensed company holding NIS 200,000 of CPI-indexed equity (regulation 2), professional-liability insurance with a year of run-off (regulations 3-4), every mandate run by an individual licensee who is its employee, an annual ISA fee of NIS 4,984 rising to NIS 598,243 with assets under management, and client accounts held in the client's own name.
Discretionary management of client portfolios under section 2 - a licensed company holding NIS 200,000 of CPI-indexed equity (regulation 2), professional-liability insurance with a year of run-off (regulations 3-4), every mandate run by an individual licensee who is its employee, an annual ISA fee of NIS 4,984 rising to NIS 598,243 with assets under management, and client accounts held in the client's own name.
- ✓Discretionary mandates - section 2
- ✓NIS 200,000 equity, CPI-indexed - regulation 2
- ✓Licensed individuals as employees only
- ✓Nine-month internship - regulation 19(b)
- ✓Annual fee NIS 4,984-598,243 by AUM
- ✓Client accounts in the client's name
02 - ADVISER · MARKETER
NIS 721 to apply · NIS 4,984 a yearThe advice licence
Investment advice, independent (adviser) or tied to product providers (marketer), for an individual or a company - the same NIS 200,000 equity for a corporation, foundation and professional examinations under regulation 7, a six-month internship, NIS 362 to apply as an individual and NIS 721 as a company, then NIS 759 or NIS 1,518 a year for the individual and NIS 4,984 for the company.
Independent advice (adviser) or advice tied to providers (marketer), individual or company - regulation 7 examinations, six-month internship, NIS 362 or NIS 721 to apply.
- ✓Adviser - independent advice
- ✓Marketer - advice linked to providers
- ✓Individual or company licence
- ✓Six-month internship - regulation 19(b)
- ✓Application NIS 362 individual · NIS 721 company
- ✓Annual NIS 759 / 1,518 individual · NIS 4,984 company
Fees per the ISA notice of 21 January 2025 (2025 amounts, after the temporary 15% reduction the notice applies); the 2026 amounts and the current indexed equity figure are confirmed with the ISA before filing.
Why Israel
Six reasons managers license with the ISA.
A short statute with a single capital figure and printed fees - and two gaps a founder should know before the first call.
✓
One law, three licences
Adviser, marketer, portfolio manager under section 2 of the 1995 Law - the scope is chosen by licence, not assembled from a menu of business units.Three licences, section 2.
✓
A single capital figure
NIS 200,000 for every licensed corporation under regulation 2, CPI-indexed - a fixed sum, no K-factors, no net-capital ratio to run each month.NIS 200,000, no K-factors.
✓
Fees to the shekel
NIS 721 to apply as a company, NIS 4,984 a year, NIS 543 per examination - printed in the ISA's notice of 21 January 2025.NIS 721 · NIS 4,984 a year.
✓
The qualified-client exemption
Section 3(a)(11) lifts the licence requirement for services to a qualified client of the First Schedule; section 3(a)(3) for up to five clients a year.Section 3(a)(11) exemption.
✓
23% on profits, 23% on dividends out
Corporate tax 23% since January 2020; dividends to a foreign body of persons withheld at 23% under the January 2026 booklet, treaties may reduce.Profits and outbound dividends.
✓
No clock, no compensation scheme
The Law fixes no decision period, the ISA publishes no statistics, and its pages carry no investor-compensation scheme - facts to plan around, not against.No clock, no compensation scheme.
How it compares
How Israel differs from other routes.
The honest comparison: a domestic licence with one capital figure and no clock - against MiFID passports with tiered capital and six-month statutes.
