Business Services in India and Israel: Essential Support for Economic Growth
A brief review of financial and legal systems in the two countries
India and Israel share a dynamic economic relationship, with growing trade and investment between the two nations. As businesses expand across borders, the demand for high-quality business services – including legal support, accounting, banking, and consulting – has increased significantly. These services play a crucial role in facilitating smooth market entry, regulatory compliance, financial management, and strategic decision-making.
Banking Systems in India and Israel
The Banking System in Israel
Israel has a stable, modern banking system that serves both business and household sectors. Banking costs and service fees are relatively moderate compared to global standards. The Israeli banking sector comprises 12 banks, 4 foreign banks, 6 credit card companies, 1 financial institution, and 2 joint service companies. In recent years, direct, online banks have begun capturing a small market share.
Top Banks in Israel
- Bank Leumi – One of Israel’s largest banks, providing corporate banking and investment services.
- Bank Hapoalim – A leader in trade finance, business lending, and fintech collaborations.
- Mizrahi Tefahot Bank – Specializes in real estate financing and corporate lending.
- Israel Discount Bank – A key institution for commercial banking solutions.
- First International Bank of Israel (FIBI) – Offers a range of business banking services.
- Mercantile Discount Bank
- Bank Yahav for Government Employees
- Bank of Jerusalem
- Bank Massad Ltd
The Banking System in India
India’s banking system is diverse, consisting of the Reserve Bank of India (RBI), commercial banks, cooperative banks, and development banks. It includes 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1,485 urban cooperative banks, and 96,000 rural cooperative banks.
Top Banks in India
- HDFC Bank – India’s largest private bank, offering corporate and retail financial services.
- State Bank of India (SBI) – The largest bank, providing trade finance, loans, and treasury services.
- ICICI Bank – Specializes in corporate finance, investment banking, and global transactions.
- Axis Bank – Offers business loans, SME banking, and treasury solutions.
- Kotak Mahindra Bank – A leading player in investment and wealth management.
- IndusInd Bank
- Yes Bank
- Punjab National Bank
- Bank of Baroda
- Bank of India
Legal Services: Navigating Business Regulations
Legal System in Israel
Israel’s legal system is based on British law but has been influenced by American and German legal principles. Foreign businesses can operate under several structures, including:
- Subsidiary – An Israeli company wholly or partially owned by a foreign entity.
- Branch – A foreign company registered in Israel.
- Sole Proprietorship
- Israeli or Foreign Partnership (general and limited)
- Non-Profit Organizations (NGOs)
- Cooperative Societies
Registering a company in Israel is a straightforward process. A foreign company opening a branch in Israel must submit its Articles of Association, the names of directors, and other required details to the Registrar of Companies. Documents should be translated into Hebrew, Arabic, or English.
Legal System in India
India’s legal system is based on English Common Law but also incorporates federal elements, with distinct central and state government laws. The judiciary includes tribunals, commissions, and quasi-judicial authorities, such as the National Company Law Tribunal, Consumer Disputes Forums, and Competition Commission.
Incorporation Procedure in India
Companies operating in India can structure themselves as:
- Private Limited Company (PLC)
- Partnership or Limited Liability Partnership (LLP)
- Branch Office, Liaison Office, or Project Office
- Public Limited Company
The incorporation process is mostly online and requires a digital signature, two directors, and two shareholders (who may be the same individuals). Opening an international bank account is also necessary to start operations.
Leading Law Firms in India and Israel
Top Law Firms in Israel
- Meitar Law Offices – Specializes in high-tech, cross-border transactions, and litigation.
- Herzog Fox & Neeman – A top-tier firm focusing on technology, venture capital, and international trade.
- Fischer (FBC & Co.) – Strong in real estate, corporate law, and dispute resolution.
- Goldfarb Gross Seligman & Co. – Experts in corporate law, capital markets, and regulatory compliance.
- M. Firon & Co.
- Shibolet & Co.
- Gornitzky & Co.
- Naschitz Brandes Amir
- Yigal Arnon & Co.
- Gross Law Firm
Top Law Firms in India
- Shardul Amarchand Mangaldas & Co.
- Trilegal India
- Khaitan & Co.
- Sagar Associates
- DSK Legal
- AZB & Partners
- Anand & Anand
- Vaish Associates
- Phoenix Legal
- Desai & Dewanji
Venture Capital and Foreign Investment
Israel has over 300 investments in India, mainly in high-tech but also in agriculture, consumer brands, and manufacturing. Israeli companies are involved in sectors like water technology, real estate, agriculture, chemicals, and pharmaceuticals.
To attract foreign investment, Israel offers cash grants, tax benefits, government-guaranteed loans, R&D incentives, and deferred VAT payments. No minimum capital investment is required to establish a local private company.
Venture Capital in Israel
Israel has a thriving venture capital industry with over $12.6 billion under management, playing a key role in high-tech funding. Leading Israeli VC firms include:
- Pitango
- Vertex Ventures Israel
- 83North
- JVP
- Viola
- Magma Venture Partners
- Gemini Israel Ventures
- Genesis Partners
As trade and investment between India and Israel continue to grow, business services play a vital role in enabling smooth market entry, compliance and financial management. From legal expertise and financial advisory to banking and consulting, companies in both nations rely on top-tier service providers to navigate the complexities of cross-border operations. By leveraging these resources, businesses can unlock new opportunities and drive sustainable growth in the evolving global economy.
