Key Takeaways
- There is no official processing time for opening an Osek Murshe: when your documents are complete, the VAT file is opened at the regional VAT office or through a representative, and at the end of registration you receive a temporary Osek Murshe certificate. The permanent certificate arrives by post, usually after a few weeks.
- You must register as an Osek Murshe when your annual turnover is expected to exceed NIS 122,833 (as of 2026), and in professions such as law, accounting, medicine and architecture regardless of turnover.
- To open a VAT file you prepare a completed and signed Form 821, your ID card, the lease or purchase contract for your business premises, the bank's account-management confirmation, and proof of expected activity, such as equipment invoices or a client agreement.
- You register with two bodies: the Israel Tax Authority opens a VAT file (Form 821) and an income tax file (Form 5329), and you also notify National Insurance, on Form 6101 or on National Insurance's online form. A representative linked to SHAAM, the Tax Authority's computer system, can open both the VAT file and the income tax file in one online request.
- You must register no later than the day your business activity starts. After registration, an Osek Murshe files a VAT report every month or every two months and pays monthly National Insurance advances.
1. When Should You Open an Osek Murshe?
Decided to go independent? That is exciting. But just as you are filled with energy to start, the question arises: "What now? How do I turn my idea into a real business?" Do not worry. Opening an Osek Murshe (licensed dealer), which can sometimes sound like a complicated process, is much less intimidating when you have the right support.
Keep is here to make this journey simpler: opening your file with the authorities, unlimited invoices and receipts on every plan, and, on the recommended plan, a personal accountant for professional guidance. Once registration is complete, you can issue invoices and run a business that operates professionally and legally.
Here are the situations when you should consider opening an Osek Murshe:
- Growing turnover -- If your annual turnover is expected to exceed NIS 122,833 (as of 2026), the law requires you to register as an Osek Murshe, so it is worth preparing as soon as you approach the ceiling.
- Profession that requires it -- Certain professions such as lawyers, accountants, doctors, and architects are required by law to open an Osek Murshe, regardless of income level.
- Business clients -- If your clients are businesses that need tax invoices for VAT deductions, an Osek Murshe is the right solution.
- Business is growing -- If your business is expanding and you are handling more clients and transactions, an Osek Murshe is your next step.
You can also ask to register as an Osek Murshe below the ceiling. This pays off mainly when your business has large expenses that carry VAT, because an Osek Murshe deducts that VAT. If you sell mostly to private customers, you will have to add VAT to your price or absorb it, so it is worth doing the numbers before you decide.
2. How Long Does It Really Take?
Opening an Osek Murshe can be straightforward, especially with an organized process and all documents prepared in advance. The Tax Authority does not publish an official processing time. At the end of VAT registration you receive a temporary Osek Murshe certificate, and the permanent certificate arrives by post, usually after a few weeks.
The process is divided into several defined stages: VAT registration, opening an income tax file, and registering with National Insurance. With proper guidance and advance preparation, you can shorten the process and avoid unnecessary delays.
How long the process takes depends mainly on appointment availability at the VAT office, on how you file (yourself or through a representative), and on whether the VAT office asks for more documents. To reduce the chance of such a request, attach clear proof of expected activity from the start, such as an agreement with a first client or an invoice for equipment bought for the business.
3. Step-by-Step Process
Step 1: Gathering Documents
The first step involves preparing all required documents: a completed and signed Form 821, your Israeli ID card, the lease or purchase contract for your business premises, the bank's account-management confirmation, and proof of expected activity, such as equipment invoices or a client agreement. It sounds like a lot, but with proper guidance, it is simpler than it looks.
Step 2: VAT Registration
An Osek Murshe opens a VAT file at the regional VAT office, by appointment, or through a representative linked to SHAAM, the Tax Authority's computer system, such as an accountant or tax adviser. Your dealer number is your ID number, so there is no new number to wait for. When you open the file through Keep, Keep ensures all details are in order, so you do not have to deal with tedious procedures.
Step 3: Income Tax Registration
After VAT registration, you move to the next stage: opening an income tax file with Form 5329. That is the order when you file yourself; a representative linked to SHAAM can open both Tax Authority files in one online request. Again, Keep is here to fill out the forms for you and make sure everything is in place.
Step 4: National Insurance
Registering your business with the National Insurance Institute is the final step. A self-employed person must notify National Insurance as soon as they start working, on Form 6101 or on National Insurance's online form, and then pays monthly advances based on the income they declared.
The Osek Murshe certificate must be displayed prominently at your place of business. Your dealer number, together with the words "Osek Murshe", must appear on every tax invoice.
4. How Keep Helps You Through the Process
- Professional guidance at eye level -- On the recommended plan, a personal accountant helps you understand exactly what is needed and explains every step of the process.
- Opening your file with the authorities -- Keep handles opening your file with the authorities, and once it is open you can issue invoices and receipts from the mobile app as well.
- Bureaucracy management -- The recommended plan includes reports and payments to the tax authorities, VAT reports, and personal representation before the tax authorities. Less paperwork, less mess, more peace of mind.