Israel vs other jurisdictions
| Feature |  Israel | Other jurisdictions |
|---|---|---|
| Regime | Investment Advice Law 5755-1995 - ISA | MiFID II - CySEC, MFSA |
| Capital | NIS 200,000, CPI-indexed since 1998 | €75k-€750k IFD tiers |
| Scope | Domestic · qualified-client exemption · no passport | 30 EEA states |
| Timeline | No statutory clock | 6 months statutory Malta · 8-14 months Cyprus realistic |
Regime
IsraelInvestment Advice Law 5755-1995 - ISA
Other jurisdictionsMiFID II - CySEC, MFSA
Capital
IsraelNIS 200,000, CPI-indexed since 1998
Other jurisdictions€75k-€750k IFD tiers
Scope
IsraelDomestic · qualified-client exemption · no passport
Other jurisdictions30 EEA states
Timeline
IsraelNo statutory clock
Other jurisdictions6 months statutory Malta · 8-14 months Cyprus realistic
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Israel | ISA - adviser / marketer / portfolio manager | 23% | NIS 200,000 indexed · no passport |
 Cyprus | CySEC CIF | 12.5% · 15% large | IFD €75k-€750k, EU passport |
 Türkiye | CMB - intermediary institution / PYŞ | 30% capital-market institutions | 45M-380M TL · PYŞ 50M TL (2026) |
 Malta | Investment services licence - MFSA | 35% · refund on distribution | IFD €75k-€750k, art. 6 six months |
IsraelLicense typeISA - adviser / marketer / portfolio manager
Taxation23%
RequirementsNIS 200,000 indexed · no passport
CyprusLicense typeCySEC CIF
Taxation12.5% · 15% large
RequirementsIFD €75k-€750k, EU passport
TürkiyeLicense typeCMB - intermediary institution / PYŞ
Taxation30% capital-market institutions
Requirements45M-380M TL · PYŞ 50M TL (2026)
MaltaLicense typeInvestment services licence - MFSA
Taxation35% · refund on distribution
RequirementsIFD €75k-€750k, art. 6 six months
Before you apply
Requirements for the Israeli licence.Requirements for the licence.
The ISA licenses people first and the company around them. The checklist below is what a passing file contains.
01
Licence per activity - adviser, marketer or portfolio manager under section 2 of the Investment Advice Law 5755-1995; the company holds its licence and every individual doing regulated work holds his own.
02
Equity - NIS 200,000 at all times for a licensed corporation (regulation 2 of the Equity Capital and Insurance Regulations 5760-2000), indexed each 1 January to the CPI against the November 1998 base and rounded to NIS 1,000; the current figure is confirmed with the ISA.
03
Insurance - professional-liability cover for negligence toward clients and, for a company, employee breach of trust, with one year of run-off after termination (regulations 3-4); no NIS minimum is printed.
04
Licensed individuals - adults, Israeli residents, no conviction, examinations passed and the internship served: six months for an adviser or marketer, nine for a portfolio manager (section 7; regulation 19(b)).
05
Examinations - foundation papers in securities law, accounting, statistics and finance, and economics, then professional papers A and B (regulation 7 of the 1997 Regulations); NIS 543 per sitting in 2025.
06
Company conditions - no underwriting, regulated activity only through licensees, no convicted or sanctioned officers (section 8).
07
Portfolio management by individuals - only as an employee of a licensed company (section 2); a sole practitioner advises or markets, but does not manage.
08
Fees - NIS 721 for a company's application (NIS 362 individual, NIS 543 partnership); annual NIS 4,984 for a company, NIS 4,984 to NIS 598,243 for a portfolio manager by assets under management (ISA notice of 21 January 2025).
09
Client accounts - a portfolio manager operates accounts held at banks or exchange members in the client's own name, alongside the professional-liability insurance of regulations 3-4.
10
What the law leaves open - no decision period; compliance-officer, minimum-staff and director-residency expectations are confirmed with the ISA per structure; section 6 guarantees notice and a hearing before any refusal.
01
Licence per activity.
02
NIS 200,000 indexed equity.
03
Liability insurance, run-off.
04
Licensed, resident individuals.
05
Regulation 7 examinations.
06
Section 8 company conditions.
07
PM only as employee.
08
Fees per 2025 notice.
09
Client accounts in client's name.
10
No clock - s.6 hearing.
