What is KOSGEB Young Entrepreneur Support?

One of the most curious topics for young entrepreneur candidates is whether they will be able to find support during their entrepreneurial journeys. At this point, KOSGEB Young Entrepreneur Support helps to reduce the question marks in many people's minds and even completely eliminate them. For young candidates who come with new business ideas without any existing capital, KOSGEB's young entrepreneur support provides exactly the support they need. The Young Entrepreneur Support offered for those who want to open a new workplace or improve their existing business is provided with non-repayable grants and interest-free credit advantages.

The Small and Medium Enterprises Development and Support Administration (KOSGEB) has increased the supports, which vary according to market needs, up to 60,000 TL in 2022. The Young Entrepreneur Support program was initiated with the aim of supporting, promoting, and establishing successful businesses, which are essential factors in solving economic development and employment problems, and has provided support to many young entrepreneurs along the way.

What is the Age Limit for KOSGEB Young Entrepreneurs?

The age limit set to benefit from KOSGEB Young Entrepreneur Support is between 18-29 years.

What Are the Conditions for KOSGEB Young Entrepreneur Support?

It is important for entrepreneurs to fulfill certain conditions for KOSGEB's program aimed at supporting young entrepreneurs. The first condition for benefiting from the Young Entrepreneur Support includes an age-related restriction. The first step to benefit from this KOSGEB support is to complete the trainings provided by KOSGEB. The General Entrepreneur Training starts by informing about establishing and running a business, helping entrepreneur candidates become aware of their roles and responsibilities in these processes and gain knowledge and experience. After this training, it is necessary to complete the Advanced Entrepreneur Training.

In this training, young entrepreneur candidates are prepared to be able to create employment, engage in global competition, and develop brand value. After completing these trainings, they can start the application process for credit or grants from KOSGEB by obtaining a certificate. Additionally, it is required that these entrepreneurs do not have any partnership in a commercial activity in the past. This means that if young entrepreneur candidates are opening a company for the first time, they can initiate the application process suitable for the types of support.

Furthermore, those who wish to benefit from the support program must fall under the income tax exemption according to the Income Tax Law. Those who were first insured under 4/B BAĞ-KUR after June 1, 2018, can also apply for this support program. KOSGEB young entrepreneur support is provided for those who open a taxpayer status for the first time within the scope of commercial or freelance activities. Those who establish a sole proprietorship or a general partnership have the right to receive BAĞKUR premium support for one year. Those who started their business before the relevant date, have partnerships in another company, have previously been tax taxpayers and closed their businesses, or limited companies cannot benefit from the support provided.

How to Obtain KOSGEB Young Entrepreneur Support?

After fulfilling the necessary conditions, the first step to accessing KOSGEB support is to write an application letter to the relevant tax office. It is important that the letter reaches the tax office within 10 days following the establishment of the company. The application letter can be prepared through the Interactive Tax Office or with the help of a financial consultant.

Subsequently, the support utilization process unfolds as follows. The entrepreneur submits a letter to the relevant tax office stating that they meet the necessary conditions for the young entrepreneur support and wish to benefit from the support. If the application is accepted, the tax office initiates the income tax exemption for the entrepreneur and provides an approval letter. To start the insurance premium support, the approval letter obtained from the tax office must be submitted in person to the SGK Directorate closest to the entrepreneur's residence along with the tax plate and application letter.

How Much is KOSGEB Young Entrepreneur Support?

A non-repayable support of 2,000 (two thousand) TL is provided for business establishment expenses. Within the scope of Establishment Period Machine, Equipment, Office Equipment, and Software Support, a maximum of 18,000 TL is provided as non-repayable support for machines, equipment, software, and office equipment purchased within 24 (twenty-four) months from the date of establishment of the business. Within the scope of Business Expenses Support, a maximum of 5000 TL per month and a total of 30,000 TL is provided as non-repayable support for rent and net employee wages occurring within 24 months from the date of establishment of the business.

The upper limits of the Establishment Period Machine, Equipment, Software, and Office Equipment Support as well as Business Expenses Support can be increased by up to 50% by the Board Decision, if needed, without exceeding the total upper limits set for these support elements. In this case, the upper limit of the Establishment Period Machine, Equipment, Software, and Office Equipment Support becomes 27,000 TL, the upper limit of Business Expenses Support is 45,000 TL, and the total of the upper limits of both supports cannot exceed 48,000 TL. Under the Fixed Investment Support, 100,000 TL is provided on a repayable basis for machines, equipment, and software purchased within 24 months from the date of establishment of the business, against collateral.

KOSGEB Young Entrepreneur Certificate

The first step to benefit from KOSGEB support is to complete the trainings provided by KOSGEB. The General Entrepreneur Training starts by informing about establishing and running a business, helping entrepreneur candidates become aware of their roles and responsibilities in these processes and gain knowledge and experience. After this training, completing the Advanced Entrepreneur Training is necessary.

In this training, young entrepreneur candidates are prepared to be able to create employment, engage in global competition, and develop brand value. After completing these trainings, they can start the application process for credit or grants from KOSGEB by obtaining a certificate.

