Obtaining a business license

According to the Business Licensing Law, 1968, any business defined as requiring a license under the Business Licensing Ordinance must have a license to be open and to operate.

A business license is a permit issued by the Municipality to the business owner to open and operate the business in accordance with the conditions set forth in the Business Licensing Law and the accompanying regulations and orders.

It is important to note that the process of obtaining a business license takes considerable time, as it involves obtaining the approval and consent of many parties, and their consent is conditional on the fulfillment of their requirements and the compliance of the requested business with the relevant regulations.

Remember: failure to comply with the requirements will result in a refusal to grant the license and the initiation of legal proceedings.

There are different city building plans for different areas of the city. Each plan defines an area designated for residential, industrial, light industry, administrative, commercial, or mixed use. In addition, each building has a detailed plan and building permit that defines its permitted uses.

It is unthinkable that businesses would be opened and operated outside the framework of comprehensive engineering planning, as approved by the competent planning authorities. There are businesses related to public health that are required by law to take serious precautions to maintain cleanliness, hygiene, adequate sanitation conditions, and the safety and health of the public.

There are workshops and industries that produce wastewater and waste, smoke and unpleasant odors, and in order to prevent their release into the public domain, the necessary arrangements must be made in advance. There are food industries that require measures to prevent contamination and dirt in order to ensure that their products comply with the approval and standards required for their manufacture. There are types of businesses that require access routes and structural changes, accessibility for the disabled, installation of security arrangements, restroom facilities, water, etc. In order to maintain all of these, a process is carried out until the business is approved and a license is issued for its management, subject to the provisions of the Business Licensing Law and its regulations.

Please note that the license confirms that all the requirements for operating the business have been met and that all legal requirements have been fulfilled.

Obtaining a business license is a complex and complicated process that requires numerous checks and requirements. Therefore, it is not recommended to take any significant financial steps, including changes to an existing business, before checking that a business license can be issued for the address in question:

Building file: Located in the Engineering Department. Check whether the purpose is suitable for running the business. Check whether there are any building violations in the structure. It is advisable to obtain a copy of the building permit and the building plan relating to the part of the building where the business is located and keep them with you for reference.

In the Business Licensing Department: Check the information in the business file to see if there are any foreseeable problems in obtaining the license and whether the requested location has the appropriate conditions for running the requested business.

Any type of business – as defined in the Business Licensing Order (Businesses Requiring Licensing), 2013 – must have a license.

For example: restaurants, butcher shops, cafes, fruit and vegetable stores, grocery stores, snack bars, bakeries, candy and cigarette shops, ice cream, cakes and soft drinks, hairdressers and beauty salons, workshops of all kinds, factories of all kinds, production of food products of all kinds, street vending, fish shops, car garages, warehouses of all kinds, etc.

A detailed and complete list of businesses requiring a license is provided in the Business Licensing Ordinance. It can be viewed at the Business Licensing Department. A business requiring a license that operates without a license is subject to immediate administrative closure, legal action, heavy fines, and imprisonment.

Various professional offices such as lawyers, accountants, various clinics, kindergartens, and daycare centers are exempt from the business licensing requirement. There are also businesses in the commercial sector that are not required to have a business license, such as those selling clothing, shoes, bicycles, new spare parts for vehicles, household items, toys, stationery, etc.

It is recommended to check with the business licensing department regarding the requirement to obtain a business license before opening a business.

However, it should be noted that operating any type of business in a residential apartment or any other place that is not designated for that purpose according to the building permit or the applicable plan requires a “special use” permit from the local planning and building committee.

Operating a business that requires a special permit without the aforementioned permit is a violation of the law, and violators are subject to legal action, fines, and demolition/prohibition of use orders. Applications for a “special use” permit should be submitted to the Engineering Department of the Lod Municipality.

You should be aware that it is not only new businesses that require a business license to operate. Any change to an existing business, as detailed below, requires the submission of a new application:

• Addition or reduction of space, internal and external changes to the place of business;
• Addition or reduction of types of activities;
• Change or addition of ownership;

All of these require new approval from the Local Authority to continue operating the business and require approvals from all authorities and entities specified by law, which will be granted after their requirements are met.

1. Submit an application to the Business Licensing Department and pay the licensing fee.
2. Approval in principle that the business is being used in accordance with the Planning and Building Law *
3. Approval from the Department of Environmental Protection
4. Approval from the Fire Department **
5. Approval from the Israel Police **
6. Approval from a veterinarian and a sewage engineer
7. Approval from the Ministry of Labor or the Ministry of Transportation **
8. Approval from the Ministry of Health and/or the Ministry of Environmental Protection
9. Issuance of a license, including acceptance of conditions and signing of a declaration.

