Palestinian National Authority

1. Legal framework

1.1 Does your jurisdiction have a civil law system, a common law system or a hybrid system?

The Palestinian legal framework is mainly civil and has been influenced by certain common law traditions. Notably, this has been shaped by the various authorities that have ruled over Palestine throughout its history, including:

Ottoman rule (Ottoman law, which included an Islamic law influence and the French law of commerce);
the British mandate (common law influence);
Jordanian rule (civil law impact);
Israeli military orders; and
the Palestinian Authority.

1.2 Which legislative and regulatory provisions primarily govern the establishment and operation of enterprises in your jurisdiction?

The main legislation that governs the establishment and operation of enterprises in Palestine is the Companies Law (42/2021) and its relevant regulations.

1.3 Which bodies are responsible for drafting and enforcing these provisions? What powers do they have?

Under the Constitution, the responsible body for drafting should be the legislative council. However, given the ongoing absence of a legislative council due to the political conditions in Palestine, the executive branch instead enacts these laws and provisions.

As for enforcement, each law usually designates a regulatory body which is competent for its enforcement. The companies registrar under the Companies Law has a wide range of powers to monitor and ensure that the provisions of the law are well respected and enforced.

2. Types of business structures

2.1 What are the main types of business structures in your jurisdiction and what are their key features?

Company Type	Key Features
General partnership company	The liability of the partners is unlimited and each partner is jointly and severally liable with the rest of the partners as well as individually. No legal entities can be part of this type of company, as it is reserved to individuals.
Limited partnership company	The general partners have unlimited liability, meaning that each is jointly and individually responsible for the partnership's obligations. In contrast, limited partners enjoy limited liability, restricting their responsibility to the portion they have invested in the company's capital.
Limited liability company	Members have limited liability, whereby their liability is limited to the portion that they have invested in the company's capital. A member may own shares without providing payment. The Companies Law (42/2021) recognises the concept of a shareholders' agreement, which is considered to be part of the company's bylaws. The law also allows a company to be owned by one shareholder.
Private shareholding company	Shareholders have limited liability, whereby their liability is limited to their invested shares in the company's capital. The Companies Law allows a company to be owned by one shareholder.
Public shareholding company	This offers shares to the general public that are traded through the Stock Exchange. Additionally, shareholders have limited liability, whereby their liability is limited to their invested shares in the company's capital. Moreover, there is a minimum requirement of two shareholders.

2.2 What capital requirements apply to these different types of business structures?

Company Type	Capital Requirements
General partnership company	There are no specific capital requirements.
Limited partnership company	There are no specific capital requirements.
Limited liability company	There are no specific capital requirements.
Private shareholding company	There are no specific capital requirements, except that the capital must be: sufficient to meet the company's objectives, according to its type of activity; and consistent with the provisions of the relevant legislation. Additionally, the minimum capital must be specified in the company's bylaws.
Public shareholding company	The minimum capital is: $25,000 or 20% of the authorised capital, whichever is greater; or the minimum as required by special legislation in certain cases.

2.3 What is the process for establishing these different types of business structures? What procedural and substantive requirements apply in this regard? What is the typical timeline for their establishment?

Companies in Palestine are duly registered in adherence with the Companies Law (42/2021). The process of registration involves the following main steps:

Reserve a unique company name and obtain approval from the companies registrar at the Ministry of National Economy.
Prepare the company's bylaws based on the type of the company being registered.
Submit the registration application to the Ministry of National Economy along with the bylaws and pay the required registration fees.
After incorporation of the company, the company will be duly registered for income tax and value added tax with the relevant tax authorities.

Typically, the process of registering a company in Palestine is efficient and takes around two weeks, provided that all relevant documents are submitted.

2.4 What requirements and restrictions apply to foreign players that wish to establish a business directly in your jurisdiction?

Foreign companies are prohibited from performing any activity in Palestine unless they are duly registered with the companies registrar as per the applicable laws and regulations.

