Some of the benefits stated in the article:
1) Tax
Not long ago Israeli founders faced a 50 percent or higher tax on the gain from the sale of their shares by either initial public offering (IPO) or acquisition (M&A). Incorporating in Delaware opened up planning possibilities, some more legal and successful than others, but it at least gave hope to avoiding the 50 percent tax.
NOT ANYMORE – One reason: the low rate of corporate tax in Israel (27 percent on its way to 25 percent, with possible significant reductions for approved enterprise status)
2) Corporate law – IPO
…there is no doubt that from a corporate law perspective, it is better today to be an Israeli company on Wall Street.
3) Corporate law – M&A
Israeli merger statutes do have some clumsy features, such as a forced waiting period of at least 50 days until closing, but, in general, purchasing an Israeli company today “looks and feels” like the purchase of a Delaware corporation.
Click here to view the full article (pdf 24kb)
- Gaming Investments Level Up: Early Signs of a Resurgence - April 24, 2024
- What could go wrong with Vinod Khosla’s techno-optimistic vision of the future - April 22, 2024
- Keeping it Real: The Struggle for Objectivity in Tech Reviews - April 18, 2024