Key Takeaways
- Keep lets you start an organized business in one place: registering as self-employed, invoicing and payment processing, plus reports and payments to the tax authorities on the recommended plan.
- Opening a business through Keep suits freelancers, consultants, designers, e-commerce sellers and small business owners who want an organized start.
- To speed things up, prepare your ID, a bank account confirmation from your bank, contact details, a lease if you rent premises for the business, proof of expected activity and a short description of your business activity in advance.
- Once your file is open, you can start issuing invoices, receiving payments and tracking income and expenses in an organized way.
- Managing digitally from day one helps reduce errors, save time and stay on the right side of VAT, Income Tax and National Insurance.
Why Open a Business with Keep?
Want to turn an idea into an active business without the hassle? Keep is digital bookkeeping with online support, which makes it a good fit for freelancers such as designers, consultants, and e-commerce sellers.
The platform offers a user-friendly interface and a mobile app, so you can manage your business from anywhere. Key advantages include:
- Process automation - Automatic, unlimited digital receipts and invoices on every plan
- All business data in one place - Income, expenses and profit for a date range you choose, on every plan. On the recommended plan you also upload business expenses in a click, as a photo or a file
- Professional support - On the recommended plan, a personal accountant for professional guidance and representation before the tax authorities, with no need for in-person meetings
- Easy access - To financial data via computer or phone
With Keep, you can go through every step of opening a business in one place - from registering as self-employed, through issuing digital invoices, to filing reports, which are included in the recommended plan.
The main advantage of opening a business through a digital system is not only the time saved, but order from the very first moment. Instead of starting with several separate systems, manual files and unclear processes, Keep lets you bring the business's key actions into one place: registration, invoices and payments, and on the recommended plan also expense upload and reports to the authorities.
Step 1: Register as Self-Employed with the Tax Authorities
To start as a freelancer in Israel, you need to open a file with VAT (Ma'am), Income Tax, and National Insurance (Bituach Leumi). Keep makes the process simpler through a digital interface.
How Does It Work?
- Sign up for the platform - Through the Keep website, filling in basic details like your name, ID number, and contact information.
- Registration forms - Form 821 to open a VAT file and Form 5329 to open an Income Tax file.
- Online submission - Keep submits the forms to the authorities electronically, for a one-time file-opening fee of 99 NIS + VAT. The Tax Authority publishes no fixed processing time: the files are opened once the request has been reviewed and approved, and how long the review takes also depends on your documents being complete.
- Receive confirmation - Get your file opening confirmation from VAT and Income Tax, and you can start operating as a freelancer.
When opening your file, it is important to understand which dealer type fits your activity: Osek Patur or Osek Murshe. The choice affects how you deal with VAT, the type of documents you issue to customers, how often you report, and how you manage income and expenses later on. So it is worth defining your field of activity, your type of customers and your expected income in advance.
Step 2: Issue Your First Invoices
After opening your file, you can start issuing documents to clients: an Osek Patur issues receipts and transaction invoices, and an Osek Murshe can also issue tax invoices. Keep's system lets you create and send these documents without limit, on every plan.
The Process
- Log in to your Keep account and select "Issue Invoice."
- Enter client details, service description, and payment amount.
- Send the invoice via email or download it as a PDF.
- Track payment status through the system, including which clients have not paid yet.
Issuing invoices through Keep happens in one system instead of manual files, and each document is saved as a digitally signed PDF.
Issuing your first invoice is not just a technical step with a customer, but the start of organized financial management. When all invoices are kept in one system, it is easier to track income, spot customers who have not paid yet, keep proper records and reach your reporting with complete data rather than scattered documents.
Step 3: Set Up Payment Processing
To receive payments from clients, you will need a credit card processing system. Keep lets you charge clients by credit card and Bit on every plan, and includes an API for card payments on your website. A plugin for Wix and Shopify is included in the recommended plan, and a WooCommerce plugin is included in every plan.
How Does It Work?
- Activate payment processing through Keep, based on your business needs.
- Enter your bank account details and complete the verification process.
- Send payment links to clients or embed a payment button on your website.
Setting up payment processing at the start can improve how your business collects money. Instead of issuing an invoice and waiting for a bank transfer, you can let customers pay more conveniently and follow the payment status. This matters especially for businesses that work online, sell through a website or serve several customers at once.
Step 4: Initial Reports to Authorities
Once your file is open, you will need to report your income to the authorities on dates set by your dealer type, not by the date of your first invoice. Reports and payments to the tax authorities are included in Keep's recommended plan.
- Advance payments - Self-employed people – Osek Patur and Osek Murshe alike – may be required to pay income tax advances, at a rate set by the assessing officer. A micro-business owner (annual turnover up to 122,833 NIS, as of 2026) is usually exempt from advances.