Foreign companies:

can be registered in Palestine as any of the business structures mentioned in question 2.1; and
will be registered as a branch of the foreign company.

The requirements for registration are very similar to those for a local company, with certain additional requirements, such as the extra steps of translating, notarising and legalising the related documents at the competent authorities.

2.5 What other opportunities, using people/entities not connected with the main person, are there to do business in your jurisdiction (eg, agency, resale); and what requirements and restrictions apply in this regard?

The Law on the Regulation of Commercial Agents (2/2000) addresses the requirements for agency. The law stipulates several formalities and requirements, and mandates the existence of a fully fledged written distribution/agency agreement whose main features and elements are outlined by the law.

3. Directors and management

3.1 How is management typically organised in the different types of business structures in your jurisdiction?

Pursuant to the Companies Law (42/2021), different types of business structures are managed as follows:

General partnership companies are managed by the partners, unless the company bylaws provide otherwise.
Limited partnership companies are managed by the general partners; limited partners cannot be part of the company's management unless the company bylaws state otherwise.
Limited liability companies are managed by one or more authorised signatories:
- assigned from the members or non-members of the company; and
- who are registered in the Companies Register.
Private shareholding companies are managed by:
- a board of directors (not less than three members); or
- one or more directors elected by the company's general assembly.
Public shareholding companies are managed by a board of directors of between five and 13 members as per the company bylaws, elected by the general assembly.

3.2 Is the establishment of specialist committees recommended or mandated for certain types of enterprises? If so, which areas should they cover?

For public shareholding companies, it is mandatory for the board of directors to establish an audit committee in accordance with the Companies Law.

The board of directors must also have the option of establishing other committees tailored to the company's needs and bylaws, and the applicable legislation.

3.3. Is the appointment of corporate directors permitted in your jurisdiction?

Under the Companies Law, a company is permitted to have corporate directors. Their powers and rights are exercised pursuant to the law and the company bylaws. In the case of the executives, the board of directors may design the mandate of each executive.

3.4 What requirements and restrictions apply to the appointment of directors, in terms of factors such as number, residence, independence, diversity etc?

With respect to private shareholding companies, the board of directors must be comprised of at least three members, who may be non-shareholders.

As for public shareholding companies, the board of directors must comprise between five and 13 members, who may be non-shareholders. Other requirements and restrictions apply to the appointment of directors of public shareholding companies as outlined in the Companies Law, including:

the representation of both genders, so that at least one-third of the members are women, if possible;
the presence of both executive and non-executive members; and
the independence of at least one non-executive director as defined in the law.

3.5 How are directors selected, appointed and removed? Do any restrictions or recommendations apply to their tenure?

The members of the board of directors are selected and appointed by the company's general assembly in accordance with the Companies Law.

In public shareholding companies, the board of directors must carry out the tasks and responsibilities entrusted to it to manage the company's business for a renewable period of four years from the date of its election, unless the company bylaws provide for a shorter period, provided that this is not less than one year.

As for the removal of directors, detailed provisions are set out under the Companies Law with respect to resignation, dismissal and loss of membership in certain cases. In general, the dismissal or removal of a board member requires a resolution by an extraordinary general assembly, which entails a special majority.

3.6 What are the directors' primary roles and responsibilities, and how are these exercised?

As per Article 20 of the Companies Law, the directors' primary roles and responsibilities are as follows:

to exercise their powers properly in accordance with the provisions of the law and the founding documents of the company;
to take decisions on behalf of the company freely and work to develop its interests in good faith for the benefit of all partners, members and shareholders;
to act with the care, prudence, skill, reasonable effort and knowledge in the manner specified under the law;
to avoid cases that may lead to a conflict of interest as per the law; and
to comply with disclosure requirements as stipulated under the law.