Reflects the Investment Advice Law 5755-1995, the 2000 and 1997 Regulations and the ISA fee notice of 21 January 2025. Indexed amounts and 2026 fees are confirmed with the ISA before filing.Law 5755-1995 + 2000 and 1997 Regulations, as of 2026.
How it works
From first call to the ISA licence.
01
Licence and vehicle
Adviser, marketer or portfolio manager; company or individual; the qualified-client exemption tested first - fixed in writing.Fixed in writing.
02
Company and capital
Israeli company formed, NIS 200,000 indexed equity in place, professional-liability insurance bound under regulations 3-4.NIS 200,000, insured.
03
Licensed people
Foundation and professional examinations under regulation 7, the internship of six or nine months under regulation 19(b), or licensed hires.Exams and internships.
04
The ISA application
Filed under the 1997 Regulations with the fee of NIS 721; no statutory clock - section 6 guarantees a hearing before any refusal.No clock; s.6 hearing.
05
Licence and launch
Annual fee paid, client accounts at banks or exchange members, first mandates - managing Israeli money.Managing Israeli money.
Quick facts
RegulatorISA
LawInvestment Advice Law 5755-1995
EquityNIS 200,000 · CPI-indexed
Application feeNIS 721 company · NIS 362 individual
Annual feeNIS 4,984 · up to NIS 598,243 PM
Internship6 months · 9 months PM
Statutory clockNone · s.6 hearing before refusal
Corporate tax23%
No section sets a period and the ISA publishes no statistics. The lever we hold is a file with examinations passed, internships served and insurance bound before submission.
On the ground in Israel
Run from our Tel Aviv office.
Prifinance - Israel
Tel Aviv · Israel
Tel Aviv, Israel
01
Licence and vehicle
Adviser, marketer or portfolio manager, company or individual - and whether the section 3(a)(11) qualified-client exemption fits instead of a licence at all.Exemption tested first.
02
The section 8 company
Israeli company with NIS 200,000 of indexed equity, professional-liability insurance bound with its year of run-off, officers vetted for convictions.Equity and insurance.
03
Licensed people
Examinations and the six- or nine-month internship planned to the calendar - or licensed hires where the calendar is short.Exams, internships, hires.
04
The ISA file and launch
Application under the 1997 Regulations with the NIS 721 fee, client accounts opened at banks or exchange members, first mandates onboarded.Complete at submission.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Good to know
Taxation of investment firms in Israel.
A flat 23% with a matching 23% on dividends to a foreign company - and VAT that financial institutions pay in a different form.
Corporate tax 23%
The rate since January 2020, per the Ministry of Economy's Invest in Israel pages - a single figure, with the priority-enterprise rates the only variation printed.Flat since 2020.
Dividends 25% / 30% / 23%
25% standard, 30% to a substantial shareholder, 25% to a foreign individual and 23% to a foreign body of persons - the Israel Tax Authority's January 2026 deductions booklet; treaties may reduce.25% / 30% · 23% foreign co.
VAT 18% since 1 January 2025
Raised from 17% by Interpretation Directive 01/2025; financial institutions pay profit tax and salary tax in place of VAT under the VAT Law, and whether a licensed company falls within that class is confirmed per case before the fee model is built.Profit tax for finance.
Priority enterprises 5-16%
The Ministry of Economy prints 5% to 16% for Special Priority and Priority Enterprises - a status tested per case, never assumed for a licensee.Tested, not assumed.
No sector levy beyond ISA fees
NIS 4,984 a year for a company, NIS 4,984 to NIS 598,243 for a portfolio manager by assets under management, NIS 23,465 to NIS 35,190 for a fund manager.No sector levy beyond.
A capital floor that moves with prices
The NIS 200,000 equity floor is re-indexed to the CPI each 1 January under regulation 10 - the figure in the quote is the year's figure, not the 2000 text.CPI each 1 January.
