Hedva Lichtenstein CPA · 054-426-2274 · contact@hl-cpa.co.il

Opening a business in Israel – checklist

Registration must happen no later than the first day of activity. Osek patur in 2026: expected turnover up to 122,833 ILS.

Documents for registration

ID card (or passport for new residents)
Bank account confirmation or a voided chequeA separate business account from day one is strongly recommended.
Lease or purchase contract for the business premisesWorking from home: your apartment lease.
Professional licence, if the occupation requires one(if relevant)
A realistic estimate of expected annual turnoverDecides patur vs murshe. Turnover = revenue, not profit.
For a company: certificate of incorporation, articles, board resolution, directors' and shareholders' details(if relevant)

VAT – register as a dealer (form 821) and set the status: patur or murshe
Income tax – open a file (form 5329) and set advance payments
National Insurance – register as self-employed and set monthly contributionsIn 2026: 7.7% up to 7,703 ILS a month and 18% above.

Request a withholding-tax exemption certificateWithout it business customers withhold tax from every payment.
Request a bookkeeping certificateRequired by public bodies and large customers.
Choose invoicing softwareOsek murshe: make sure it connects to the Tax Authority for allocation numbers (threshold 5,000 ILS from 1 June 2026).
Check mandatory pension contributions(if relevant)Self-employed aged 21–60 are required after 6 months of VAT registration.
Set a yearly reminder to renew both certificates

In a free initial consultation we choose the right structure together and open the files correctly from day one: 054-426-2274.

Printed from https://www.hl-cpa.co.il/en/checklists/opening-a-business on 31/10/2026 · https://www.hl-cpa.co.il