Which Sectors Are Supported in KOSGEB Young Entrepreneur Support?

Some sectors supported by KOSGEB are as follows:
● Manufacturing,
● Construction,
● Education,
● Wholesale and retail trade,
● Information and communication,
● Financial and insurance activities,
● Professional, scientific, and technical activities,
● Transportation and storage,
● Accommodation and food service activities,
● Administrative and support service activities,
● Culture, art, entertainment, sport, and recreational services.

Do Young Entrepreneurs Pay VAT?

The Ministry of Treasury and Finance provides tax exemption support for young entrepreneurs for 3 years. If it is determined that the entrepreneur benefiting from the support has earned undeclared income before the establishment date of the company, the person may have to repay the support items they have benefited from, along with legal interest. Additionally, they may face penalties for the identified undeclared income. The income tax exemption is not valid for three calendar years but for three tax periods (financial years). For example, the tax period for an entrepreneur who establishes a company in the 5th month of the year is the period until the end of the year.

The entrepreneur benefiting from the support must generate commercial, agricultural, or professional income and be actively involved in their business. For example, this support cannot be utilized for rental income. If the entrepreneur’s income consists of different items, support can only be obtained for appropriate items. Young entrepreneur support does not exempt the entrepreneur from all taxes. The entrepreneur benefiting from the support continues to pay other taxes excluding income tax.

KOSGEB Young Entrepreneur Training

In the context of KOSGEB Young Entrepreneur Training, the state provides regular support to young people with ideas but no capital, and this support continues in 2023 as well. To assist young people who want to enter the market but are hesitant due to costs such as insurance and/or tax, an advantage is provided to be exempt from SGK (4v) premiums for one year and three tax periods. Participants are first given entrepreneurship training. Young entrepreneurs who receive practical entrepreneurship training and manage to obtain a certificate become entitled to receive grant support for the business projects approved by the institution.

Who is Granted KOSGEB Young Entrepreneur Certificate?

KOSGEB (Young) Entrepreneurship certificate is a certification awarded to individuals participating in entrepreneurship trainings organized by KOSGEB. Those who wish to benefit from the supports provided by KOSGEB must have this certificate. Entrepreneurs who can obtain this certificate gain the right to benefit from the grant supports provided by KOSGEB. Besides, the entrepreneurship certificate serves as proof that the holder has knowledge about entrepreneurship. People who have this certificate have completed a training program that includes preparing a business plan and other information related to entrepreneurship.

Conditions for KOSGEB Young Entrepreneur Support 2023

KOSGEB requires that individuals wishing to benefit from its supports comply with certain conditions. These conditions are:
• First and foremost, individuals who wish to benefit from KOSGEB’s program for youth must be between 18 and 29 years old.
• Additionally, those applying should not have had any partners in any commercial activities in the past and must be establishing a business for the first time.
• Regarding KOSGEB Young Entrepreneur support conditions, they must also fall outside the income exemption according to the Income Tax Law.
• There is also a requirement for first-time insurance under the 4/B BAĞ-KUR scope after June 1, 2018, for KOSGEB Young Entrepreneur applications.
• The entrepreneur must actively work in their business or it must be managed by themselves.
Those who wish to establish a sole proprietorship or partnership have the opportunity to receive BAĞ-KUR premium support for one year. This can be considered one of the advantages provided to young entrepreneurs, as it significantly reduces high tax and insurance costs when establishing a business for the first time. Moreover, economic development and employment are also achieved through grants and interest-free credit opportunities.

What Kind of Supports Does KOSGEB Provide for Young Entrepreneurs?

The supports provided by KOSGEB to young people who have no capital and wish to open a workplace or want to grow their existing business are mentioned. In this context, it can be stated that the first feature is that no repayment is requested for the grants provided by the institution. Additionally, interest-free loan opportunities are also available in the context of support programs. The supports to be provided have been determined by considering market needs. Grants and interest-free loans may vary according to the professional field desired to be pursued by young entrepreneurs. Thanks to the opportunities provided by KOSGEB, young entrepreneurs can work in the areas they wish to establish their own businesses. Foreign nationals who are full taxpayers can also benefit from these supports we mentioned.
Some concrete details regarding the supports provided by KOSGEB to young entrepreneurs are:
• Based on the date of commencement of work, a portion of the income earned during three tax periods, up to 75,000 TL, is exempt from annual income tax.
• As of 01/06/2018, the Bağ-Kur premiums of those insured under 4b for the first time are covered by the Treasury and Finance Ministry for a period of one year.

Where Can Young Entrepreneur Support Be Obtained?

Application for the supports provided by KOSGEB, including young entrepreneur support, can be made through e-Government. Through the e-Government system, access to various information, including information request applications, support programs, and technical consultancy applications, can be obtained. Young entrepreneurs wishing to benefit from grants and all other supports must participate in the training programs first. They can also go directly to the Interactive Tax Office address (https://ivd.gib.gov.tr/) to prepare a letter and apply for young entrepreneur support. If the tax office finds and accepts your letter suitable, it will issue a document stating "You can benefit from Young Entrepreneur Support." You can then go to the nearest SGK Directorate with this document and start benefiting from this support.