When the requested use constitutes “non-conforming use,” approval will be required from the committee authorized to approve non-conforming uses under the Planning and Building Law, including publication and hearing of objections, if any.

Depends on the type of business

Note: Some of the steps are performed simultaneously.

In accordance with business licensing regulations and subject to the Planning and Construction Law, every business requiring a license must submit a business management plan. The Business Licensing Department will require an up-to-date plan for the structure or nature of the business in all cases. This requirement will be sent in writing to the business owner.

• The plan shall be submitted in 4 copies, each copy on a single continuous sheet (folded like an accordion). If additional copies are required, special instructions will be provided.
• At the top of the plan, on the right-hand side, the business identification details and the business plan author shall appear as detailed below:

1.  Nature of the business.
2.  Names and addresses of the business owners.
3.  Full address of the business, neighborhood, house number, floor, landline and mobile phone numbers. In a commercial center, the name of the center and the store number will be required.
4.  Building file number and business license file number.
5.  Block and land parcel number as listed in the land registry.
6.  Property tax number according to the tax department records.
7.  Name and address of the business plan author.
8.  Signatures of the business plan author and the business owner.
9.  Date of business plan preparation.
10.  Table detailing the business areas by purpose and their total sum as specified.
    • The plan shall detail (from right to left):
      1. Site plan: at a scale of 1:2500. The plot boundary shall be marked with a thick line.
      2. Plot diagram (site map): at a scale of 1:250, on which the business area and its boundaries will be marked with a thick line. The connection of the business to the municipal water and sewage lines must be marked. The diagram will indicate the parking spaces belonging to the business, including operational parking for businesses that handle vehicles.
      3. Business plan: at a scale of 1:100, detailing:
         • The diagram is accurate.
         • Markings of the overall length and width of each room, openings, corners, and other relevant spaces.
         • Internal height of the building.
         • Ventilation arrangements;
         • Details of the business rooms and their purpose;
         • Details of equipment, sanitary plumbing, garbage arrangements, ventilation and air conditioning systems, location
         • Sanitary fixtures, toilets, etc.;
         • Chimney and ventilation systems, indicating the height of the chimney;
         • Floor indication for each section.
      4. Two cross-sectional elevation drawings at a scale of 1:100 with details of all dimensions and reflections of existing engineering components in the plan space. Toilets, storage rooms, or other components that are not adjacent to the business but belong to it should be noted separately on the plan.
      5. Plans for a restaurant, food production facility, pharmacy, and barbershop shall also include: a plan at a scale of 1:50 with all equipment and its exact layout in the hall and kitchen, and the location of all sanitary fixtures: (sinks, drains, ventilation, toilets, cabinets, ovens, stoves, refrigerators, smoke and odor extraction systems, etc.).
         Important: All parts of the plan should be oriented to the north in the same way.
      • Complex plans and plans for food-related businesses should be submitted for preliminary approval to the Business Licensing Department.
      • The plans require approval by a licensing engineer, and in the case of a food business, food production, large restaurant, or pharmacy, prior approval is required from the Ministry of Health, food services or district pharmacist, and the veterinary department.
      • Garbage: Businesses that generate a lot of garbage will need to have their plans approved for garbage disposal and cleanliness arrangements. The plans will be approved by the Engineering Department and the Sanitation Division.
      • Sewage: Businesses that need to connect to the sewage system will need approval from a sewage engineer from the Mei Lod Water Company. In the case of sewage containing toxic materials, special arrangements and facilities will be required, as well as approval from the Environmental Quality Department.
      • Changes to the business: No construction work or changes to the business may be carried out without a permit in accordance with the Planning and Construction Law and in accordance with the approved business management plan. Any internal or external changes to the business require the submission of new plans. Before making changes to the business, it is recommended to submit the plan for a preliminary opinion.

The Business Licensing Department is also responsible for issuing various permits to businesses in accordance with the by-laws as detailed below:

• Permit to place tables and chairs on the sidewalk - The above permit will be granted to restaurants only, in accordance with the Lod Bylaw (Street Preservation), 1976, and must be renewed annually. Applications for permits must be submitted to the Business Licensing Department, accompanied by two copies of a diagram detailing the dimensions of the area. The diagram must include the area up to the road and show any obstacles and objects located therein. Permits for placing tables will be issued after the data has been checked on site. The permit is subject to a fee calculated according to the number of tables approved. Warning! Businesses that have received complaints about nuisances, and the complaints have been found to be justified, will not have their permits renewed.
• Approval for a one-time performance - Approval for a one-time performance or for a limited period by a non-municipal entity (in a place that is not equipped with a license to perform in front of an audience) must be submitted to the Business Licensing Department. The application will be forwarded for approval by the relevant external entities. It is prohibited to hold outdoor performances without a valid license.
• Approval for signing and lottery booths - A request for approval to set up signing and lottery booths must be submitted in accordance with the law to the Business Licensing Department. The approval issued will be limited in time and will determine the locations where the booths may be set up. The licensing authority will periodically designate areas where the placement of such stands is prohibited.
• Street vending - Street vending is subject to licensing.
• Food or other deliveries - No deliveries of any kind will be permitted unless a license has been granted.
• Organizing games - There is a limit to the number of businesses permitted in each area. It is recommended to check whether a license for this type of business can be obtained before opening it.
• Supervision - All businesses and special permits will be supervised and enforced by municipal inspectors. A business that does not meet the requirements and conditions of the license may be closed by administrative order or court order, or by revoking the business license in accordance with the Business Licensing Law. Violation of the by-laws will result in fines and legal proceedings.

