SMEs and the change in the definition of SMEs

As is known, it is ready to determine the principles concerning the definition, qualifications and classification of small and medium-sized enterprises and to ensure that these definitions and principles are taken as the basis in the practices of all institutions and organizations. “Regulation on the definition, qualifications and classification of small and medium-sized enterprises” It entered into force for the first time with its publication in the Official Gazette on 18.11.2005, after which amendments were made to the aforementioned regulation. Finally, in the regulation referred to by Presidential Decision No. 5315 published in the Official Journal of March 18, 2022, certain modifications have been made to increase the monetary limits in the definition of small and medium-sized enterprises (SMEs).

In view of these changes,small and medium enterprise (SME); Employing less than two hundred and fifty people per year and any element of its annual net turnover or balance sheet two hundred and fifty million (was one hundred and twenty-five million in the previous arrangement) not exceeding the Turkish lira and the following economic units or enterprises classified as micro-enterprises, small enterprises and medium-sized enterprises.

Classification of small and medium enterprises As of March 18, 2022, it is as follows:

  1. a) Micro enterprise: Less than ten people annual employee employs and its annual net turnover or financial balance sheet five million (was three million in the previous arrangement) not exceeding the Turkish lira companies.
  2. b) Small business: less than fifty annual employee employs and its annual net turnover or financial balance sheet fifty million (was twenty-five million in the previous arrangement) not exceeding the Turkish lira companies.
  3. c) Medium-sized company: Employees less than two hundred and fifty people per year employs and its annual net turnover or financial balance sheet two hundred and fifty million (was one hundred and twenty-five million in the previous arrangement) not exceeding the Turkish lira companies.

companies financial situation and to determine the number of employees based on the latest data calculated annually. In newly created companies whose accounts for the first year have not yet been approved, and companies which do not keep accounts on the basis of the balance sheet, only, number of employees are taken into account. If there are no employees according to the calculations of the previous year, the number of employees of the current year is taken into account.

In the implementation of this regulation;

  1. a) Employees, employers’ representatives and employers and company managers working in the company concerned,
  2. b) Partners who regularly perform work in the company and receive a salary for it

are considered employees.. Those who receive in-company vocational training under the apprenticeship and vocational training contract apprentices and internship students not included in the number of employees.

The provisions of this Regulation serve as a basis for the implementation of legislation relating to small and medium-sized enterprises. However; Organizations providing support to SMEs may determine their own sectoral and size priorities, provided they do not exceed the limits specified in this Regulation. For claims other than state aid, only the number of employees can be taken into account.

According to the aforementioned regulationson the closing date of their accounts.taken into account when determining business classes and qualifying SMEs. one of the criteria, consecutive in both accounting periods companies that lose or exceed change class or lose their SME qualification. However, Different determinations can be made by organizations that provide support in this regard.

The Ministry of Industry and Technology was created in order to increase the share and efficiency of small and medium-sized enterprises in meeting the economic and social needs of the country, to increase their competitiveness and level, and to achieve integration in the industry according to economic development. “Administration of Development and Support for Small and Medium Enterprises”, brief, “KOSGEB” operates through the aforementioned organization. various support programs and within this framework, reimbursable and/or non-reimbursable assistance is provided.

Companies, professional organizations and operating bodies that will benefit from the support programs KOSGEB’ databaseTo be included in the database of KOSGEB, an application must be made according to the method specified in the Internet address www.kosgeb.gov.tr​​of KOSGEB.

On the other hand, in the provisions of the Turkish Commercial Code regarding mergers, divisions or conversions, it is possible to benefit from certain conveniences for SMEs in terms of transactions and mandatory declarations.

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