אוסמוז
Meeting · Confidential
The accountantStructure, tax, financing
Several of these choices cannot be undone afterwards: the legal form, the way the 600 000 ₪ enter the company, and the order in which the equipment is bought.
§The project in ten lines
We are setting up a cleaning company in Israel, specialised in pressure washing, with the drone as support for façades. Two brothers as partners: Jonathan, engineer and former certified RGE auditor, ten years in Israel; David, twelve years of pressure washing in France — drain unblocking, pipe cleaning, network maintenance.
The drone is not the trade, it is the means of access. The same van and the same equipment serve two activities: façade washing carried by the drone, and ground-level pressure washing — car parks, lobbies, terraces, drainage networks. Pressure washing invoices from month three; the drone waits for a special operating authorisation from the Civil Aviation Authority (רת״א), expected in month seven.
What we need from you, precisely. Not a rubber stamp: a decision on three points that commit money. The legal form and how the founders’ equity enters the company, the tax treatment of a vehicle above 3.5 tonnes — it is worth about 82 000 ₪ over five years — and the share of the investment we should finance rather than buy outright. Your answer on that last point sets what we will ask the bank for: our credit request is built, not frozen.
The figures in the dossier
| Item | Amount | Timing |
|---|---|---|
| Founders’ equity contribution | 600 000 ₪ | Month 1 |
| Total equipment investment | 729 000 ₪ | Months 1 to 4 |
| — of which paid in cash | 360 000 ₪ | Months 1 to 4 |
| — of which financed by pledged balloon loan | 369 000 ₪ | Month 2 |
| Start-up costs (lawyer, regulatory consultant, website) | 91 000 ₪ | Months 1 to 3 |
| Launch marketing | 72 000 ₪ | Months 1 to 6 |
| Forecast revenue, year 1 | 782 931 ₪ | — |
| Forecast revenue, year 2 | 1 059 534 ₪ | one crew |
| Fixed costs at cruising speed | 69 707 ₪/month | from month 8 |
| Headcount, year 1 | 4 employees | phased |
The founders take no salary in the first year and are paid out of profit. מע״מ (VAT) at 18% and corporate income tax at 23% are built into the forecast, together with the input VAT credit on the imported equipment.
AStructure and formation
These questions arise before incorporation. Several cannot be undone.
A1
Which legal form do you recommend for this activity: חברה בע״מ (limited company), or another structure? On what criteria, and at what level of activity does the choice tip?
Services to building committees and to companies, imported equipment, four employees in year 1, forecast revenue of 782 931 ₪ in the first year.
Answer:
A2
The partners are putting in 600 000 ₪. Is it better to bring this in as share capital or as a shareholder loan (הלוואת בעלים)? What are the consequences for tax, for the ability to take the money back out, and for how the bank will read it?
The most structural question in the whole set-up, and it is decided at the moment of incorporation.
Answer:
A3
The partners’ tax residence in Israel is not yet settled. What does that change in practice: taxation of dividends, ניכוי מס במקור (withholding at source), application of the France–Israel tax treaty, filing obligations on both sides?
Answer:
A4
Two brothers with equal shares: do you recommend a split other than 50-50, and should separate share classes be created at incorporation to prepare for a third party coming in later?
The shareholders’ agreement itself is handled with the lawyer; here we are looking for the tax and accounting effect of the choice.
Answer:
A5
One company for both activities — ground-level pressure washing and drone façade washing — or two separate entities? The drone activity carries its own regulatory and insurance risk.
The point: ring-fence the risk without duplicating overheads.
Answer:
BImport, VAT and the input VAT credit
We will be in an input VAT credit position for several months before the first drone revenue.
B1
Must the company exist and be registered for מע״מ (VAT) before the drones are imported, or can the order be placed earlier? What is the risk of ordering equipment in the name of a company not yet formed?
The flying equipment represents about 270 000 ₪ and the import lead time drives the whole regulatory timeline.
Answer:
B2
Is the 18% VAT paid on importing the drones fully recoverable, and within what time? How does the refund work in practice, and should we expect an audit?
A slow refund is a cash problem, not a profit problem. We want to know which of the two we are managing.
Answer:
B3
Our forecast assumes 44 085 ₪ of VAT recovered on the van in month three. Is that realistic, or should we allow two to three months more? And which filing regime should we choose — monthly or bi-monthly?