3.7 Are the roles of individual directors restricted? Is this common in practice?

The role of the board of directors is usually set out before the appointment as per the company bylaws. Any change to the roles of board of directors must be done through an extraordinary general assembly resolution and decided upon by the shareholders.

3.8 What are the legal duties of individual directors? To whom are these duties owed?

The legal duties of directors are the same as their primary roles and responsibilities as stated in question 3.6. Such duties are owed to the enterprise and the shareholders.

3.9 To what civil and criminal liabilities are individual directors primarily potentially subject?

The Companies Law introduced the concept of piercing the corporate veil and holds directors accountable in both civil and criminal liability in case of grave violation or misconduct. The law entitles shareholders to take action in this regard. Criminal liability is subject to stringent requirements that are governed under the penal laws.

4. Shareholders/members

4.1 What requirements and restrictions apply to shareholders/members in your jurisdiction, in terms of factors such as age, bankruptcy status etc.?

Shareholders and members must be able to pay for their shares in the enterprise, regardless of age, status and so on.
No one may be accepted as a partner in a general partnership company unless he or she:
- has legal capacity; and
- is at least aged 18.
General partnership companies may not consist of more than 20 partners, unless the increase in number occurs as a result of inheritance.

4.2 What rights do shareholders/members enjoy with regard to the company in which they have invested?

In general, in both public and private shareholding companies, the shareholders have the following key rights:

the right to receive dividends;
the priority right to subscribe to new shares that the company may issue;
the right to dispose of their shares; and
the right to attend the general assembly and participate in its deliberations in accordance with the law and the company bylaws.

4.3 How do shareholders/members exercise these rights? Do they have a right to call shareholders' meetings and, if so, in what circumstances?

The manager or the board of directors must invite all shareholders to any regular or extraordinary general assembly meeting.
Five per cent of the shareholders are entitled to call for a general assembly meeting through a petition prescribed under the Company Law. This petition usually involves the companies registrar.

4.4 What influence can shareholders/members exert on the appointment and operations of the directors?

The board of directors is elected by the general assembly. The board of directors exercises its authority as per the company bylaws and within the limits and restrictions stipulated thereunder. However, the Companies Law (42/2021) requires the board of directors to obtain the general assembly's approval for certain transactions that have material effect, such as mergers and acquisitions, lending, borrowing and guarantees that exceed special thresholds.

This is in addition to any amendments to the company bylaws which require the approval of the general assembly by special majority vote.

4.5 What are the legal duties/responsibilities and potential liabilities, if any, of shareholders/members?

The Companies Law provides for the liability of a member or shareholder that abuses the limited liability doctrine. The law further lists certain scenarios – such as fraud, misrepresentation and self-dealing – as grounds to pierce the corporate veil, constituting liability against a shareholder or member that is in default.

4.6 To what civil and criminal liabilities might individual shareholders/members be subject?

If the stringent criteria of a criminal action are met, such grounds may give rise to criminal liability.

4.7 Are there rules governing the issuance of further securities in a company? Do rights of pre-emption exist and, if so, how do they operate? Can they be circumvented? If so, how and to what extent?

Generally, a private shareholding company may increase its capital in one of the following ways:

increasing its capital in exchange for new contributions;
adding the optional reserve, retained earnings or both to the company's capital; or
capitalising the debts owed by the company or any part thereof, provided that the creditors which own these debts agree to this in writing.

When the company's capital is increased, the shareholders usually enjoy a right of first refusal through the mechanism described in the company bylaws. The law emphasises the pre-emptive rights of the shareholders, unless these are waived under the bylaws via an extraordinary general assembly meeting.

With regard to the increase of capital of a public shareholding company, this is governed by:

the Companies Law; and
the Laws for Securities.

Additionally, if a company is a regulated body (eg, a bank or insurance company), the increase in capital is subject to further requirements that are outlined under the relevant regulatory regime.