The areas listed below are the minimum required and are calculated for up to 30 seats. The permitted and prohibited items for preparation and sale in a restaurant, according to type, are also listed, as detailed in the Business Licensing Regulations (Proper Sanitary Conditions in Restaurants) of 1983. An increase in seating will require an increase in the size of the service rooms.

• Cafeteria
  • Kitchen area no less than 8 m² + 4 m² storage room. Guest room area 23 m², total 35 m².
  • - It is permitted to prepare and sell for consumption on the premises: hot drinks, sandwiches, vegetable soups or ready-made soups from powder, and omelets.
  • - It is permitted to sell for consumption on the premises: cakes, sweets, ice cream, soft drinks, and salads.
  • It is prohibited to prepare, store, or sell dishes containing animal products, including fish, meat, and poultry, with the exception of salami and hot dogs.
     
• Café
  • The kitchen area must be at least 10 m² + a 6 m² storage room. The guest hall area is 29 m², for a total of 45 m².
  • - Permitted to prepare and sell: hot drinks, sandwiches of all kinds, omelets or salads, and dishes that do not contain animal products for consumption on site.
  • - Permitted for sale: cakes, sweets, ice cream, or cold beverages, provided that the products were purchased from a source licensed under the Business Licensing Law.
  • It is prohibited to prepare, hold, or sell foods containing animal products, fish of any kind, including meat and poultry, with the exception of salami or hot dogs.
     
• Restaurant/other eating establishment
   
  • Kitchen area of at least 12 square meters + 8 square meter storage room, guest room area of 35 square meters, for a total of 55 square meters. Cooked meals may be prepared and sold.
     
• Pizza or bourekas snack bar
  • Kitchen area no less than 10 square meters + 6 square meter storage room, guest room area 23 square meters, total 39 square meters.
  • It is prohibited to prepare, hold, or sell food containing meat, except for canned fish, salami, and hot dogs.
     
• Falafel kiosk
   
  • The kitchen area must be no less than 10 square meters, with a 6-square-meter storage room and a 15-square-meter guest room, for a total of 31 square meters. An exhaust fan is required above the frying facility to absorb odors.
     
• Shawarma
   
  • The kitchen area must be 12 square meters, the storage area 8 square meters, and the dining room and restroom area 25 square meters, for a total of 45 square meters. If the business also prepares and sells salads, French fries, and soft drinks, it must have separate restrooms. Arrangements must be made to prevent air and odor pollution, and separate surfaces must be provided for preparing shawarma and salads.
     
• Food and beverages served outside the business premises – Catering
   
  • The business premises and equipment required will be according to a special plan approved by the Ministry of Health. The business premises shall be no less than 12 m² for the kitchen, 8 m² for the storeroom, and 28 m² for the entrance hall. A total of 48 m².
     
• Banquet Hall
   
  • Any place used for preparing refreshments and meals for social or family events shall be defined as such. The area of the rooms shall be according to the following percentage distribution: kitchen 20 square meters, storage room 12 square meters, dining room and service rooms together 68 square meters, for a total of 100 square meters. For more than 10 employees, a dressing room is be required for more than 10 employees.
     
• Restrooms
   
  • Every business shall have service rooms that include restrooms – urinals and sinks in the numbers specified below:
  • Up to 30 guests – one toilet and one sink shared by women and men, except for restaurants and cafes, which must have separate restrooms for men and women.
• Adjacent to the restrooms, a changing room for employees must be installed with adequate space for storing their clothes.
• The restrooms shall be adjacent to the business and connected to it by a ventilated entrance.
• In businesses such as cafeterias, pizzerias, falafel and burekas, the restrooms may be located outside the business premises, at a distance not exceeding 25 meters from it, provided that they are for the exclusive use of the cafeteria employees and its guests.
• If the sink for washing hands is located inside the toilet cubicle or if the toilet is located outside the premises of the business as stated in sub-regulation (d), there shall also be a sink for washing hands in the dining room.