Licensing Requirements and Procedures
The procedures and requirements for obtaining licensing to conduct
business operations in Palestine depend on the type of operation
chosen by the investor. For example, a new travel agency would
have to submit its application to PIPA in order to obtain the proper
licensing and satisfy all the legal requirements. PIPA will process
the application through the relevant ministry in order to facilitate
the overall procedure for the investor.
Company Registration Procedures and fees for local and foreign
companies
Registration procedures for companies and partnerships are generally
the same. To register a company in the West Bank, one registers
with the Companies Registrar at the Ministry of Economy and Trade,
in Gaza, with same at the Ministry of Justice.
Local Companies
Foreign Companies
Local Companies
Local companies in the West Bank and Gaza must:
1. Register with the Companies Registrar and accordingly be issued
a Certificate of Incorporation. To register, an investor should
complete and submit to the Registrar an application form that
includes the name, type and purpose of the company as well
as the name of the authorized agent of the company. The following
documents must be attached to the application form:
a. The Articles of Association: this document establishes the
internal by-laws of the company and must be filed with the
Companies Registrar. Private companies must include the following
provisions
in their Articles of Association:
• A restriction of transferability of shares
• A limitation of the number of shareholders to 50
• A stipulation that the shares and/or debentures of the company
will not be offered to the public
b. Memorandum of Association: this document establishes
the identity of the company, and states the following information
(The Memorandum
of Association must be signed by the authorized agent of
the company):
• Name of company, to be cleared with the
Registrar to ensure that the name is unique and not similar to
any other registered
company in that jurisdiction.
• Purpose of the company
• Name, nationality, identification information, and the number
of shares of each partner (number of shares subscribed
by each must be at least one)
• Length of time the company has been in business
• Authorized signatory/ agent who will manage the daily activities
and affairs of the company
2. Issue a minimum number of shares based on the type
of company in accordance with the law.
3. Have a minimum prescribed amount of capital that
is based, by law, on the type of company.
4. Submit Registration fees: 0.1% of the company's
provisional capital plus $75.00. There is also
a charge of $25.00
for each signature, and various other certifications,
publishing
and stamp
fees. These fees apply to both the West Bank and
Gaza.
5. Have audited financial reports and statements
prepared in accordance with internationally recognized
accounting
procedures.
6. Obtain tax/ VAT numbers upon registration
of the company.
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Foreign Companies
The foreign company must file copies of its certificate of incorporation,
memorandum and articles of association authenticated by the
Registrar located in the place of its incorporation. The documents
must be translated into Arabic, and should include the nationality,
address and initial stock holding each of the founding shareholders
of the company as well as the amount of the authorized share
capital of the company upon its establishment.
Along with the registration application a foreign company must
provide a letter stating the names, addresses and nationalities
of the directors of the company and of others who have been granted
signatory rights on behalf of the company.
Registration fees for foreign companies are:
• 250 J.D for the company which have a capital less than 1 million.
• 500 J.D for the company which have a capital more than 1 million.
Other certification, publishing and stamp fees are the same
for both local and foreign companies.
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