- A clear picture -- Once your business is open, every plan shows the status of your documents and payments, and which clients still owe you money.
Opening your file with the authorities through Keep is a one-time NIS 99 + VAT. The plans cost NIS 39 a month + VAT on the basic plan and NIS 105 a month + VAT on the recommended plan, and an Osek Murshe pays an extra NIS 123 a month including VAT on top (as of September 2026). There is no commitment, and you can switch plans at any time at no cost.
5. What Happens After Opening Your Osek Murshe?
Now that you are a licensed dealer, you can start working for real -- without unnecessary worries. With Keep by your side, everything related to financial management becomes simple and easy.
Invoices and Receipts -- Unlimited
Every transaction? The document is already ready. You can issue unlimited invoices, receipts and other income documents as digitally signed PDFs on every plan -- no printing, scanning, or running around.
Organized Financial Management
Keep provides you with tools to track your expenses and income easily. Every plan has a dashboard showing income, expenses and profit for a date range you choose, and on the recommended plan you upload business expenses in a click, as a photo or file. Everything is in one place, clear and accessible at any moment.
Legal Compliance -- Without Headaches
An Osek Murshe files periodic VAT reports, reports and pays income tax advances when they are set, and pays monthly National Insurance advances. As long as you have no employees, there is no periodic report to file with National Insurance. On the recommended plan, reports and payments to the tax authorities and VAT reports are part of the service. When everything is filed on time, you not only avoid fines -- you also gain peace of mind.
The Tax Authority sets your VAT reporting frequency by turnover: in 2026, a dealer with turnover up to NIS 1,775,000 reports every two months, and above that every month. You file and pay by the 15th of the month after the reporting period, and you file a zero report even for a period with no activity.
6. Tips for a Smooth Process
- Prepare all documents in advance -- Make sure you have all the required documents: Form 821, your ID card, the bank's account-management confirmation, the lease or purchase contract for your business premises, and proof of expected activity. When everything is organized in advance, you save valuable time and prevent delays.
- Work with someone who knows the system -- Opening an Osek Murshe means registering with the Israel Tax Authority (VAT and income tax) and with the National Insurance Institute. The bureaucracy becomes much simpler when you have a professional guiding you. Keep's recommended plan includes a personal accountant for professional guidance and representation before the tax authorities.
- Do not hesitate to ask questions -- Every question is legitimate. On the recommended plan, your personal accountant is there to explain and help you feel in control throughout the entire process. The more you ask, the better you will understand the process and go through it with more confidence.
A common mistake is waiting to register until the first client arrives. The law requires you to register for VAT no later than the day your activity starts, and if you have a long set-up period, such as renovating premises or buying equipment, you can register earlier by showing that the business is being set up.
7. Summary: Prepare Well and You Are There
The process of opening an Osek Murshe is your gateway to the world of business independence. When your documents are ready in advance, the registration itself can be short -- and that is what lets you move from the idea stage to the execution stage.
With Keep, it is easy, organized, and done in a way that allows you to focus on what really matters: building, managing, and growing your business. We handle opening your file with the authorities, and on the recommended plan also reports and payments to the tax authorities and personal representation before them.
After you receive your approval and start operating as an Osek Murshe, Keep stays by your side with tools for ongoing financial management. Digital invoicing is available on every plan, and the recommended plan adds expense upload in a click and regular reports to the tax authorities, making running your business a much simpler and more efficient experience.
Keep is with you from opening your file with the authorities to the day-to-day management of your business, and the recommended plan adds a personal accountant for professional guidance. With Keep, you are not just opening an Osek Murshe -- you are building your path to success.
Before you start, go through four questions: what your expected annual turnover is compared with the exemption ceiling, whether your profession requires an Osek Murshe, whether all your documents are ready, and whether you will file yourself or through a representative. Once you can answer all four, you are ready to book a VAT office appointment or contact a representative.
Frequently Asked Questions About Opening an Osek Murshe
Can I open an Osek Murshe online?
Yes, through a representative linked to SHAAM, the Tax Authority's computer system, such as an accountant, tax adviser or lawyer, who files the request online. The Tax Authority's own online file-opening service is for an Osek Patur; if you file yourself as an Osek Murshe, you do so at the regional VAT office, by appointment.
Does an Osek Murshe need a separate business bank account?
No, a sole trader does not have to open a separate business account. To open the VAT file you attach the bank's account-management confirmation for the account the business will use, and a joint account with a spouse is accepted if both sign a declaration that it will serve the business. Companies and partnerships need an account in their own name.
Does an Osek Murshe pay income tax advances?
Usually yes. The assessing officer sets the advances as a percentage of turnover, and you report and pay by the 15th of the month after the period. An Osek Murshe who meets the micro-business conditions, including annual turnover up to NIS 122,833 (as of 2026), may be exempted from advances by the assessing officer.
Do self-employed people file reports with National Insurance?
No, as long as they have no employees. A self-employed person pays monthly National Insurance advances based on the income they declared, and once the income tax assessment is set, National Insurance recalculates the year and bills or refunds the difference. If your income changes by at least 10%, you can ask to update the advances, up to once a quarter.
