Before starting a new business, choosing the legal form of its organization is one of the main problems for a first-time entrepreneur. For larger enterprises in Israel, there are two main forms of doing business – the Osek Murshe (or private entrepreneur) and the Hevra Ba’am (limited liability company). Below you will find out what particular features there are in these forms of operation and which option is best to choose in which situation.
The main distinguishing feature of this form of activity is the obligation to pay the Value Added Tax in accordance with the turnover of the company. In this case, the company has the right to refund the VAT spent on goods and services purchased for business operations.
In this case, the taxation system is much more complex and variable and depends on the individual characteristics of the enterprise. The entrepreneur at the same time owns the company, namely, the controlling stake in its shares.
If the potential income from the activity of the enterprise is planned to be sufficiently large, it is worthwhile to think about opening a hevra ba’am for tax optimization and more efficient accounting. It is also obligatory to register this kind of activity if several people act as the founders of the company. Another case of the desirability of registering the hevra ba’am is the abundance of credit obligations and financial injections from the outside necessary to establish a business. In this case, it is better to be safe and avoid personal financial responsibility.
If you plan to have an enterprise with an average annual turnover, and you will be its sole founder – do not hesitate to register the osek murshe. Also, to think about such a way of doing business will do good to first-time entrepreneurs with a limited startup capital. In this case, you do not have to spend your modest budget to pay for the services of lawyers, and you can immediately put it into business.
In any case, choosing the right type of doing business and registering it is quite a time-consuming task. To avoid mistakes and quickly start your company, it is better to turn for help to professionals. The company “Shmuel Brodetsky Rohe Heshbon” will help you to choose the right form of doing business in accordance with the specifics of your business and quickly register a company with the state institutions.
Заказать бесплатную консультацию
לפגישת ייעוץ חינם
Задать вопрос специалисту
Order a free consultation