Business Overview
A Licensed Dealer (Osek Murshe) is a self-employed business registration that requires VAT collection and reporting, suitable for higher-income businesses.
Registration Time
3-5 business days
Income Limit
No maximum limit
Documents
ID, Bank details
Liability
Personal (unlimited)
Advantages
- No income ceiling - grow without restrictions
- Can claim VAT refunds on business expenses
- More professional image than exempt dealer
- Simple registration process
- Lower costs than company registration
Disadvantages
- Personal liability for all business debts
- Must charge and report VAT (17%)
- Monthly/bi-monthly VAT reporting required
- Cannot easily bring in partners or investors
- Higher tax burden at high income levels
Who Is It For?
Ideal for freelancers and self-employed professionals expecting income above 120,000 NIS annually.
Frequently Asked Questions
Common questions about registering as a Licensed Dealer in Israel
What is the difference between Osek Murshe and Osek Patur?
The main difference is the income limit and VAT obligations. Osek Murshe (Licensed Dealer) has no income limit but must charge and report VAT. Osek Patur (Exempt Dealer) is limited to 120,000 NIS annually but doesn't charge VAT.
When do I need to upgrade from Osek Patur to Osek Murshe?
You must upgrade to Osek Murshe when your annual income exceeds 120,000 NIS, or if you voluntarily choose to do so for business reasons (like claiming VAT refunds or working with larger clients).
How often do I need to report VAT?
VAT reporting frequency depends on your turnover. Most Licensed Dealers report bi-monthly (every two months). High-turnover businesses may need to report monthly. Reports are submitted through the Tax Authority's online system.
Can I deduct business expenses from my income?
Yes, as an Osek Murshe you can deduct legitimate business expenses and claim VAT refunds on purchases related to your business. This includes equipment, supplies, professional services, and other operational costs.
Do I need to hire an accountant?
While not legally required, it's highly recommended to work with an accountant. They help ensure compliance with tax laws, maximize deductions, and handle VAT reports correctly. Many Osek Murshe hire accountants for peace of mind.
What happens if I exceed the income threshold?
If you were an Osek Patur and exceed 120,000 NIS, you'll automatically be reclassified as Osek Murshe and must start charging VAT. We can help you transition smoothly and set up proper VAT procedures.