Starting a business in Palestine: foreigner's guide (2026)

The Companies Law 42/2021 removed foreign-equity limits and local-partner requirements; 100% foreign ownership is now permitted, with no local sponsor required. (This replaced the older Jordanian Companies Law legacy in the West Bank, which had effectively capped foreign holdings around 49%.)

There is no minimum paid-in capital requirement at registration for a limited liability company or a general ordinary company; the prior minimum-capital barrier was eliminated.

Reserve/approve a company name with the Companies Controller; prepare bylaws/Articles of Association signed and stamped via the lawyers' bar association; file and pay fees at the Companies Control Department (MoNE); register for income tax and VAT (single TIN); register with the Chamber of Commerce; and obtain a municipal business license, plus any sector-specific permits.

Company registration is generally efficient and typically completes in around two weeks when all documents are in order; a one-stop-shop approach and an eRegistrations/business portal (palbusiness.gov.ps) support the process.

Foreign companies may register a branch or representative office (Companies Law Arts. 243-245), filing the parent's memorandum, bylaws, registration certificate and audited accounts with certified Arabic translations to the Companies Registry.

Despite the liberalized legal framework, on-the-ground ease is limited: PA administration effectively covers West Bank Areas A/B, Gaza operates under separate and conflict-disrupted conditions, and Israeli movement, access and import restrictions materially raise the cost and complexity of actually operating a business.