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Is that more of a notification form or an actual collaborator process with a tribunal?

The Ministry of Defense has a strong inclination to approve any such requests. It's a hassle for the company in question, but the system is set up to encourage inflow of foreign capital to build up and maintain the defense industry.

Also great opportunities for backdoor access...

In the same interview the spokesman said that some companies choose to avoid it by operating from offices outside of Israel (Bulgaria and Cyprus were mentioned). This seems to imply that the process is burdensome.

Burdensome could be as simple as there being some transparency in a completely simple notification process. Doesn’t tell much.

Sometimes I avoid listing directors of a new corporation by forming an LLC and privately filing with the IRS to treat it as a C-Corp

Doesn't mean the regulations were tough, but still burdensome in some small way

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