Most losses on an Israeli contract are visible before the contract is signed. The signs sit in public records, and almost nobody reads them.
This guide covers what a foreign business can check about an Israeli company before it signs, ships goods or funds a lawsuit. It uses public registers only. It is general information and not a substitute for advice on a specific counterparty.
Start with the company registry
Israel’s Companies Registrar keeps public registers. Under section 43 of the Companies Law, 1999, the registers kept by the Registrar are open to the public, and any person may inspect them and obtain copies of what is recorded in them.
The standard starting point is the company extract. According to the explanatory notes to a Companies Law amendment bill, the extract shows, among other things, the company’s address, its capital, and the identity of its directors and shareholders. Get the exact legal name and company number first. Trading names, English names and Hebrew names often differ, and a check on the wrong entity tells you nothing.
Compare what the registry shows with what the other side told you. A different registered address, a different director or a different owner than the one who negotiated with you is not proof of a problem. It is a question to ask before you sign.
Check who already holds security over the assets
A company can pledge its assets to a lender. If it does, the lender may stand ahead of you when the money runs short. Under section 178 of the Companies Ordinance, certain charges created by a company must be registered with the Registrar. These include charges on real estate or an interest in it, charges on movable property that stays with the company, and charges over receivables. A floating charge securing debentures is on the same list.
The registration deadline is generally 21 days from the day the charge was created. For a charge on land in Israel, the 21 days run from the day the Land Registrar approved the transaction for registration. A charge that is not registered on time is void against a liquidator and against the company’s creditors. The debt itself remains valid and the money becomes payable immediately (section 178(c)).
A company can look solvent on paper while its main assets are already pledged to a lender.
The practical point is simple. If the registry shows the main assets are already charged, an unsecured claim may be worth far less than its face value. Better to know that before you extend credit, not after you win.
Look at the land registry
Under section 124 of the Land Law, the land registry books are open to the public. Anyone can ask for a registry extract on a property, including one owned by a company, for a fee. The extract shows the registered owner and the registered rights over the property, such as mortgages, attachments and warning notes recorded against it.
There is a limit. The extract itself is open, but viewing the underlying documents used to register a transaction is not free access. The applicant has to show a direct connection to those documents. For a pre-contract check, the extract is usually what matters.
Real estate is often the first asset a creditor looks for. Knowing in advance whether a company owns property, and whether it is mortgaged, shapes both the contract terms and the recovery plan. See also our guide to asset recovery against Israeli debtors.
Check for insolvency or liquidation proceedings
Under Israel’s Insolvency and Economic Rehabilitation Law, 2018 and its regulations, the Commissioner, the Ministry of Justice official in charge of these proceedings, publishes notices on the Ministry’s website, including notice that an application for an order opening proceedings was filed and notice that an order was granted. The Companies Registrar’s website links to the Ministry’s publications on corporate insolvency proceedings. A voluntary winding up under the Companies Law is recorded by the Registrar as a note and published on the same Ministry site.
A company in these proceedings must state the words “in rehabilitation” or “in liquidation” next to its name on its documents and publications (section 27 of the Law). It must also say so prominently on the home page of its website, if it has one, throughout the proceedings (regulation 38).
If a company in proceedings is on the other side of your deal, the position changes. Your claim generally becomes one of many in a collective process rather than a direct claim for payment.
What public records cannot tell you
The registers show formal facts. They do not show cash flow, whether customers pay the company on time, how many other creditors are waiting, or whether assets can actually be reached. A clean registry extract is a starting point.
That is why a registry check works best alongside a lawful assessment of the counterparty: who is behind it, how it pays, and what a recovery would look like if it did not. We describe this approach on our page about assessing an Israeli debtor.
A short checklist before you sign
- Identity: exact legal name, company number, registered address.
- People: directors and shareholders match the people you are dealing with.
- Charges: which assets are already pledged, and to whom.
- Property: what real estate the company owns, and whether it is mortgaged.
- Proceedings: no insolvency or liquidation notice, and no application pending.
- Contract: a clear governing law and jurisdiction clause and well-drafted commercial terms.
If the company already owes you money
The same checks are the first step of a recovery plan, and they cost little compared with a lawsuit. If you hold a claim against an Israeli company, read our guides on commercial debt collection in Israel, on recovering money as a foreign creditor, and on enforcing a foreign judgment in Israel.
Not sure what you are dealing with? Contact RNC Group and we will review the counterparty with you before you sign or file.
Signing with an Israeli company? A 20-minute check beats a two-year lawsuit.
Registry status, liens, litigation history and ownership reveal most bad actors before you commit. The checks are public; knowing where to look is the work.
We run counterparty due diligence for deals and disputes with Israeli companies. Reach us on WhatsApp or by email.
This article provides general information only and does not constitute legal advice. It does not create an attorney-client relationship, and readers should obtain legal advice suited to the facts, jurisdictions, and procedural posture of their specific matter.