4.8 Are there any rules on the public disclosure of levels of shareholding and/or stake building?

In practice, with regard to private shareholding companies, there is no available access to the identities of the shareholders. For public shareholding companies, there should be public disclosures about all related parties, insiders and any transactions relating to their ownership in the company.

Moreover, key shareholders that own more than a specific percentage must disclose their ownership and any related change thereto.

5. Operations

5.1 What are the main routes for obtaining working capital in your jurisdiction? What are the advantages and disadvantages of each?

While usually the working capital is obtained through the subscription of the shareholders, a company can also obtain working capital through different kinds of available financing, including shareholders' loans, as well as borrowing from banks and other financial institutions.

5.2 What are the main routes for the return of proceeds in your jurisdiction? What are the advantages and disadvantages of each?

A profit-generating company may, after taking the necessary reserves stipulated under the Companies Law, distribute dividends to its shareholders. The percentage of such dividends must be approved by the annual general assembly meeting.

5.3 What requirements and restrictions apply to foreign direct investment in your jurisdiction?

There are no special restrictions on foreign direct investment, except for registration of the foreign direct investment where this is conducted via a foreign company. In the case of public shareholding companies, funding or owning shares through a foreign company or fund can materialise through the stock market.

For specially regulated entities such as banks, foreign investment is limited to a certain percentage beyond which the prior consent of the related regulator is required.

5.4 What exchange control requirements apply in your jurisdiction?

In Palestine, the comprehensive and detailed Securities Law (12/2004) and its relevant regulations govern operations and trading on the stock market. The Palestine Capital Market Authority is the competent regulator which oversees the capital markets, including securities, bonds and all other tradable instruments. Multiple regulations govern each aspect of trading (eg, disclosures, related parties' ownership, brokers, settlement).

5.5 What role do stakeholders such as employees, pensioners, creditors, customers and suppliers play in shaping business operations in your jurisdiction? What other influence can they exert on an enterprise?

From a legal perspective, these stakeholders have no specific role in shaping business operations. They may have some de facto role from a business perspective, but that is beyond the scope of this Q&A.

6. Accounting reporting

6.1 What primary accounting reporting obligations apply in your jurisdiction?

All companies registered in Palestine must:

keep company books and duly organised and accurate accounting records; and
prepare and submit annual financial statements as per the applicable legislation to the companies registrar within four months of the end of the financial year.

Additionally, with respect to shareholding companies, the annual financial statements must be endorsed by the general assembly.

The specific provisions and requirements under Part 6, Chapter 10 of the Companies Law (42/2021), entitled "Accounting & Auditing", are relevant to the company's accounting reporting obligations.

6.2 What role do the directors play in this regard?

In partnerships, the person authorised to manage the partnership is responsible for:
- the company books and record keeping; and
- the preparation of the annual financial statements.
In limited liability companies, the company's authorised signatory is responsible for record keeping and preparation of its annual financial statements.
In shareholding companies, either the director or the board of directors is responsible for preparing the company's financial records and the annual financial statements.

6.3 What role do accountants and auditors play in this regard?

Part 6, Chapter 10 of the Companies Law is entitled "Accounting & Auditing". It provides that:

the auditors are responsible for auditing the company's accounts pursuant to:
- the adopted auditing rules; and
- the profession's requirements and scientific and technical principles, based on the relevant legislation;
the auditors must submit the written audit report to the company's general assembly; and
the audit report and the company's financial statements must adhere to the prevailing international standards and the law relating to the auditors' profession.

6.4 What key concerns and considerations should be borne in mind with regard to accounting reporting in your jurisdiction?

The Companies Law introduced a requirement for the boards of directors of public shareholding companies to establish an audit committee. It also sets out the sanctions and penalties for failure to adhere to proper accounting reporting obligations.

7. Executive performance and compensation

7.1 How is executive compensation regulated in your jurisdiction?

In Palestine, executive compensation is regulated under the Companies Law (42/2021). The board of directors and the executive management of a company receive remuneration for their services in conformity with the remuneration policy adopted by the general assembly in its extraordinary meeting.

