Business Overview
VAT-free self-employment status with minimal reporting requirements.
Registration Time
2-3 business days
Income Limit
Up to 120,000 NIS/year
Documents
ID only
Liability
Personal (unlimited)
Advantages
- No VAT collection or reporting required
- Simplest and fastest registration process
- Minimal bookkeeping requirements
- Lower accounting costs
- Easy to upgrade to Licensed Dealer later
Disadvantages
- Income limited to 120,000 NIS per year
- Cannot claim VAT refunds on purchases
- Personal liability for business debts
- Less professional image for some clients
Who Is It For?
Perfect for those starting out or running a small side business with limited income expectations.
Frequently Asked Questions
What is the income limit for Osek Patur?
The current income limit for Osek Patur is 120,000 NIS per year. If your income exceeds this threshold, you must upgrade to Osek Murshe (Licensed Dealer) and start charging VAT.
Do I need to charge VAT as an Exempt Dealer?
No, as an Osek Patur you are exempt from charging VAT on your services or products. This can make your prices more competitive for individual customers who cannot claim VAT back.
Can I have multiple clients as an Exempt Dealer?
Yes, you can work with as many clients as you want. The only limitation is your total annual income, which cannot exceed 120,000 NIS. There are no restrictions on the number of clients or projects.
What expenses can I deduct?
You can deduct legitimate business expenses from your taxable income, including equipment, software, office supplies, professional development, and work-related travel. However, you cannot claim VAT refunds on these purchases.
How do I report my income?
Osek Patur files an annual income tax return. You should keep records of all income and expenses throughout the year. Many choose to work with an accountant, though it's not mandatory for this simple business structure.
Can I upgrade to Osek Murshe later?
Yes, you can voluntarily upgrade to Osek Murshe at any time, or you'll be required to upgrade when your income exceeds 120,000 NIS. The upgrade process is straightforward and we can assist you with the transition.
What Our Clients Say
״Excellent service! My LTD was registered in less than 2 days. Very professional team.״
״Simple process, clear instructions. The WhatsApp support was very helpful throughout.״
״Registered my exempt dealer status quickly. Great value for money service.״
״Professional service from start to finish. Highly recommend for business registration.״
״Fast and reliable. Got all my documents within 24 hours. Exceeded expectations!״
״The team was incredibly helpful with all my questions. Great customer service.״
״Smooth process from start to finish. Would definitely use again for future businesses.״
״Very affordable and professional. They handled everything perfectly.״
Monthly Management Service
Get professional bookkeeping, VAT reports, and dedicated support
- Monthly bookkeeping
- VAT report filing
- Annual report preparation
- Dedicated accountant support
+ VAT
Auto-renewal monthly