Corporations in Israel Must Have an Official Digital Address

Promulgated in June 2022, the Digital Communications with Public Bodies Law introduced several new amendments, as well as updated the Companies Law. The main purpose of the law is to enable the receipt of mail from defined governmental and public bodies in Israel via digital means.

According to the law’s provisions, every company in Israel must have a digital address and must inform the Registrar of Companies of that address (via online means only), in order to enable digital mailing. Upon registration of the digital address, and assuming the sender’s compliance with particular transmission conditions, a “presumption of delivery” will apply to the digital mailing that is tantamount to sending a notice to the company by registered mail.

Q&A

Which companies must register their email address?

All companies registered in Israel must report an email address for the purposes prescribed under law, regardless of their type of incorporation. Furthermore, foreign companies operating in Israel through a branch must also report their digital address to the Registrar.

What is considered a digital address?

A digital address consists of two parts – an email address that is open to the general public in the Registrar of Companies’ registries and an additional email address or mobile phone number. The general public will not be able to access the additional address. This address will only be accessible by governmental and public entities for the purpose of communications between those entities and the company.

When is the deadline for reporting a digital address?

Companies incorporated on or after January 27, 2023, must have a digital address from the date of their incorporation. Private companies incorporated prior to this date must report their digital address to the Registrar of Companies by no later than the date of their annual report for 2023, via online means. Public companies had to register their digital address by no later than July 27, 2023.

Companies that did not report their digital address to the Registrar as part of their first annual report after the law came into effect (i.e., the 2023 annual report) recently received a warning letter from the Registrar of Companies obligating them to report their digital address in their 2024 annual reports. Failure to do so may lead to fines and other sanctions.

We recommend that companies that have not reported the details of their digital address in their annual reports for 2024 do so without delay, in a separate filing and via online means.

Can companies refuse to accept emails during the interim period?

Companies incorporated prior to the law’s promulgation date (June 27, 2022) may, at any time after reporting their digital address, notify the Registrar of Companies that they are refusing to accept emails to the digital address they provided until two years after the law came into effect, i.e., until January 27, 2025. If a company issues a notice of refusal, public and governmental entities may only send warning notices via email to the company until the end of the interim period (such as urgent notices about matters that may endanger the safety or well-being of a person or cause severe property damage). Once the interim period comes to an end, public and governmental entities will be able to send the company any digital mailing necessary in the manner prescribed by law.

 How do companies update their digital address?

Companies may update their digital address via the Corporation Authority’s website through the “Corporations Online” tab. The update should be done by whomever is listed in the Registrar of Companies’ register as the CEO, director, or reporting officer of the company for the purposes of online reporting (for example, lawyers holding a designated smart card).

A company may report its digital address in a number of ways – as part of its initial registration application, in an application to update a digital address, and when filing an annual report (in the designated field). Each such update undergoes an approval process using a two-step authentication mechanism designed to prevent fraud and unauthorized use, and to ensure that the address provided is correct and active. 

After the initial registration of their digital address, companies must update the Registrar of Companies of any changes made to the digital address within 14 days of the date of the change.

Is it possible to use an external service provider to set up a digital address?

If a company wishes online mailings to be sent to an address other than the company’s email address (for example, to an email address provided by the company’s lawyer), it is possible to do so. Please note that any mailing sent to a third party’s reported digital address will be deemed tantamount to having been sent to the company itself (for legal purposes).

In light of the timetables specified under law and the shift in the Registrar of Companies’ approach, as reflected in the warning letters recently sent, our recommendation to companies that have yet to report their digital address is to do so at the earliest opportunity, in order to avoid potential fines and sanctions.

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Barnea Jaffa Lande’s Corporate Department offers a variety of services, including registering, reporting, and updating companies’ digital addresses.

Adv. Uri Hillel is a partner in the department