This article examines the typical costs associated with creating and maintaining a standard limited liability company (LLC) in Palestine (PS), providing up-to-date figures for 2025. The overview below draws exclusively from official Palestinian sources, detailing both one-time founding expenses and ongoing annual maintenance fees in ILS (Israeli New Shekel) and USD equivalents based on an approximate exchange rate of 1 ILS = $0.27 USD.
Company Formation Costs in Palestine (2025)
The process of establishing a standard LLC (شركة ذات مسؤولية محدودة) involves several mandatory fees and is subject to a statutory minimum capital requirement. Below is a breakdown of these one-off setup costs:
| Item | Amount (ILS) | Amount (USD) |
|---|---|---|
| Minimum capital requirement | ₪1,000 | $270 |
| Company registration fee (Ministry of National Economy) | ₪500 | $135 |
| Lawyer/notary fees (average) | ₪300 | $81 |
| Total average creation cost | ₪1,800 | $486 |
These amounts represent standard requirements for most business founders and may vary if optional legal services or additional official documentation are requested during registration. The minimum capital is a prerequisite for formal registration and must be deposited, while the other costs generally reflect routine government and professional fees.
Annual Maintenance Costs for an LLC in Palestine
Running an LLC in Palestine involves certain recurring obligations. Based on 2025 figures, the annual costs can range quite widely depending on the level of professional services you use during each financial year. Here are the core ongoing expenses:
| Item | Annual Cost (ILS) | Annual Cost (USD) |
|---|---|---|
| Annual renewal/registration fee | ₪200 | $54 |
| Mandatory accounting services (average) | ₪300 | $81 |
| Optional legal/accounting review (recommended) | ₪1,000 | $270 |
| Total annual maintenance (min–max) | ₪500–₪1,500 | $135–$405 |
The lower end of this range reflects minimal compliance—covering basic registration and accounting costs. The higher figure includes professional legal or accounting reviews, which though optional, are widely recommended for robust regulatory compliance and best practices.
Key Sources for Regulatory Costs
These organizations offer guidance, downloadable forms, and the latest updates on official fee structures and company legislation.
Pro Tips for Efficient Company Setup and Maintenance
- Ensure that your minimum capital is available and documented before submitting your company registration—this will streamline approvals from the Ministry of National Economy.
- Negotiate fixed-fee structures with lawyers and accountants early to avoid unexpected costs throughout the year.
- Budget for at least one annual legal or accounting review, as many procedural changes are not always widely publicized.
- Check for any government fee updates on the official ministry website each January, as regulatory adjustments often come into effect at the start of the fiscal year.
Summary of Core Considerations
The cost of establishing a standard LLC in Palestine is straightforward by regional standards, with a transparent breakdown of one-time and annual expenses. In 2025, founders should be prepared for an average initial outlay of ₪1,800 ($486), and annual maintenance costs between ₪500–₪1,500 ($135–$405), depending mainly on the degree of professional advisory used. Official government sources provide regular updates, which should be monitored for any changes in statutory obligations. Accurate budgeting for these costs is crucial to maintaining regulatory good standing and operational continuity in the Palestinian market.