Osek Zair (Small Business)

A special tax track for self-employed individuals with low income. Enjoy significant reductions in income tax and National Insurance payments. Perfect for entrepreneurs, students, and home-based business owners.

Starting from185

Osek Zair Overview

Reduced tax rates for new entrepreneurs and small-scale businesses.

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.

First-time business owners
Entrepreneurs unsure which structure to choose
Small-scale service providers
Home-based businesses
Online sellers and e-commerce starters
Local service providers

Frequently Asked Questions

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.

What Our Clients Say

Google Review

״Excellent service! My LTD was registered in less than 2 days. Very professional team.״

Michael Cohen
Michael Cohen
Tech Startup Founder
Google Review

״Simple process, clear instructions. The WhatsApp support was very helpful throughout.״

Sarah Levi
Sarah Levi
Freelance Designer
Google Review

״Registered my exempt dealer status quickly. Great value for money service.״

David Katz
David Katz
Consultant
Google Review

״Professional service from start to finish. Highly recommend for business registration.״

Anna Shapiro
Anna Shapiro
E-commerce Owner
Google Review

״Fast and reliable. Got all my documents within 24 hours. Exceeded expectations!״

Yossi Berkovich
Yossi Berkovich
Restaurant Owner
Google Review

״The team was incredibly helpful with all my questions. Great customer service.״

Elena Volkov
Elena Volkov
Marketing Agency
Google Review

״Smooth process from start to finish. Would definitely use again for future businesses.״

Daniel Mor
Daniel Mor
Software Developer
Google Review

״Very affordable and professional. They handled everything perfectly.״

Rachel Ben-David
Rachel Ben-David
Online Store Owner

Monthly Management Service

Get professional bookkeeping, VAT reports, and dedicated support

  • Monthly bookkeeping
  • VAT report filing
  • Annual report preparation
  • Dedicated accountant support
95/month

+ VAT

Auto-renewal monthly

Not Sure Where to Start?

Let us help you choose the right business structure. Get personalized guidance for your situation.