TEL AVIV, July 11 Nearly all Israeli companies
registered in the United States are incorporated in Delaware and
the state's governor, Jack Markell, is seeking to persuade some
of those companies to make the state their headquarters for
their U.S. operations as well.
Thousands of Israel-based businesses are incorporated in
Delaware, including high-tech companies Check Point Software
Technologies, Amdocs, Ceva and Nice
The reason so many companies choose to incorporate in
Delaware has to do with the nature of the state's corporate law,
which is well understood and predictable, as well as its highly
regarded courts, Markell said. Now he wants Israeli companies to
go beyond corporation.
"We recognise that when businesses in Israel start up, they
have to think beyond Israel from day one because the market here
isn't big enough. One of the first places people think about
doing business with is North America," he told Reuters during a
visit to Tel Aviv. "Delaware can be a soft landing."
Because it is one of the smallest U.S. states, located
between New York and Washington, Delaware has built a system
that minimises red tape for businesses, eliminates regulatory
hurdles and provides business leaders with easy access to senior
Markell noted that other foreign companies such as British
drug firm AstraZeneca have their North American
headquarters located in Delaware.
"We want to make sure we are on the radar screen," said
Markell, who took office in 2009 and is the only sitting Jewish
governor in the United States.
Some 55 percent of U.S. publicly traded companies have their
legal homes in Delaware.
Markell is leading a delegation of Delaware entrepreneurs
and business leaders who are also seeking to do business in
Israel as well as opportunities for collaboration.