Hire in Israel without a local entityNETO is your Employer of Record · we legally employ the Israeli worker on your behalf, so you get the talent without opening a company or running payroll in Israel
You found the person you want to hire in Israel · but opening a local company, registering for payroll and taking on the compliance risk is slow and expensive. NETO removes all of it: as your Employer of Record we become the legal employer of the Israeli worker you engage, and we handle the contract, payroll, tax, compliance and full statutory rights. No local entity, no Israeli payroll to set up.
AI summary · Hire in Israel without a local entityClick to read the page summary
NETO lets foreign companies hire employees in Israel without opening a local entity. As the licensed local Employer of Record, NETO legally employs the Israeli worker on your behalf and provides full payroll, tax, compliance and HR support, so the worker receives every statutory right while you keep day-to-day direction of the work. The approach is fast, legal and low-hassle · no company to register, no payroll to build, and a single monthly invoice with a fee of 5% of the client invoice. NETO operates under manpower contractor license 1565 (Bareket I.T Ltd, company id 515486058).
Hiring in Israel · without the company, payroll and paperwork
Employing someone in Israel normally means registering a local company, opening deduction files with the tax authorities and National Insurance, building a payroll process and carrying the full legal responsibility of an employer. For a foreign business that wants a single hire · or a small team · that overhead rarely makes sense.
An Employer of Record (EOR) solves it. NETO becomes the legal employer of the Israeli worker on your behalf, so the entire local employment structure sits with a licensed company that already has it in place. You gain the person you want to hire · we carry the contract, the payroll and the compliance. This is how foreign companies hire in Israel quickly and lawfully.
Key benefits of hiring through NETO
Everything a local entity would give you · without opening one. NETO turns Israeli employment into a service you switch on.
No local entity
No company registration, no deduction files, no local bank account. NETO is already set up as the legal employer, so you can hire the Israeli worker without establishing any presence in Israel.
Payroll and tax handled
NETO issues a compliant payslip and manages income tax, National Insurance, pension and severance · every statutory payment calculated and reported to the authorities on time.
Full legal compliance
As a licensed manpower contractor () NETO carries the employer duties and the compliance risk of Israeli labor law · not you.
Fast to start
No entity to build means onboarding in days, not months. Once the worker signs, NETO can run the first payroll cycle right away · so you start when the talent is ready.
Full worker rights
The Israeli worker you engage receives full rights under the law · pension, National Insurance and severance · so the engagement is secure and dispute-free for both sides.
One transparent fee
A single monthly invoice covering the worker's cost plus a fee of 5% of the client invoice. No entity setup, no payroll software, no local accountant · and full cost visibility on the employer cost page.
From role to first payroll · in five steps
A simple, repeatable path. You handle the work and the relationship with the Israeli worker · NETO handles everything that makes the employment legal.
- Tell NETO about the role. Share which position you want to fill in Israel and the terms you have agreed with the worker. No local company is required on your side.
- NETO becomes the legal employer. NETO signs a compliant Israeli employment contract with the worker and takes on the employer of record role · so you never register an entity or set up payroll.
- NETO runs payroll, tax and compliance. The payslip is issued and income tax, National Insurance, pension, severance and every statutory contribution are handled, on time and accurately.
- You direct the work day to day. You manage tasks and priorities exactly as you would a direct hire, while NETO carries the legal and administrative employer duties.
- You receive one monthly invoice. A single invoice covers the worker's cost plus a fee of 5% of the client invoice · your bookkeeping stays simple and predictable.
Opening your own entity vs hiring through NETO
The same goal · a legally employed Israeli worker · reached two very different ways.
| What it takes | Setting up your own entity | With NETO EOR |
|---|---|---|
| Company registration | Register a local company and files | None · NETO is the employer |
| Payroll setup | Build payroll and open deduction files | Ready · payslip from day one |
| Compliance risk | Sits with you as the employer | Carried by a licensed contractor |
| Time to first hire | Weeks to months | Days |
| Ongoing admin | Local accountant and reporting | One monthly invoice |
| Cost model | Setup + fixed overhead | 5% of the client invoice |
Want to understand exactly what an Israeli worker costs · gross, contributions and on-costs? See the full employer cost in Israel guide.
