Opening files for a new business has never been easier

Opening files for a new business is one of the first steps towards independence. At start business (opens in a new tab), you can begin the online registration, fill out a questionnaire, and upload the required documents. We will handle the registration process for you, so you can focus your time and energy on preparing for your business, your first customers, and the service you want to provide.

You can also register on your own. To help you decide how to proceed, we will start with how our service works, and then explain what is required for independent registration. The guide focuses on a sole proprietorship, either as an exempt dealer or a licensed dealer. Establishing a Ltd company requires a separate and additional process.

Start your business registration online with start business

When opening a business, it’s not always clear which form belongs to which authority and what needs to be prepared in advance. Our service centralizes the beginning of the process: you enter the registration questionnaire, fill in the business details, and upload the required documents according to the type of activity. Payment is made after uploading the documents.

Based on the details and documents you provided, we handle the business registration with VAT, Income Tax, and National Insurance, as applicable. The questionnaire is available in Hebrew, Russian, and English, and you can contact us via WhatsApp with questions about the process. It’s important to distinguish between submitting registration requests and receiving approvals: the completion of the process also depends on the authorities' review and requirements for additional information.

Want to open the files yourself? Start by choosing the classification

Before filling out forms, you need to determine whether the activity will be registered as an exempt dealer or a licensed dealer for VAT. The choice depends on the expected turnover and the type of occupation. Turnover is the total income from the business before deducting expenses, not the profit that remains for you. Some professions require registration as a licensed dealer even when the initial income is low. The current conditions can be checked in the Israel Tax Authority's guide for new dealers.

It’s also important to clarify the term small dealer. This is a track under Income Tax, subject to eligibility conditions, and not an additional classification under VAT. Therefore, the question of whether to register as an exempt or licensed dealer is considered separately from the option to join the small dealer track. If you are unsure, consulting with an accountant before submission can save you corrections later. Israel Tax Authority

How to register with VAT, Income Tax, and National Insurance?

The process varies according to the type of dealer. An exempt dealer has access to an online government service that allows submitting a request to open files with VAT and Income Tax together. A licensed dealer has a specific registration request for VAT, and it must be ensured that the registration with Income Tax is also completed. Here’s how to proceed:

1. Prepare details and documents. ID card, bank account verification, and details about the planned activity. Depending on the case, documents regarding the business location and occupation may also be required. Check the list in the relevant service before submitting.

2. Submit a registration request with VAT. An exempt dealer starts with the online opening service. A licensed dealer follows the instructions in the request to open a licensed dealer file, Form 821.

3. Complete the registration with Income Tax. In the online opening for an exempt dealer, the request also includes Income Tax. In another track, you need to check with the tax office what is required to open the file, including Form 5329 according to the instructions.

4. Arrange the registration with National Insurance. When the process with the tax authorities allows it, request to open a file with National Insurance and fill in the required details. If the file is not opened in this framework, submit a multi-year report to National Insurance.

5. Check that the process is completed. Keep the submission confirmations, follow up on notifications and requests for completion, and ensure that you have received appropriate approval from each body.

In the request to National Insurance, you also fill in data about the scope of activity and expected income. This data is used to determine the status and insurance premiums, so it’s important to provide a realistic estimate and update it when changes occur. National Insurance guidelines for opening an independent file explain both the combined track and the option for separate opening. Israel Tax Authority

Complete the registration and prepare for the first payment

After receiving the approvals, it’s important to understand which documents you will issue to customers and what reporting obligations apply to you. An exempt dealer does not issue a tax invoice, and the exemption in VAT does not eliminate other obligations of the business. Before receiving the first payment, arrange a suitable way to issue documents and keep track of income and expenses, and check the bookkeeping rules applicable to the activity.

Opening the business and ongoing management are two different stages. Those who need accounting, an annual report, or representation before the tax authorities can check the support services of our partner EA&CO. It’s advisable to clarify in advance what the chosen service includes, so you know who handles each task after registration.

Frequently Asked Questions

Do you need an accountant to open files for a new business?

You do not need to consult an accountant to open a sole proprietorship. You can submit requests independently, according to the registration track and the instructions of each body. However, the responsibility for the details and completing the registration remains with you. If you are unsure about the classification, expected income, or reporting obligations, it’s advisable to get a professional review before submission.

Does opening an exempt dealer file on the Israel Tax Authority website cost money?

The online government service for opening an exempt dealer file is provided at no cost. If you choose a commercial service that handles registration, you will pay for the service according to its terms. It’s important to separate the cost of opening the files from possible expenses after the opening, such as a document issuance system or professional assistance in the ongoing management of the business.

Is opening a file with the Israel Tax Authority sufficient for National Insurance?

There is a combined process that allows submitting a request to open a file with National Insurance as well, but you need to fill in the required details and ensure that the registration is completed. If you have already registered with the Israel Tax Authority and only need to arrange National Insurance, you can submit a multi-year report. Do not rely on a submission confirmation from one body as proof of completing the entire process. National Insurance

Is the guide also suitable for opening a Ltd company?

The guide focuses on opening a business as a sole proprietorship. A Ltd company also requires registration with the Companies Registrar and opening files in the name of the company, with documents suitable for a corporation. You cannot rely on the track intended for exempt dealers for it. If you are considering a Ltd company, it’s advisable to check with an accountant about the suitability for the activity and the ongoing obligations and costs before starting.

Does opening tax files replace a business license?

No. Registration with VAT, Income Tax, and National Insurance does not replace a business license if your activity requires one. Before opening a location or starting an activity that has licensing requirements, check with the local authority what approvals and documents are needed. This is a separate inquiry that should be done in advance, especially before committing to a lease or investing in equipment. Ministry of the Interior

You can carry out the process yourself, or you can start through the registration questionnaire of start business. We would be happy to assist you and guide you through the process. You focus on the business, and we will focus on the bureaucracy.