Quantified in § 8.4 bis of the dossier: two months late, this refund brings the month-four cash position down to 7 247 ₪, which then becomes the low point of the year, ahead of the month-nine trough at 23 932 ₪.
Answer:
B4
We invoice two types of client: ועד בית (building committees), which cannot recover VAT, and property management companies, which can. Does that affect the way we invoice, the way we present prices, or our documentation obligations?
Answer:
CThe vehicle and the 3 500 kg line
The heaviest trade-off in the equipment plan. We want your confirmation in writing before we order.
C1
Do you confirm that the 18% VAT is not recoverable on a commercial vehicle whose gross vehicle weight does not exceed 3 500 kg, even when used 100% for the business — and that it is fully recoverable above that line?
תקנה 14(א) לתקנות מס ערך מוסף (ניכוי תשומות), התשל״ו-1976 · amendment of 23.03.2005. We are taking a van with a gross weight of 3 990 kg. Difference: 44 085 ₪ recovered instead of zero.
Answer:
C2
Do you confirm that, below 3 500 kg, the running costs of the vehicle are only 45% deductible and the VAT on fuel and maintenance only two thirds, against 100% in both cases above that line?
תקנה 18 · pro-rata rule. Difference in our model: 7 281 ₪ per year per vehicle.
Answer:
C3
שווי שימוש (benefit-in-kind) does not apply above 3 500 kg, nor to vehicles that stay on company premises after the working day. What proof does the tax authority require for that second exemption: a signed internal rule, keys left at the depot, telematics logs? Is this checked regularly?
2.48% per month of the adjusted list price — income tax base for every employee concerned.
Answer:
C4
The second vehicle is a used van of 35 000 to 55 000 ₪, bought outright, below 3 500 kg. Given C1 and C2, is it better to buy it in the company’s name, to lease it, or to use a mileage allowance?
Answer:
C5
Is the מס קנייה (purchase tax) scale on commercial vehicles — 83% up to 3.5 t, 72% from 3.5 to 4.5 t, nil above — correct and still in force in 2026? Does the surcharge on list prices above 300 000 ₪ apply to a work vehicle?
The official customs tariff (heading 87.04) is not available online — we only have secondary sources.
Answer:
DDepreciation and investment timing
D1
Which rates and useful lives apply to our three items: a professional drone, a commercial vehicle above 3.5 tonnes, and the fixed fit-out of the vehicle? Does the fit-out depreciate with the vehicle or separately?
Two aircraft at 270 000 ₪, van at 289 000 ₪, van racking and vehicle wrap at 25 000 ₪.
Answer:
D2
On 729 000 ₪ of equipment investment spread from month 1 to month 4, is there an order of commitment that improves the tax cash position — for example placing certain purchases in one financial year rather than another?
Answer:
D3
Are the 91 000 ₪ of start-up costs — legal fees, regulatory consultant for the authorisation file, website and CRM — expenses of the year, or costs to be capitalised and depreciated?
The regulatory consultant alone accounts for 60 000 ₪ and works before any drone revenue.
Answer:
EFinancing: what we should borrow, and in what form
This is the block that settles our request to the bank. We have not frozen it before seeing you.
E1
Our plan is 369 000 ₪ financed by a pledged balloon loan — 199 000 on the van, 170 000 on the two aircraft — and 360 000 ₪ paid in cash out of the equity contribution. Is that the right split? Should we finance more to protect the cash position, or less to reduce finance costs?
Current monthly instalment in the plan: 6 866 ₪ over 48 months. Cash trough: 23 932 ₪ in month nine.
Answer:
E2
Balloon loan, operating lease or outright purchase: which is the most favourable for tax in our exact case, for the van on one side and for the drones on the other? Drones lose value fast and are replaced every four years.
A lease stays off the balance sheet but costs more; a balloon loan keeps the depreciation but exposes us to the final payment.
Answer:
E3
The balloon payment is normally indexed to the מדד (consumer price index). How is it treated in the accounts, and should a finance charge for indexation be provided for from the first year?
A balloon of 86 700 ₪ passes 94 000 ₪ in four years at 3% inflation, while every instalment is paid on time.
Answer:
E4
Are loan interest and finance charges fully deductible for corporate income tax in our configuration? Is there a limit tied to the debt-to-equity ratio?
Answer:
E5
Does an undrawn overdraft facility of 100 000 ₪ appear on the balance sheet, and how does a third party read it? Is it better to ask for it when the account is opened, or to wait for the first closed financial year?