- Initial VAT report - Licensed dealers report VAT every two months if their annual turnover is up to 1,775,000 NIS (as of 2026), and monthly above that. An Osek Patur files no periodic VAT reports, only an annual turnover declaration by 31 January. VAT reports are included in the recommended plan (for an Osek Patur, the annual declaration).
- Expense tracking - On the recommended plan, you upload business expenses in a click, as a photo or a file, to document deductible expenses for tax purposes. A photo does not replace the original receipt: the original is kept unless all the conditions the Tax Authority sets for scanned documents are met.
From the very first month, it is important to separate income, expenses and payments to the authorities. Organized management from the start helps you understand how much money really stays in the business, reduces reporting errors and avoids gathering documents at the last minute before filing with VAT or Income Tax.
Practical Tips for Setting Up Your Business
To ensure a smooth start, here are some recommendations:
- Choose the right business type - Osek Patur (exempt dealer) is suitable for annual turnover of up to 122,833 NIS (as of 2026). Above that ceiling, registering as an Osek Murshe (licensed dealer) is mandatory. Some fields, such as law, accounting, medicine, engineering and real estate brokerage, must register as an Osek Murshe whatever their turnover.
- Prepare documents in advance - ID card, a bank account confirmation from your bank, a lease if you rent premises for the business, and proof of expected activity will speed up registration.
- Use the Keep app - The mobile app is on every plan, and on the recommended plan you can also upload expenses as a photo.
- Consult an accountant - Keep's recommended plan includes a personal accountant for professional guidance. On the basic plan, an initial consultation with an accountant can prevent mistakes.
- Set up payment processing early - Installing a payment system before your first invoice prevents delays.
Before you start working with customers, decide how the business will run day to day: how you will receive payments, keep expenses, follow open invoices and know what needs to be reported. Small decisions at the setup stage can save a lot of time, errors and disorder later.
Summary: An Active, Organized Business from the Start
Opening a business does not have to be complicated. Keep simplifies every step, from registering as self-employed with VAT and Income Tax, through issuing your first invoices, to submitting reports to the authorities on the recommended plan.
Whether you are a graphic designer, an e-commerce seller, or a shop owner, Keep offers digital tools that save time and bring peace of mind. The system combines automatic document issuing with a personal accountant's guidance on the recommended plan, so you can focus on growing your business without worrying about bureaucracy.
A new business that starts with an organized process on day one can run more calmly later. When invoices, payments, expenses and reports are in one place, it is easier to control the business, understand where it stands and avoid errors caused by disorder or manual work.
Frequently Asked Questions About Opening a Business as Self-Employed
How long does it take to open a VAT and Income Tax file?
The Tax Authority publishes no fixed processing time, and that is also true when you open the file through Keep (for a one-time fee of 99 NIS + VAT). An Osek Patur can apply online on the Tax Authority website, and the VAT and Income Tax files open together once the request has been reviewed and approved. An Osek Murshe opens a file through a representative, such as an accountant or tax adviser, or at the regional VAT office by appointment. A request that includes every required document helps you avoid delays.
What do I need to prepare to open a file as self-employed?
To open a VAT file you submit Form 821 with your ID, a bank account confirmation from your bank, a lease if you rent premises for the business, and proof of expected activity, such as an agreement with a client or an invoice for equipment you bought. In some fields the Tax Authority may ask for more documents. The Income Tax file is opened with Form 5329, but an Osek Patur who applies online on the Tax Authority website opens both files in one request.
Does an Osek Patur file VAT reports?
An Osek Patur files no periodic VAT reports, only one report a year: a declaration of the previous year's turnover, by 31 January. It also files an annual income tax report. An Osek Murshe, by contrast, files a VAT report every month or two, even for a period with no activity. Keep's recommended plan includes VAT reports, which for an Osek Patur means the annual declaration.
Do self-employed people file periodic reports with National Insurance?
A self-employed person with no employees files no monthly or bi-monthly reports with National Insurance. They notify National Insurance (Bituach Leumi) when they start working and pay monthly advances based on the income they declared. Once the income tax assessment is set, National Insurance recalculates the year and bills or refunds the difference. Someone with no income tax assessment may be asked to file an annual income declaration. In the Tax Authority's online Osek Patur application you can tick the option to open a National Insurance file too; if you do not, you register separately with Form 6101.
Can an Osek Patur issue a tax invoice?
No. Under the VAT Law, only an Osek Murshe may issue a tax invoice. An Osek Patur issues a receipt for every payment it receives and can also issue a transaction invoice, which is a payment request, not a tax invoice. In Keep you can issue receipts and other income documents without limit, on every plan.
