Osek Sachir – Invoice Without Business Registration
Osek Sachir – Invoice Without Business Registration
This model, which previously allowed freelancers to issue invoices and receive payslips without registering as a business, has recently been shut down.
Legal Alternative to Osek Sachir for Freelancer Invoicing
Why Was Osek Sachir Shut Down?
The “Osek Sachir” model was marketed as a hybrid solution – not quite an employee, not quite self-employed. However, over time, it became clear to the Israeli Tax Authority and regulators that this model had serious legal and financial issues:
✅ Many providers did not hold the required labor contractor license (רישיון כ”א), which is mandatory for intermediating between freelancers and employers.
📜 Payslips were issued without real employer-employee relations, creating legal risks for both parties.
✅ Some providers were investigated for tax fraud, false reporting, and improper use of payslip systems.
✅ In many cases, clients couldn’t deduct expenses or VAT – because the invoices were not legally valid.
Eventually, the model was deemed non-compliant with Israeli law, and websites such as oseksachir.co.il were shut down or legally blocked.
✅ The Legal and Simple Alternative: NETO
NETO is a licensed Israeli payroll and staffing company (license #1565), officially allowed to employ workers on behalf of businesses and issue invoices, payslips, and tax reports.
With NETO you can:
- Legally issue invoices without opening a business file
- Receive a full salary slip and social benefits
- Have NETO handle all tax, insurance, and pension payments
- Be paid via bank transfer, with full transparency
NETO is regularly audited and fully approved by all Israeli authorities, including Mas Hachnasa, Bituach Leumi, and the Ministry of Labor.
How Does It Work?
- Register on NETO’s system – it’s free.
- No subscription fees, no commitment, no penalties.
- Create a Work Order with client details, project description, and payment amount.
- The system shows you a salary simulation (how much you’ll receive net).
- Once your client approves, NETO issues an invoice to them and a salary slip to you.
- The money is transferred to your bank account, with all taxes handled.
💰 NETO charges only 5% of the invoice amount.
Is It Legal?
Yes – 100%.
NETO operates under a legal employer license and meets all requirements under Israeli labor, tax, and insurance laws.
We deposit guarantees to protect your salary – even if the client fails to pay.
You are treated as a full employee with pension, sick leave, and insurance.
You get a payslip, and your client gets a legal invoice.
Simple. Safe. Legal.
Who Is It For?
- 🎯 Freelancers working without a business file
- 🌍 Israelis working for international clients
- 👨💻 Tech professionals, marketers, consultants, designers
- 🧾 Anyone needing to issue a one-time or recurring invoice without opening a file with the Tax Authority
Comparison: Self-Employed & Osek Sachir VS NETO
Benefits of NETO Over the Osek Sachir Model
| Feature | Self-Employed | NETO |
|---|---|---|
| Business registration | Required (tax files) | Not required |
| Bookkeeping & accountant | Required | Not required |
| Payslip | No | Yes |
| Social benefits | No | Yes (sick days, pension, etc.) |
| Tax coordination | Manual | Handled by NETO |
| Legal protection | Limited | Full employer protection |
| Entry barrier | High | Zero – 5 min registration |
🎥 Watch the 1-Minute Tutorial
How to issue an invoice without opening a business
🌎 U.S. Citizens or New Immigrants (Olim Hadashim)? Save on Social Security Tax
If you’re a U.S. citizen, a green card holder, or a new immigrant to Israel, working as a self-employed freelancer may expose you to double taxation.
When you’re self-employed and working with U.S.-based clients, you are required to pay:
- 💸 15.3% self-employment tax (Social Security + Medicare) to the IRS
- 🧾 Plus, income tax to Israeli authorities (Mas Hachnasa)
That’s on top of accounting, VAT, and Bituach Leumi obligations in Israel.
But there’s good news:
When you work through NETO, you’re classified as a formal employee – not self-employed. This means:
- You do not owe U.S. self-employment (FICA) tax ✅
- NETO reports your income as wages, not freelance income
- You still pay Israeli tax as required, but avoid unnecessary U.S. taxation
✅ This can save you up to 15% of your income
✅ And all for just a 5% service fee to NETO
Example:
Daniel, a dual U.S.–Israeli citizen working remotely for a U.S. startup, used to pay both Bituach Leumi and Social Security tax.
After switching to NETO, his work is reported as employment in Israel, and his CPA confirmed:
✅ No more 15.3% U.S. Social Security
✅ All taxes properly handled via payslips
👨🏻✈️ Client gets a legal invoice
✅ Daniel gets peace of mind
Try Now – It’s Free
✅ Legal, Safe, Smart
Register & Get Your Payslip
Why NETO?
Fast and Easy: Create invoices in minutes, no business license required.
Secure and Legal: We are a licensed HR contractor (#1565), ensuring compliance and protecting your money.
Transparent Fees: Our low 5% fee ensures you keep most of your earnings.
How it Works:
Register as an Employee: Sign up for a free NETO account and become an employee.
Create Work Orders: Easily add work details, client information, and pricing.
Receive Net Salary Simulation: See your estimated net pay before starting work.
Complete Work and Report: Once the client approves, complete the work and submit a report.
Receive Payslip and Payment: Get paid directly to your bank account with a clear payslip.
Join the NETO Community:
No Registration Fees: Enjoy free registration and no hidden charges.
Dedicated Support: Our team is always available to assist you.
Peace of Mind: Our strict regulations and guarantees protect your earnings.
Ready to Simplify Your Invoicing?
Register Now and Try Our Free Simulation:👇
For Support: Call📞 08976187
Contact
📞 +972-8-976-1874
✉ [email protected]
🌍 NETO Website
Edited by Yizhar Cohen
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