Opening an Australian company from Israel

An Israeli company or founder can own all the shares in an Australian Pty Ltd, but the company needs at least one director who ordinarily lives in Australia, under section 201A of the Corporations Act. Australia and Israel have had a comprehensive tax treaty in force since 6 December 2019. Israel is not on the FIRB list of "certain FTA partners", so standard private investor thresholds apply to Israeli acquirers. On the practical side, Israel is an Apostille Convention member, and Sydney runs 7 to 9 hours ahead of Israel depending on the season.

Who is actually investing?

Before anything else, work out which entity will hold the Australian shares. Israeli technology groups are often owned by a holding company formed elsewhere, frequently in the United States, with the Israeli company as the operating or R&D arm. The answer changes three things:

• FIRB thresholds. The 2026 FIRB thresholds table applies the threshold of the jurisdiction where the immediate acquirer was formed. A US-formed parent counts as a US investor, which is an FTA partner. An Israeli-formed parent doesn't.
• Tax treaty access. Dividends, interest and royalties are taxed under the treaty between Australia and the country where the recipient is resident. An Israeli parent uses the Australia–Israel treaty; a US parent uses the Australia–US treaty.
• Who signs. The shareholder resolutions, the consent to become a member and the ownership chart for AML/CTF checks all come from the entity that holds the shares.

If your group is US-led, our United States page covers the Delaware side. Founders setting up on their own, without a corporate parent, should start with registering a company in Australia as a foreigner.

The 2019 tax treaty

Treasury's income tax treaties list records a comprehensive tax treaty in force with Israel. It was signed on 28 March 2019, given effect by the Treasury Laws Amendment (International Tax Agreements) Bill 2019, and entered into force on 6 December 2019. It is the only agreement with Israel on that list.

Because the treaty is recent, older group structure memos written before 2019 may assume no treaty relief at all. Have them reviewed. The withholding rates that apply to dividends, interest and royalties depend on the facts, so ask your tax adviser to confirm them. We don't provide tax advice.

FIRB for Israeli acquirers

Israeli private investors fall into the "not from certain FTA partners" rows of the 2026 thresholds. Points that matter for a typical Israeli expansion:

Starting a new Australian subsidiary from scratch is usually well below these figures. Buying an Australian company, taking a lease over sensitive land such as a data centre site, or investing in defence, encryption or telecommunications is different. Those are sensitive sectors, and a national security business is screened from $0 for all investors. Speak to a FIRB adviser early, and read FIRB approval basics.

Certifying and translating documents

Israel has been a party to the Apostille Convention since 14 August 1978, according to the HCCH status table. That gives Israeli directors a straightforward option for the Director ID paper application: ABRS accepts copies of identity documents certified by apostille from the competent authority of a member country, attached to the copies and sent with the form.

The alternatives are a notary public, or certification by the Australian Embassy in Israel using DFAT's standard wording. Whichever you use:

• translate any document in Hebrew or Arabic into English through an approved translation service, and include a certified copy of the original-language document;
• send certified copies only; ABRS doesn't return what you post;
• start early, because the paper route takes longer than applying online with Australian identity documents.

Each director must apply personally. A director who is also moving to Australia should check whether they can apply online once they have Australian documents. The step-by-step process is in our Director ID guide.

Running a board across a 7 to 9 hour gap

Both countries change their clocks, in opposite seasons, so the gap moves through the year:

Perth stays on UTC+8 all year. Brisbane stays on UTC+10.

In practice, a live board call fits Israeli morning and Australian late afternoon or evening. Most decisions run as overnight signing rounds: the Australian side circulates a resolution at the end of its day, Israeli directors sign during theirs, and it is complete by the next Australian morning. Under the default rules, a circulating resolution is only passed when every director entitled to vote has signed, so one late signature delays the whole round. A constitution can adjust that; see company constitutions.

Pitfalls specific to Israeli expansions

• Relying on an Israeli director to meet the residency rule. Only a director who ordinarily lives in Australia counts. A founder spending a few months in Sydney may not.
• Assuming the parent's employment model works locally. Australian staff are employed under Australian law, with PAYG withholding, Single Touch Payroll and Payday Super from the first pay run. See hiring employees in Australia.
• Leaving intellectual property arrangements implicit. Tech subsidiaries often use code and IP owned by the Israeli or US entity. Document the licence and the transfer pricing with your advisers before revenue starts. Our notes for SaaS and tech subsidiaries go further.
• Under-preparing the ownership pack. Venture-backed groups have preferred shares, option pools and several funds above them. AML/CTF-regulated providers must identify individuals with 25% or more, or control, so a cap table alone won't be enough.

Working with us

Our director lives in Australia, holds a Director ID and works inside a written decision protocol, so ownership and commercial decisions stay with your team. If you aren't sure whether you need a resident director or a different structure, try the eligibility checker. Tax, legal and FIRB advice stays with your own advisers.

General information as at 27 October 2026. It isn't legal, tax or FIRB advice; check your position with an adviser.

General information about Australian law and practice, not legal or tax advice for your circumstances. Check the official sources, or ask your adviser, before you act.