If you are planning to start a business, it is very likely that you have read about the process of issuing a business license, and you understand that if you want to operate as a legal business, you must operate with a business license.
But then the question arises – why is it even important to get a business license?
Is the reason for this purely formal and legal (i.e., you have to get the license because the law forces you to), or are there other reasons for this?
What is your role as a business owner in maintaining public order, and protecting residents and workers in factories, by complying with the necessary regulations and issuing a business license?
The license that protects everyone – both the citizen and the business owner!
In the businesses you run, you probably have some kind of public responsibility. What does this mean? What it means is that even if you think the whole point of your business is to make a profit, it has an impact on the people who come to it and/or work there, as well as on the surrounding communities, and therefore you are required to obtain a business license.
That's why the process of getting a business license is so important these days. A business license, beyond the formal seal, is also the goal that directs you to act in the public interest. This way, you can ensure that your business is run in a completely safe manner, and does not endanger the population.
And what are you committed to?
After you understand the importance of obtaining a business license, all you have to do is read the Business Licensing Law and its regulations and see exactly what steps you must take to obtain a business license. Today, there are differences between the various businesses, and each type of business has special permits that it must obtain in order to obtain a business license.
It is important to emphasize in conclusion that beyond the aspects detailed below, the legal aspect must also be emphasized. If a business that requires a license operates without a license, the business owner may find himself facing an indictment as well as administrative enforcement tools such as closure orders and various financial sanctions.
Business licensing concepts that are important to know!
Change of ownership
Any change in the identity of the owners registered in the business license, including the addition or removal of an owner, as well as the transfer of control of a corporation within the meaning of the Securities Law, 5728-1968.
License cancellation
The local authority may revoke a business license on its own initiative or at the initiative of the licensee, if the business has violated the terms of the license. The license will be revoked only after the business owner has been given the opportunity to present his/her arguments to the local authority.
objection
Filing an appeal against a demand or refusal to grant a license, temporary permit or expedited permit submitted by the applicant who considers himself aggrieved by the authority's demand or refusal.
Expedited permit
A license granted to the business owner, even before receiving approval from the licensees. An expedited permit can only be granted to businesses that are eligible for it according to the Business Licensing Order 5773 2013, Column D, for which uniform specifications have been published.
accessibility
Adapting a business to people with disabilities. Obliged by law to provide equal rights to people with disabilities.
Uniform Authority Policy and Specification
The policy of the Migdal Tefen Local Industrial Council is to complete the provisions of the bylaws and publish the requirements of the various departments for types of businesses requiring licensing.
Business owner
Including the business license holder, the license applicant, the business owner, or the person under whose supervision, supervision, or management the business operates, whether an individual or a corporation.
National authorized body
Each of the following, as applicable:
(1) The head of the licensing authority in whose jurisdiction the business is located or another senior employee from among its employees whom he has authorized for this matter;
(2) The Director General of the Ministry grants the approval or another senior employee from among the employees of his Ministry who he has authorized for this matter;
(3) Fire and Rescue Commissioner or another senior fire and rescue officer whom he has authorized for this matter;
(4) The Inspector General of the Israel Police or another senior police officer authorized by him for this matter.
Licensing Authority Requirements
Documents and conditions required by the Licensing Authority and any other decision or directive on its behalf according to the law regarding a specific type of business included in the uniform specification, which were published on the Licensing Authority's website.
Instructions alongside the Uniform Specification
Documents and conditions as stated in Section 7C2(c) of the Law, which were determined by legislation, required of a business owner under the Law, including under Sections 6B, 6C and 8 to 11B of the Law, however, their failure to publish them does not exempt them from the requirement to submit or complete them.
Businesses requiring licensing
Types of businesses specified in the Business Licensing Order (Businesses Requiring Licensing), 2013, for which obtaining a business license is a condition for their establishment. The types of businesses are divided into ten groups, and the order also specifies the licensing objectives for each of them.
Uniform specification
A specification, according to Section 7C1 of the Business Licensing Law, which unifies the conditions for a license, required on behalf of the licensees according to Section 7 of the Law and the documents required according to Section 6D of the Law,
A business of the type stated at the beginning of the specification and instructions alongside the uniform specification, which appear in the specification.
Instructions alongside the Uniform Specification
Documents and conditions as stated in Section 7C2(c) of the Law, which were determined by legislation, required of a business owner under the Law, including under Sections 6B, 6C and 8 to 11B of the Law, however, their failure to publish them does not exempt them from the requirement to submit or complete them.
Early information
Information provided by business licensing units in local authorities to those seeking to establish businesses that require licensing. The information includes details about:
– The type of business as defined in the business licensing order.
– Licensing policy and guidelines specific to the type of business.
– Licensing issues are expected.
– Relevant laws and regulations.
– Need to issue a building permit or change the zoning.
– Details of the necessary certifiers.
– Instructions for submitting an application for business licensing.
Preliminary opinion
An opinion given by the licensing authority and/or the permit issuer to a business that has not yet opened regarding the conditions it will be required to meet in order to receive a business permit/license.
Business license
The business license is intended to ensure that all appropriate measures and arrangements are taken to operate a business properly, according to the goals of the Business Licensing Law and for the benefit of the public and the environment.
Not every business requires a license, but only businesses that are defined in the Business Licensing Order (Businesses Requiring Licensing), 2013 as businesses requiring licensing.
Temporary permit
A permit to operate a business, granted by the licensing authority for a business license in a business that requires licensing, for a cumulative period of one year at most. During this period of time, the applicant may operate the business, but must complete the conditions set by the license issuers in order to receive the business license at the end of the period.
License Terms
The licensing authority and the permit issuer may condition the business license, temporary permit or approval, on three types of conditions – a prerequisite, a condition in the license and an additional condition. These conditions are intended to ensure that the licensing objectives are met, and are part of the licensing process. As a rule, the conditions of the permit issuers should appear in the uniform specification (to the extent that a uniform specification has been published for that type of business) and the licensing authority’s conditions regarding types of businesses should appear in the licensing authority’s requirements on its website. Exceptions to this rule appear in Section 7 of the Business Licensing Law.