Sales Representative in Israel

Overview by

Commercial Intermediaries

Trading Companies
  • Type of Organization
In Israel, the distribution of foreign products is generally done by importers specialized in a sector or a geographic area. It is preferable to directly negotiate with the buyer, specially when this is a sale of products for supermarket distribution.
  • Main Actors
List of Israeli Trading companies.
  • Type of Organization
In Israel, it is normally necessary to go through an importer-wholesaler for penetrating the market. Generally, they demand exclusivity for the sale of products in all countries.
  • Main Actors
List of wholesalers, distributors, importers.

Using a Commercial Agent

The Advantages
A foreign operation wishing to penetrate the Israeli market can use intermediaries experienced in a particular sector of the market . Israeli industrialists generally prefer having recourse to an agent as he guarantees them an after-sales service.
Where to Be Vigilant
There is no specific legislation for distribution in Israel. This is because it is preferable to have for oneself a local advocate when the agency contract is being drawn up.
Elements of Motivation
The commission amount is an important motivating element. Generally the local agents want exclusivity.
The Average Amount of Commission
The agent commission represents between 2% and 5% of the sales turnover achieved.
Breach of Contract
The company should in advance inform the agent of a breach of contract and give him an allowance for compensation.
Finding a Commercial Agent
Global Representation
Find Sales and Distribution Service Providers in Israel on

Setting Up a Commercial Unit

The Advantages
A costly establishment.
Where to Be Vigilant
Setting up a business in Israel without taking prior advice increases the risks of loss. It is to be foreseen specially in a logic of long term.
Different Possible Forms of Settlement
  • A Representative Office
The trade representative office does not have a judicial legal status. Hence it cannot conclude contracts. However, it is a means to have a first contact of the Israeli market before planning an establishment. The advantages of this structure are of more flexiblity, significantly less costs and significantly less administrative steps (no registration with the trade register). The liason office does not have to pay Israeli income tax.
  • A Branch Office
A branch can take and execute orders and carry out a marketing or advertising program, recruit the sales force and execute promotional activities. It is considered as an extension of the company, in the country. The company has one month to register the branch at the trade register and pay the registration fees.
  • A Company
It is possible for a foreign company to establish an Israeli subsidiary. It enables the parent company to retain the administration and management.


Evolution of the Sector
Franchise has become a widespread sales model in Israel.This is particularly the case in fast food restaurants.
Some Big Franchises
Mc Donald's, fast food
Ben and Jerry's , Ice Cream
Toys'r'us, Toys
Office Depot, office supplies
For Further Information
Centre for Franchise Promotion in Israel

Finding Assistance

Export Trading Companies
List of trading companies
Recommended Resource
Partel Consulting
Office of consultant specialised in setting up of a company in Israel by French or Francophones. It outlines the services which it offers and specially gives interesting information on different aspects of company creation, investment and the banking system.
Find more on about Selling to Israel.

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  • U.S. Commercial Service Israel

    U.S. Department Of Commerce, Israel