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A business launch with a financial plan

Open a business in Israel:
choose your status by the numbers
and plan the first year

We help new immigrants and foreign founders choose between Osek Patur, Osek Murshe and an Ltd company, build a launch plan and a first-year forecast, prepare the documents and accompany the process. The applications to VAT (Ma'am), Income Tax and Bituach Leumi are filed by a certified accountant: our partner CPA or your own. Meetings are in Hebrew or Russian, on Zoom or at our Petah Tikva office.

Compare business types
Three options

Which status should you choose?

Osek Patur (עוסק פטור)
Turnover up to ~₪120,000 a year. Does not charge VAT (Ma'am). Suits freelancers and very small businesses.
Osek Murshe (עוסק מורשה)
No turnover cap. Issues invoices with VAT and reclaims VAT on expenses and equipment.
Ltd company (חברה בע״מ)
A separate legal entity with limited liability. Corporate tax 23%. Suits partnerships and larger contracts.
15 min
Free diagnostic call
HE / RU
Meetings in Hebrew or Russian
Up to ₪500K
Preferential loan for new businesses
Zoom
or a meeting at our Petah Tikva office
Business types

Osek Patur, Osek Murshe or Ltd: the differences

Your status decides whether you charge VAT, how often you report and how much tax you pay on profit. You can change it later, but it is easier to choose well from the start, based on a first-year forecast.

Osek Patur (עוסק פטור)

For people starting out and for side work. An Osek Patur does not charge VAT, so it cannot reclaim VAT on expenses.

  • Annual turnover up to ~₪120,000
  • Simple reporting once a year
  • The law bars some professions from this status

Osek Murshe (עוסק מורשה)

A self-employed business with full commercial activity: hiring employees, selling to companies and to private customers.

  • No turnover cap
  • Reclaims VAT on business purchases
  • Regular VAT reports (every 1-2 months)

Ltd company (חברה בע״מ)

A separate legal entity. The owners' personal assets are kept apart from company debts, though banks often ask for a personal guarantee on loans. Usually pays off at a net profit of ₪350-400K a year or more.

  • Flat corporate tax of 23%
  • Shares divided between partners
  • Double-entry bookkeeping
Who does what

What we do and what the accountant does

Applications to the tax authorities are filed by a certified accountant. We handle the financial side of the launch and stay with you to the end.

Our part

  • Choosing the status from your expected income and expenses
  • A launch plan: the order of steps and how much money the first months need
  • A first-year forecast with VAT, tax advances and Bituach Leumi
  • The documents the accountant and the bank will ask for
  • Support until the business opens: the accountant, a business bank account and a loan if needed

The accountant's part

  • Filing to open files with VAT, Income Tax and Bituach Leumi
  • Setting the tax advances (mikdamot) and ongoing reports
  • Bookkeeping and the annual report
  • Personal tax advice

Our partner CPA or your own accountant, whichever you prefer.

In a running business the split looks the same: the accountant reports to the authorities, and a fractional CFO plans the money.

Step by step

Opening a business in five steps

Forecast and status choice

A first-year forecast comparing the expected tax and costs under each status, prepared with the accountant, who gives the personal tax advice.

Opening a VAT file

The accountant files the application and gets a file number. We prepare the data: line of business, expected turnover, first expenses.

Income Tax and Bituach Leumi

The accountant opens the files and sets the advances. We add them to the payment forecast so they don't surprise your cash flow.

Business bank account

A business account, checkbooks and card clearing. We prepare the plan and forecast for the bank.

Bookkeeping and funding

Invoicing software, a monthly cash flow table and, if needed, a loan application for a new business.

Plan and funding

A launch plan and funding for the first months

The launch plan answers one question: how much money the business needs until income covers expenses. The monthly forecast covers revenue, fixed and variable costs, VAT, tax advances and Bituach Leumi, so you see in advance which month may run short.

Money for the first months comes from own capital or credit. New businesses can apply for a state-guaranteed loan on preferential terms, up to ₪500,000. The bank and the fund will want a proper forecast, which also becomes the basis for a business plan for the bank.

Short answers

Questions about opening a business in Israel

Can I open a business while working as an employee?

Yes. In Israel you may combine a salaried job with self-employment (sachir ve-atzmai). At year end you file a combined annual report and the tax is recalculated (tiyum mas).

Do I need a separate bank account for an Osek Murshe?

The law allows a personal account, but we recommend a business account from the start. It keeps personal and business money apart, and a state-guaranteed loan requires one anyway.

When does it make sense to move from Osek Murshe to an Ltd company?

Usually when net profit exceeds ₪350,000 - ₪400,000 a year: personal income tax reaches 47-50%, while corporate tax is 23%. Another reason is high financial risk. The exact calculation, including tax on taking profits out of the company, is done with the accountant.

Who files the applications with VAT, Income Tax and Bituach Leumi?

A certified accountant: our partner CPA or your own. We do not represent clients before the tax authorities. We help choose the status, prepare the plan, forecast and documents, and accompany the process until the business opens.

How much does the support cost?

The first step is a free 15-minute diagnostic call to work out what you need: only the status choice, or also a launch plan, a forecast and support. That part is paid work: the price is set after the call, based on the scope, and agreed before we start.

What language are the meetings in, and where are they held?

Hebrew or Russian. We meet on Zoom or at our office in Petah Tikva: B.S.R City, Tower I, 12th floor.

Free diagnostic call: which status fits your business

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