7.2 How is executive compensation determined? Do any disclosure requirements apply?

The remuneration can be fixed or specified pursuant to variable elements in a manner that ensures the company's long-term sustainability and stability.

The Companies Law provides that the annual report submitted by the board of directors to the general assembly must adhere to:

the disclosure instructions issued by the Palestinian Capital Market Authority; and
the disclosure rules applicable at the Stock Exchange.

Furthermore, the granted incentives and remunerations must be reflected separately in the company's financial statements.

7.3 How is executive performance monitored and managed?

In essence, the board of director is the competent authority which sets out the policies and procedures for:

the functions of the executives;
their related performance criteria; and
key performance indicators.

Additionally, the board of directors has the right and the obligation to adopt an authorisation matrix with the relevant checks and balances to ensure that proper governance is in place.

7.4 What key concerns and considerations should be borne in mind with regard to executive performance and compensation in your jurisdiction?

A distinction must be made between:

the adoption of the remuneration policy; and
the adoption of remuneration.

The Companies Law clearly stipulates that:

the remuneration policy is adopted by the general assembly's extraordinary meeting; and
the board of directors' remuneration per se is adopted by the general assembly's ordinary meeting.

8. Employment

8.1 What is the applicable employment regime in your jurisdiction and what are its key features?

Employment relationships are mainly governed and regulated by the Labour Law (7/2000). The Labour Law applies to all employers and employees in the private sector in Palestine, except for the following categories which are explicitly mentioned under the law:

government and local government employees;
domestic servants and their equivalents; and
first-degree family members of the employer.

A key feature of the applicable employment regime is that the provisions of the Labour Law represent the minimum rights of employees, which cannot be waived. To this end, whenever there is special regulation of the relationship between the employer and employee, the more favourable to the employee of either these special provisions or the provisions of the law will apply.

Other relevant instruments regulating employment include statutes, resolutions and regulations issued primarily by the Council of Ministers and the Ministry of Labour.

8.2 Are trade unions or other types of employee representation recognised in your jurisdiction?

Trade unions are recognised under the Labour Law, which provides that employees and employers have the right to form and establish trade unions on a professional basis for the purpose of safeguarding their interests and defending their rights. Additionally, the law affords a certain level of protection to employees' rights in this regard.

8.3 How are dismissals, both individual and collective, governed in your jurisdiction? What is the process for effecting dismissals?

Dismissals are mainly governed under Part 3, Chapters 2 and 3 of the Labour Law.

The Labour Law governs the unilateral termination by the employer of an employee's contract without notice. Accordingly, the law explicitly lists the violations that will constitute grounds for the unilateral termination by the employer without notice to the employee.

Moreover, the Labour Law allows, with conditions, for the termination of employees' contracts:

for restructuring purposes; or
due to technical reasons or losses which make it imperative to reduce the number of workers.

This is conditioned on the fulfilment of certain procedural requirements that are covered by the law and judicial practice.

If there is no valid and justifiable reason for dismissal, the employer will be subject to claims of arbitrary/unlawful dismissal.

8.4 How can specialist talent be attracted from overseas where necessary?

Specialist talent can be attracted from overseas and employed by enterprises in Palestine, provided that a work permit is obtained for such foreign workers. In accordance with the Labour Law and relevant regulations, the Ministry of Labour can provide foreign workers with permits to work in Palestine. It is prohibited for an employer to employ (whether directly or through others) any non-Palestinian employee without obtaining such a permit.

8.5 What key concerns and considerations should be borne in mind with regard to employment in your jurisdiction?

As the Palestinian courts customarily tend to interpret ambiguous situations in favour of employees, employers would be well advised to adhere strictly to the provisions of the law.