A licensed, secure employer · not just a middleman
Licensed and supervised
Brokering workers in Israel without a manpower contractor license is a criminal offence. NETO operates lawfully through Bareket I.T Ltd (company id 515486058) under manpower contractor license 1565, supervised by the Ministry of Labor, with guarantees deposited against workers' wages.
- License 1565 · verifiable in the state database
- Bank guarantees securing the worker's pay
- Operating since 2016 as an employment platform
Automated and transparent
NETO is a digital employment platform · not a slow, high-overhead agency. Contracts, payslips, insurances, reporting and payments run through one automated system, so the process is fast, available and fully visible. The employment relationship is set up correctly from the start.
- Fee of 5% of the client invoice · far below a classic agency
- One monthly invoice · no hidden setup costs
- Full statutory rights for the worker you engage
You can verify NETO's license directly in the Ministry of Labor's manpower contractor database · a public register of every licensed manpower company in Israel.
Prefer to start with a trial period?
You do not have to commit to a long engagement to begin. Start with a non-binding probation period through NETO: NETO employs the worker on your behalf and takes care of the payslip, rights and reporting, and you assess the fit in real work.
If it works, you keep employing the worker through NETO as your Employer of Record. If it does not, you end the engagement lawfully · with a proper hearing and the worker's full rights preserved. Questions? Everything is gathered in the employer questions and answers.
Hiring without a local entity · questions and answers
Can a foreign company hire in Israel without a local entity?
What is an Employer of Record in Israel?
How much does it cost to hire through NETO?
Is hiring through an Employer of Record legal?
Does the Israeli worker receive full rights?
How fast can I start employing someone?
Can I start with a trial period?
Do I still manage the worker myself?
Hire in Israel without a local entity · start today
Sign up for free and NETO becomes the legal employer of the Israeli worker on your behalf · contract, payroll, tax, compliance and full rights, for a fee of 5% of the client invoice with no company to open. Operating since 2016 under manpower contractor license 1565, with guarantees deposited at the Ministry of Labor.
In summary
You can hire in Israel without ever opening a local entity. NETO acts as your Employer of Record: we legally employ the Israeli worker on your behalf and take care of the contract, payroll, tax, compliance and full statutory rights, while you direct the work. It is fast, lawful and low-hassle · one monthly invoice, a fee of 5% of the client invoice, and no company to build. NETO has operated since 2016 under manpower contractor license 1565 (Bareket I.T Ltd, company id 515486058).
- No local entity · NETO is the legal employer of the worker you engage.
- Payroll and tax handled · payslip, income tax, National Insurance, pension, severance.
- Fully compliant · license 1565, supervised by the Ministry of Labor.
- Fast to start · onboarding in days, not the months an entity takes.
- Full worker rights · every statutory contribution, on time and in full.
- One transparent fee · 5% of the client invoice, on a single monthly invoice.
Related guides for employers
Employer of Record in Israel
Everything about employing a worker through a licensed local employer of record.
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EOR for foreign companies
How overseas businesses hire and pay Israeli talent without a local presence.
Read moreEmployer cost in Israel
Gross, contributions and on-costs · what it really costs to employ a worker.
Read moreRecruit employees in Israel
Posting, screening and employment · finding the right worker, all in one place.
Read moreEmploying for a trial period
Assess the worker in real work · with no commitment and no risk.
Read moreManpower contractor license 1565
The license, the guarantees and the duties of a manpower company · what the law says.
Read moreEmployer questions and answers
Everything employers ask about hiring, employment and payments · in one place.
Read more
