Three Key Tips for Starting a New Business in Israel

THREE KEY TIPS FOR STARTING A NEW BUSINESS IN ISRAEL

Are you going to start a new business, or develop a hobby in a real business? Or are you an experienced entrepreneur who has decided to expand the geography of his enterprise to Israel? Our recommendations will be useful to anyone, regardless of the scale of your plans and type of business.

Are you going to start a new business, or develop a hobby in a real business? Or are you an experienced entrepreneur who has decided to expand the geography of his enterprise to Israel? Our recommendations will be useful to anyone, regardless of the scale of your plans and type of business.

Choose the legal form for the new company in advance.

In Israel, the most common are three types of legal form of business. The division is based on the size of the company and on the number of founders.

Osek Patur – a small business, limited to an annual income of 99,003 shekels (data yes 2018, the limit changes annually), but is exempt from VAT.

Osek Murshe – this type of business is the most common in Israel, has no income restrictions, must pay VAT, but is entitled to a VAT refund.

Hevra Baam or limited liability company – is suitable for registering a large business with several founders and a large staff.

Read more how to start an Osek patur https://auditing.co.il/en/bookkeeping-services/start-business/ or another type of business.

Ensure the support of a competent Rohe Heshbon

Almost all representatives of small and medium-sized businesses in Israel have outsourcing accounting services (https://auditing.co.il/en/).

Accounting and tax records are the key to the success of any business. According to statistics, most Israeli companies give their preference not to a full-time accountant, but delegate certain functions to an external qualified employee.

The reasons are quite simple

• Save time. A starting entrepreneur needs to spend a lot of time and effort searching for customers, organizing purchases and sales, exploring new markets and other activities aimed at establishing and developing a business. Therefore, if there is an area that can be outsourced, it is better to do this and save time on the main business. As experience shows, professional companies do an excellent job with bookkeeping.

• Cost saving. A specialist is hired to solve specific problems (tax calculation, reporting), which means there is no need to pay a monthly salary to an employee who sits without work most of the time.

• The opportunity to learn from someone else’s experience. A professional accounting company leads hundreds and sometimes thousands of clients at the same time. They are well aware of all the challenges that await a starting entrepreneur and will help them get around. They are interested in the development of their customers and long-term cooperation.

• Tax reporting without errors and on time.

The minimum costs several times a year for the services of a professional accountant will allow you to keep documents in order, correctly make tax calculations and report to fiscal authorities on time.