9. Tax

9.1 What is the applicable tax regime in your jurisdiction and what are its key features?

Individuals and legal entities are subject to the applicable tax regime in Palestine, which mainly involves two key taxes:

Income tax is imposed on income sources in accordance with Decree Law 8/2011 and its amendments. This decree law:
- obliges every person that practises a business or investment activity to register as a taxpayer with the Department of Income Tax on the inception of such activity; and
- contains a set of legal and regulatory provisions with respect to the nature of taxable income, tax exemptions and deductions, tax rates and other topics.
Value added tax (VAT) is typically imposed on the purchase of certain products and services at a rate of 16%. The Economic Protocol based on the Oslo Agreement has certain relevance when it comes to the VAT percentage which the Palestinian Authority can adopt.

9.2 What taxes apply to capital inflows and outflows?

Generally speaking, there are no specific provisions on repatriation and capital inflows and outflows in Palestine.

9.3 What key exemptions and incentives are available to encourage enterprises to do business in your jurisdiction?

Decree Law 8/2011 outlines certain income tax exemptions and deductions, such as the operational costs and expenses associated with the business.

Moreover, the Law on the Encouragement of Investment (1/1998) and its amendments grant incentives and tax holidays under certain terms and conditions. Specifically, Decree Law 7/2014 amending the Law on the Encouragement of Investment enables the Investment Promotion and Industrial Estate Agency to arrange for specific tax packages. The aim is to establish an environment which promotes investment in Palestine.

9.4 What key concerns and considerations should be borne in mind with regard to tax in your jurisdiction?

With regard to tax in Palestine, it is important to continually seek assistance and advice for each project. This is because the tax regime is very detailed and most cases will be judged on their own merits.

10. M&A

10.1 What provisions govern mergers and acquisitions in your jurisdiction and what are their key features?

The Companies Law (42/2021) governs mergers and acquisitions (M&As) in detail and regulates the different scenarios for each form of M&A. The law:

includes several sections that deal with the legal, procedural, financial and regulatory aspects of M&As; and
applies several safeguards to protect creditors, minor shareholders and third parties when it comes to the new entities that emerge from each form of M&A.

In particular, the law:

emphasises the importance of requesting a clear M&A plan; and
gives a prominent role to the general assembly of the parties to any M&A transaction to ensure that reasonable measures are applied.

The aim is to minimise the risks that are usually involved in M&A transactions. Further, strict disclosure requirements are in place under the Securities Law and Regulations, which have a mandatory nature.

If an M&A involves a licensed entity, there are mandatory requirements whereby the relevant regulator must approve the process from inception to completion.

10.2 How are mergers and acquisitions regulated from a competition perspective in your jurisdiction?

There is no fully fledged competition law in Palestine.

10.3 How are mergers and acquisitions regulated from an employment perspective in your jurisdiction?

As per the Companies Law, the rights and obligations of the merged company are transferred to the merging company or the company resulting from the merger. These include all types of contracts, which means that the new merged company is responsible for upholding all previous and present employment contracts.

The Labour Law also confirms that employment contracts will remain valid and in force even if the employer changes due to a transfer of ownership, sale or merger.

10.4 What key concerns and considerations should be borne in mind with regard to M&A activity in your jurisdiction?

The Companies Law is relatively new and many of its provisions have not yet been tested in practice.

11. Financial crime

11.1 What provisions govern money laundering and other forms of financial crime in your jurisdiction?

Several provisions govern money laundering and other forms of financial crime in Palestine. The key instrument in this regard is Decree Law 39/2022 on Anti-Money Laundering and Counter-Terrorism Financing and its amendments. This is in addition to the classic provisions under the Penal Code (16/1960), which are of a conventional nature.

11.2 What key concerns and considerations should be borne in mind with regard to the prevention of financial crime in your jurisdiction?

There is no established judicial precedent on this matter as yet, because Decree Law 39/2022 on Anti-Money Laundering and Counter-Terrorism Financing is relatively recent. The practical implications of this decree thus remain untested.

