How Much Does It Cost to Establish a Political Party in Israel?
An analysis of Israel's 170 registered political parties reveals the financial and bureaucratic costs of establishing a new party ahead of the Knesset elections, exploring state funding rules and shelf party alternatives.
Israel's political landscape is notoriously fractured, driven by a national sentiment that for every two citizens there are at least three opinions. Data from the Ministry of Justice reveals that between 2019 and 2024, no fewer than 66 new parties were established, bringing the current total of registered parties in the country to 170. Ahead of the upcoming elections for the 26th Knesset, where 38 lists are expected to compete, a closer look at the process reveals how much it costs to establish a party and whether anyone can do it.
The Initial Setup and Administrative Costs
On paper, the process is relatively straightforward. First, founders must choose a party name, define its objectives, draft a charter, and recruit at least 100 adult Israeli citizens living in the country who are willing to sign the establishment request. The Ministry of Justice actually recommends gathering 120 founders to account for any invalid signatures. In addition, each founder must verify their signature and submit a residency affidavit before a lawyer. The registration fee stands at 2,667 shekels, though this is supplemented by legal expenses that depend on the number of founders and required services.
However, the more substantial financial hurdle arrives at the next stage. The law requires publishing the party establishment request in the official gazette and at least three daily newspapers to allow public objections. Estimated publication costs can reach approximately 35,000 shekels. Combined with the registration fee, initial out-of-pocket expenses total roughly 37,667 shekels, excluding lawyers' fees and miscellaneous costs. The Ministry of Justice notes that processing the application can take up to 45 days if no objections are raised.
Financing Campaigns and State Subsidies
Establishing a party is merely the first step, as mounting an election campaign demands vastly greater sums. Parties must fund advertising, polling, consultants, staff, and grassroots operations. This is where state funding enters the picture: for the upcoming elections, a single financing unit is valued at 1.835 million shekels. Under a legislative amendment approved this year, qualifying new parties can receive advances of up to ten financing units—amounting to 18.35 million shekels—subject to appropriate guarantees. These are strictly advances rather than guaranteed grants.
There is also a surprising statutory provision: even a party that fails to secure a single seat in the Knesset may still receive state funds. According to the Party Financing Law, a list that wins more than 1.%, of valid votes but fails to cross the 3.25% electoral threshold may be entitled to a single financing unit, or 1.835 million shekels. Conversely, a party that spends heavily without achieving its electoral goals risks being left with severe debts.
Shelf Parties as an Alternative
For those wishing to bypass the lengthy registration process, an alternative exists: utilizing an already registered shelf party, sometimes by altering its leadership, name, or charter in accordance with legal procedures. This path was famously taken by Naftali Bennett and Ayelet Shaked in late 2018 when they established the New Right party using an existing shelf party named Tzelem. Another example is Oren Hazan, who ran in the 2019 elections at the head of the veteran Tzomet party instead of registering a new entity.
Out of the 170 registered parties in Israel, only a fraction actively compete in Knesset elections, while others remain dormant or merge into joint lists. Ultimately, while establishing a party requires administrative persistence and tens of thousands of shekels, the true challenge is not gathering signatures or funding, but convincing enough Israeli voters to cast their ballot.