Tax summary
Corporate tax23%
Dividend withholding25% · 30% substantial · 23% foreign company
VAT18% from 1 Jan 2025
Priority enterprises5-16%
Financial institutionsProfit tax in place of VAT
*Figures as of 2026 per Israeli law as printed by Invest in Israel and the Israel Tax Authority's January 2026 deductions booklet. Treaty and founder-level outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Israeli company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed firm.
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Israel · ISA
Launch your investment firm in Israel with expert support.
Full-service assistance - from the Israeli company and the section 8 file to the ISA licence, licensed staff, insurance and launch - run through our Tel Aviv office.
Get a consultation →Free legal opinion
Is Israel the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Israeli investment licence, answered.
What licence does an investment firm need in Israel?+
One of three under section 2 of the Investment Advice Law 5755-1995 from the ISA: investment adviser, investment marketer or portfolio manager. Execution needs Tel Aviv Stock Exchange membership, underwriting the ISA register under section 56 of the Securities Law, and fund management the ISA's approval under section 13 of the Joint Investment Trust Law.
What capital is required?+
NIS 200,000 of equity at all times for a licensed corporation under regulation 2 of the Equity Capital and Insurance Regulations 5760-2000, indexed to the CPI each 1 January against the November 1998 base. The current indexed figure, the fund-manager minimum and the TASE member minimum are confirmed with the regulator and the exchange before the quote.
Can an individual manage portfolios?+
Only as an employee of a licensed company - section 2 is explicit. An individual may hold an adviser or marketer licence in his own name after the examinations and a six-month internship; the portfolio-manager internship is nine months (regulation 19(b)).
How long does the ISA take?+
No section of the Law or the 1997 Regulations sets a decision period, and the ISA publishes no processing statistics. Section 6 guarantees notice and a hearing before a refusal. The file we control - examinations, internships, insurance, section 8 conditions - is complete at submission.
What does licensing cost?+
Per the ISA notice of 21 January 2025: NIS 362 to apply as an individual, NIS 543 as a partnership, NIS 721 as a company, NIS 543 per examination; annual fees of NIS 759 or NIS 1,518 for individuals, NIS 4,984 for a company, and NIS 4,984 to NIS 598,243 for a portfolio manager by assets under management.
Can a foreign firm serve Israeli clients without a licence?+
Only inside the exemptions: services to a qualified client listed in the First Schedule (section 3(a)(11)) and advice or management for no more than five clients a year (section 3(a)(3)). There is no passport; the foreign-ownership position of a licensed company is confirmed per structure.
Is there an investor-compensation scheme?+
The ISA's pages carry none. Client portfolios are held at banks or exchange members in the client's own name, and a licensed company carries professional-liability insurance with a year of run-off under regulations 3-4 - that is the protection the Regulations print.
How are Israeli investment firms taxed?+
Corporate tax 23% since January 2020; dividends withheld at 25%, 30% to a substantial shareholder, 23% to a foreign company, subject to treaty; VAT 18% since 1 January 2025, with financial institutions paying profit tax and salary tax in its place.
Israel or Cyprus for a new firm?+
Cyprus buys the 30-state EU passport at 12.5% tax and IFD capital of €75,000 to €750,000, on a practised 8-14 month rhythm; Israel is a domestic licence at NIS 200,000 with no clock and no passport, for firms whose clients are in Israel. Serving Israeli retail, license in Tel Aviv; serving Europe, start in Limassol. We model both.
Why Prifinance for Israel?+
We test the qualified-client exemption before assuming a licence, build the section 8 company with indexed equity and insurance bound, and plan the examinations and internships to your calendar - run from our Tel Aviv office with Istanbul behind it for the holding structure.
What licence?+
Adviser, marketer or PM.
Capital?+
NIS 200,000 indexed.
Individuals?+
PM only as employee.
How long?+
No statutory clock.
Cost?+
NIS 721 · NIS 4,984 a year.
Without a licence?+
Qualified clients only.
Compensation?+
None on the ISA's pages.
Taxes?+
23%; VAT 18%.
Or Cyprus?+
Domestic vs passport.
Why you?+
Exemption tested first.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
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Google
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Israel Securities Authority or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.