Osek Zair Overview
Osek Zair is a small business status in Israel that provides flexible options for entrepreneurs, allowing you to start small and scale as your business grows.
Registration Time
3-7 business days
Investment
Varies by type
Documents
ID, Business plan
Liability
Depends on structure
Advantages
- Flexible structure options
- Lower startup costs
- Simpler compliance requirements
- Easy to pivot or change direction
- Personalized guidance for your situation
Disadvantages
- May need to restructure as you grow
- Limited options for raising capital initially
- Personal liability in some structures
Who Is It For?
Ideal for first-time entrepreneurs who want expert guidance on choosing the right business structure.
Frequently Asked Questions
Common questions about starting a small business in Israel
What type of business structure should I choose?
The best structure depends on your expected income, risk tolerance, and growth plans. Osek Patur is simplest for income under 120,000 NIS. Osek Murshe offers more flexibility with no income limit. Ltd provides liability protection but requires more administration.
How much does it cost to start a business in Israel?
Costs vary by structure. Osek Patur/Murshe registration is relatively inexpensive (a few hundred NIS). Ltd company registration costs more (typically 2,000-5,000 NIS including fees). Ongoing costs include accounting services, which vary by complexity.
Can I run a business while employed?
Yes, you can operate a business while being employed. However, check your employment contract for any restrictions. You'll need to report income from both sources for tax purposes. Many people start as Osek Patur while employed.
Do I need a physical office address?
Not necessarily. For Osek Patur and Murshe, you can use your home address. Ltd companies need a registered office address, which can be your home or a virtual office service. Some businesses may require specific premises due to their nature.
How are small businesses taxed in Israel?
Self-employed individuals pay income tax on profits (10-50% based on income brackets) plus National Insurance contributions. Companies pay corporate tax (23%) on profits. VAT (17%) applies to Osek Murshe and companies but not Osek Patur.
Can I change my business structure later?
Yes, you can upgrade or change your business structure as your needs evolve. Moving from Osek Patur to Murshe is straightforward. Converting to a Ltd company requires more steps but is possible. We can guide you through any transition.