12. Audits and auditors

12.1 When is an audit required in your jurisdiction? What exemptions from the auditing requirements apply?

The Companies Law (42/2021) mandates public shareholding companies to submit annual audit reports – which must be endorsed by the general assembly – within a maximum period of four months from the end of the company's financial year.

12.2 What rules relate to the appointment, tenure and removal of auditors in your jurisdiction?

External auditors are appointed by the general assembly at its annual meeting and serve for a one-year term, which can be renewed. The removal of auditors, on the other hand, is a matter handled by the general assembly during an extraordinary meeting.

12.3 Are there any rules or recommendations that limit the scope of services as regards the provision of non-audit services by an auditor?

Primarily the auditors' services involve:

reporting to the general assembly in the meeting; and
providing clarification on any shareholder inquiries.

The Companies Law (42/2021) limits the scope of services that auditors can provide, including prohibiting them from engaging in permanent technical, administrative or advisory roles for the companies they audit. Top of Form

12.4 Are there any rules or recommendations which cap the remuneration of an auditor as regards payment for the provision of non-audit services?

Auditors and their activities are subject to:

detailed regulation under the Companies Law; and
the provisions of the applicable professional code, which is enforced by a specific regulator.

The Companies Law (42/2021) broadly outlines that the fees for auditors regarding audit services, which are to be determined by the general assembly or, where authorised to do so by the board of directors, the general assembly. However, the Companies Law does not address the issue of auditors' remuneration for non-audit services.

13. Termination of activities

13.1 What are the main routes for terminating business activities in your jurisdiction? What are the advantages and disadvantages of each?

The laws and regulations on terminating a business in Palestine are not as mature as those in other jurisdictions. The most common method is liquidation.

Liquidation of a business occurs due to one of the following main reasons:

optional liquidation; or
the issuance of a final decision by the competent court to liquidate the company compulsorily or due to bankruptcy.

The new Companies Law (42/2021) is more flexible with regard to liquidation and deregistration of companies than the revoked Companies Law (12/1964), which gave authority to the companies registrar in this regard.

The old Companies Law addressed the issue of liquidation in Chapter 10, Articles 181-212. The old law was rigid and rather vague on the issue of liquidation, and lacked clear and detailed procedural steps for the liquidation process, making it challenging for laypersons. The new Companies Law governs the issue of liquidation under Chapter 9 in a smooth and clear manner:

outlining a detailed chronological process for liquidation; and
introducing new legal terms and concepts in a manner which is easily comprehensible and clear for any reader.

13.2 What key concerns and considerations should be borne in mind with regard to the termination of business activities in your jurisdiction?

Given the recency of the new Companies Law, its provisions on liquidation have not yet been tested.

14. Trends and predictions

14.1 How would you describe the current landscape for doing business and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Palestine is always looking to improve its laws to introduce new and viable ways to support businesses. As a result, the laws and regulations on doing business are seen as adequate and advanced. Moreover, the regulatory bodies are usually cooperative and flexible in accommodating the specific needs of companies, given that there is a strong policy in Palestine of promoting investment by encouraging local businesses and attracting foreign investors.

The existing laws and regulations are regularly updated, so amendments to current laws should be expected – especially those that were recently introduced, such as the Companies Law (42/2021). A new IP law is also expected to be issued in the coming 12 months.

15. Tips and traps

15.1 What are your top tips for doing business smoothly in your jurisdiction and what potential sticking points would you highlight?

Palestine does not suffer from any legal vacuums or legal voids per se; rather, the main sticking point concerns how to ensure that its multiple inherited laws interact with each other in a way that protects investors and facilitates a viable legal ecosystem that is conducive to investment.

That said, our top tip is for businesses is to be aware that there are certain particularities and underlying legal realities in Palestine that should be taken into account to ensure that their investments and related transactions are designed in a way which facilitates their implementation and enforceability in an effective manner.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Doing Business In Palestine

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