EOR — Employer of Record Services for Foreign Companies in Israel
Want to hire an employee or freelancer in Israel — without opening a company and without bureaucracy? NETO EOR enables international companies to employ Israeli staff legally, quickly, and simply.
📋 Quick Summary — EOR for Foreign Companies
- Hire Israeli employees or freelancers without opening a local entity
- NETO acts as the legal employer — full compliance with Israeli labor law
- Payroll, social benefits, pension contributions — all handled by NETO
- Payment in USD, EUR, GBP, or ILS — invoices in English for international companies
- Onboarding in minutes to a few hours — no registration, no Israeli bank account required
📌 Table of Contents
What is EOR — Employer of Record?
EOR (Employer of Record) is an employment model where an external company (NETO) formally employs the worker on behalf of the foreign company. The foreign company directs the employee’s day-to-day work, while NETO handles all legal, payroll, and compliance responsibilities.
The model is especially popular among international tech companies, startups, and multinationals looking to hire Israeli talent without opening a local entity.
How NETO EOR Works — 4 Simple Steps
Agreement & Onboarding
Sign the service agreement with NETO. The process is fully digital and takes minutes to a few hours.
Employee Employment Contract
NETO issues a formal employment contract to the Israeli employee, compliant with Israeli labor law.
Monthly Payroll
NETO processes monthly salary, social benefits, and all mandatory deductions. You receive a single invoice in your preferred currency.
Ongoing Management
NETO manages all ongoing HR and compliance — so you can focus entirely on your business.
Why Choose NETO EOR?
No Local Entity Required
No need to open a company in Israel, register a tax file, or open an Israeli bank account
Full Legal Compliance
Employment contracts, social rights, pension contributions — full compliance with Israeli labor law
Flexible Payment
Pay in USD, EUR, GBP, or ILS — invoices in English for international companies
International Operations
Ideal for global companies hiring in multiple countries simultaneously
Fast Onboarding
Minutes to a few hours — after signing the agreement, NETO handles all employment paperwork
Reduced Risk
NETO bears the legal employer risk — protecting you from labor law exposure in Israel
🔍 EOR vs. Opening a Company in Israel — Comparison
| Feature | ✅ NETO EOR | 🏢 Opening a Company in Israel |
|---|---|---|
| Company Registration | ✅ Not required | ❌ Required (weeks) |
| Israeli Bank Account | ✅ Not needed | ❌ Required |
| Tax File Registration | ✅ Not required | ❌ Required (months) |
| Onboarding Time | ⚡ Minutes to a few hours | 🐢 Weeks to months |
| Legal Compliance | ✅ Full compliance from day one | ⚠️ Complex setup required |
| Ongoing Costs | ✅ Single invoice in your currency | ❌ Ongoing accountant & legal fees |
| Flexibility | ✅ Scale up or down easily | ❌ Complex exit process |
Compliance, Trust & Regulation — Why NETO Is the Safe Choice
Manpower Contractor License #1565
Licensed under the Employment of Workers by Manpower Contractors Law, 1996. View license | Verify at Ministry of Labor
Full Israeli Labor Law Compliance
Employment contracts, social rights, salary agreements, severance pay law — all Israeli labor law requirements met
Transparent Pricing
Clear, upfront pricing with no hidden fees — you always know exactly what you’re paying for
Data Security & Privacy
Employee data is managed securely and in accordance with Israeli and international privacy regulations
Health Insurance & Benefits
Full coordination of health insurance, pension contributions, and all mandatory Israeli employee benefits
Reporting & Analytics
Monthly payroll reports, employee cost summaries, and full documentation of employee costs.
Official NETO License — Manpower Contractor #1565
Official NETO License — Manpower Contractor #1565
NETO is a licensed manpower contractor, regulated by the Israeli Ministry of Labor. License valid until 28.02.2029.
Who Is NETO EOR For?
International Companies Hiring Employees in Israel
Foreign companies — startups, multinationals, tech companies, consultants — seeking to hire Israeli employees without establishing a local entity. NETO enables legal employment from day one.
Israeli Freelancers Working for Foreign Companies
Israeli freelancers contracted by foreign companies can be employed through NETO, ensuring full legal compliance and proper social benefits — without the complexity of direct international employment.
Companies Testing the Israeli Market
Companies exploring the Israeli market before committing to a full local entity can use NETO EOR as a flexible, low-risk solution to hire and test local talent first.
Frequently Asked Questions — EOR for Foreign Companies
You can typically start within minutes to a few hours. After signing the agreement, NETO handles all employment paperwork with the employee and the authorities. The entire process is digital.
Yes. NETO holds Manpower Contractor License #1565, issued by the Israeli Ministry of Labor. This license authorizes NETO to legally employ workers on behalf of client companies. Verify on the Ministry of Labor website.
You can pay in USD, EUR, GBP, or ILS. NETO issues invoices in English to suit international companies’ accounting requirements.
Costs depend on the employee’s salary and the scope of service. Contact us for a personalized quote tailored to your needs.
With EOR, you choose the employee and direct their work — NETO only handles the legal employment. With a staffing agency, the agency typically also recruits and assigns workers. EOR gives you full control over who works for you, with none of the legal headaches.
Yes. NETO also handles freelancers, including those without an active Israeli business registration (osek murshe). We manage invoicing and compliance for international companies working with Israeli freelancers.
Ready to Get Started?
Join 8,000+ employers already hiring through NETO — without opening a company, without bureaucracy, without headaches.
📋 Summary — Is NETO EOR the Right Solution for Foreign Companies?
International companies that want to hire Israeli employees and freelancers face complex regulatory and legal requirements. NETO EOR handles all of these: no need to set up a local entity, no local accountant, no bureaucracy — just one invoice. You get a result: an Israeli employee working legally, on time, and in an organized manner.
- ✅ Fast — start work within days, not months
- ✅ Legal — full compliance with Israeli labor law
- ✅ Simple — one international invoice, no local payroll management
- ✅ Reliable — License 1565, 10+ years experience, 110,000+ employees
🔗 Useful Links — Additional Information
About the Author
Yizhar Cohen
Yizhar Cohen is the CEO of NETO with over 10 years of business management experience. He holds a first degree in business administration and a second degree in logistics, combining academic knowledge with extensive practical experience managing thousands of employees and Israeli payroll processes.