A foreign supplier or service provider who is owed money by an Israeli company faces a practical question before a legal one: is it worth suing, and where? Most of the value is decided in the weeks before any claim is filed.
This guide is for creditors outside Israel who hold a written contract and unpaid invoices. It is general information and not advice on a specific claim.
Why Israel is usually the place to sue
A judgment is only useful if you can collect on it. An Israeli company usually keeps its bank accounts, receivables and equipment in Israel. A claim filed in an Israeli court goes directly to the place where those assets are, and avoids a second step of getting a foreign judgment recognised first. If your contract names a different court or arbitration, that choice comes first. Read our guide on the governing law and jurisdiction clause before you decide.
Check the clock: the limitation period
Under section 5 of the Prescription Law, 1958, the general limitation period for a claim that does not concern land is seven years. Section 6 says the period starts on the day the cause of action arose. Section 8 delays the start where the facts behind the claim were hidden from the plaintiff for reasons outside its control. For an unpaid invoice, count from the due date, and do not assume you have the full seven years. Contract terms, other laws and the type of claim can change the period, so confirm the date with a lawyer early.
The cheapest step is the one before the claim: know who you are suing, what they own, and how much time you have left.
Before you file: check the company
Look at the public records first. Our guide on how to check an Israeli company before you sign or sue explains the company extract, registered charges and insolvency notices. A company with no assets and a lender ahead of you is a different case from a solvent one with a disputed invoice.
Send a clear demand first
A short, dated demand letter that sets out the contract, the invoices, the amount and a deadline does two things. It gives the company a last chance to pay, and it gives a court a clean record of the dispute. Keep it factual. Do not threaten steps you do not intend to take. See also our guide on recovering money as a foreign creditor.
How the claim runs today
One point surprises many foreign creditors. The old fast procedure for a fixed sum based on a written document, known as summary procedure (סדר דין מקוצר), does not exist under the Civil Procedure Regulations, 2018. A claim for a fixed sum on a contract or invoice is now filed as an ordinary statement of claim. If the amount is up to 75,000 shekels, it runs in the fast-track procedure under regulation 78. Above that it runs as a regular claim.
The defendant files a statement of defence. In a regular claim it has 60 days from service (regulation 9(b)), and in the fast track 45 days (regulation 80(a)). Do not expect the defendant to need permission to defend, as it did under the old rules.
Security for costs
A foreign plaintiff with no assets in Israel may be asked to post security for the defendant’s costs. Regulation 157 of the Civil Procedure Regulations gives the court discretion to order it. Plan for this in your budget. Our guide on hiring Israeli counsel for a single matter covers it in more detail.
Serving the claim
The company must receive the statement of claim formally. How this is done depends on where and how the defendant is served. Read our guide on international service of process and ask your lawyer to confirm the method before filing.
After judgment
A judgment is not money. Collection against an Israeli company runs through the enforcement office, and it works best when you already know where the assets are. See enforcing a judgment in Israel and commercial debt collection in Israel. For how interest and arrears fees are added after a judgment, see interest on a judgment in Israel.
Owed money by an Israeli company and not sure what to do next? Contact RNC Group and we will tell you what the claim needs before you spend on it.
Suing an Israeli company while you are abroad? The procedure is manageable, if it is run in the right order.
Standing, service, security for costs and local counsel coordination decide whether your case moves or stalls. Distance is a logistics problem, not a barrier.
We represent foreign companies and individuals in claims against 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.