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Israel's State Comptroller report indicates that over 20% of companies—approximately 28,000 firms—continue to operate without legal licenses despite reforms that began in April 2021 aimed at speeding up licensing procedures. The report also revealed a decline in government oversight and setbacks in the digitalization project, as only three out of six regulatory agencies have been connected to the digital system so far. Meanwhile, the number of local authorities not reporting on the status of companies increased to 42 entities in 2024.
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