Those who have caught the entrepreneurial bug sometimes tend to rush into decisions related to opening a new business without making the initial fundamental inquiries necessary, which, had they been made, could have, in time, saved them a lot of anguish, not to mention the financial hardship that may be caused due to the lack of prospect and preliminary planning.
Here I’ll make my brief attempt to put in writing several important points of principle that every entrepreneur should look into in advance, from a legal standpoint, before opening a new business:
- Check whether your business requires a business license.
- If the business does require a license, make sure before you lease it that it meets the requirements set forth by the conditions for granting a business license.
- Find out whether the designated property is in consonance with permitted land uses, based on the CDP (city development plan) and on the permit.
- If a permit for nonconforming use is needed, check whether such a permit exists, how long it’s valid for, and who is liable to pay any issuance costs.
- Check whether the designated property is built according to the permit and for the purpose for which you intended to use it.
- Find out your business’s property tax classification, tax rates, and the size of the area subject to property tax.
- Look out for possible signage fees before putting up any signs and/or ads.
- In the case of a business seeking to install illuminated signage, check the authority requirements with regard to size, type of material and so on.
- If your property is accessible only by car, look into different parking solutions in the area.
- If the business is an amusement or recreational establishment (restaurant, bar, and the like), be aware of the permitted business hours.
Good luck!
The above was authored by Attorney Yehuda Talmon, former president of Lahav, and does not constitute legal advice.
It is recommended to consult an attorney with experience and expertise in the field of local government law.
To find a lawyer, refer to the Israel Bar Association’s website.