Answer:
E6
If the bank requires a personal guarantee from the partners on the 369 000 ₪, what are the tax and personal-asset consequences, and up to what amount is it reasonable to commit?
The shareholders’ agreement and the drafting of the guarantee are the lawyer’s business; here we want your financial reading.
Answer:
FPayroll, directors and employee status
F1
The partners take no salary in the first year and are paid out of profit. Does that hold under Israeli law? Must an active partner-director be on the payroll, and does taking no pay create a reassessment risk or a social security affiliation problem?
Answer:
F2
What real effect does an employee’s status as olé hadash (new immigrant) or toshav hozer (returning resident) have on the employer cost and on net pay? Any special filing obligations on hiring?
Our model uses an employer cost coefficient of 1.20 and a net pay difference of about 700 ₪ per month — to be confirmed.
Answer:
F3
Our employer on-costs coefficient is set at 1.20. Once pension cover, הבראה (recuperation pay), holiday and the פיצויי פיטורים (severance pay) provision are added up, is that realistic, or should we use 1.28 to 1.30? Give us the high scenario in figures: on a chargeable base of 42 450 ₪, it adds 3 400 to 4 250 ₪ of fixed costs per month and moves break-even from 79 212 ₪ to 83 100 – 83 900 ₪.
This is the question that moves break-even the most in the whole dossier.
Answer:
F3b
Do you confirm our employer cost grid: drone pilot 13 000 ₪ gross for 15 600 ₪ loaded, crew leader 11 000 for 13 200, technical sales 12 000 for 14 400, sales representative at the legal floor of 6 443.85 ₪ plus commission, administrator 10 000 for 12 000?
Minimum wage of 6 443.85 ₪ gross since 1 April 2026. Payroll at cruising speed: about 63 000 ₪ loaded.
Answer:
F4
A sales representative paid at the legal floor plus commission: how should the commission be treated for the legal minimum, for paid holiday and for the severance pay provision?
Answer:
GFiling obligations and bookkeeping
G1
What are our real obligations at start-up: VAT filing frequency, corporate income tax instalments, payroll filings, ניהול ספרים (bookkeeping) requirements and the type of accounts imposed? What must be in place from the first month?
Answer:
G2
We collect deposits of 40% on order, the balance at sixty days. What triggers VAT on a deposit, and how should it be booked cleanly?
Our cash plan rests entirely on that lag.
Answer:
G3
Property management companies and businesses will apply withholding at source — ניכוי מס במקור on our invoices. What default rate applies to a new company with no אישור (exemption certificate), how and when is the exemption or the reduced rate obtained, and what cash lag should we provide for in year 1?
Our most attractive clients are precisely the ones that withhold at source. Withholding at the full rate in the first months changes the cash plan, not the profit.
Answer:
G4
Which compliant invoicing tool do you recommend, and is it compatible with a CRM we are building ourselves? Is electronic invoicing already mandatory for a company of our size in 2026?
Answer:
HGrants, schemes and support
H1
Are there schemes that apply to our activity — חוק עידוד השקעות הון (Capital Investment Encouragement Law), support from the רשות החדשנות (Innovation Authority), employment or training grants, regional schemes? And above all: do you advise us to go after them, or does the cost of the application exceed what they return at our scale?
We would rather have a straight answer, including a negative one, than a file prepared for nothing.
Answer:
H2
We handle the administration ourselves at start-up. From what point does an accountant become necessary rather than useful, and what does your support cost — monthly retainer, one-off assignments, annual closing?
Asked plainly: we want to know what we keep in-house and what should come to you.
Answer:
H3
In this dossier, do you see an assumption you consider imprudent, or a line item that is clearly under-estimated? This is the most useful question of the meeting.
Answer:
§What to leave the meeting with
A verbal answer cannot go into a bank file.
- Her written recommendation on the legal form, and on share capital versus shareholder loan for the 600 000 ₪.
- Her written confirmation of the tax regime above 3 500 kg — this is the document that secures the van order.
- Her costed view on the equity / financing split, to be carried as it stands to the bank meeting.
- The real refund time for the input VAT credit on the drone import.
- The list of filing obligations to put in place from the first month.
- Her quote for ongoing support, and what she believes we can handle ourselves.
The order of the meetings matters. The lawyer first, to know whether the trade can be carried on and on what conditions. The accountant next, to settle the structure and the equity-versus-borrowing split. The bank last, with a request already decided and two written opinions in hand.