2023 Young Entrepreneur Support Guide 

2023 Young Entrepreneur Support Guide 

Investment, support and grant issues have a very important place for young people who want to become entrepreneur, start their own businesses and enter professional life. Although issues such as income tax, Bağ-Kur (Social Security Organization for Artisans and Self-Employed) premium and withholding tax brought by starting a business seem to be difficult for new entrepreneurs in the first place, there are also advantages of alleviating the financial burden by making use of the investments and supports that form the basis of starting a business. Young Entrepreneur Support, through which state support can be obtained, is an opportunity that entrepreneurs can benefit from at this point. 

In this article, you can find answers to the questions of Young Entrepreneur Support 2023 terms and conditions, Young Entrepreneur Support applications, what are entrepreneurial supports, what are the advantages, and how young entrepreneurs should establish a company.

What is Young Entrepreneur Support?

One of the supports that concerns young people who want to start a business on their own and start a new business is the Young Entrepreneur Support. Young Entrepreneur Support is financial support for young entrepreneurs who are new to business life and aim to start their own business, specified by the Omnibus Law on 18.05.2018. Entrepreneurs who benefit from this support can start their own businesses exempt from Bağ-Kur premium and tax payments within the scope of 4B. 

Accordingly, the Young Entrepreneur Support offered by the state is a type of support that young people who are in the process of starting their own business and haven’t turned 29 years old can benefit from. Entrepreneurs who receive this support are provided with an annual tax exemption for up to a certain amount of income and Bağ-Kur premium support for 3 years. 

Who Can Benefit from Young Entrepreneur Support?

Entrepreneurs must fulfil certain terms and conditions in order to benefit from the Young Entrepreneur Support. Young entrepreneurs can find the opportunity to receive tax exemption and Bağ-Kur support if they meet these conditions. The basic conditions for applying for Young Entrepreneur Support are as follows;

  • To have completed 18 years old and not exceeding 29 years old.
  • To have established a sole proprietorship and ordinary partnership. Joint stock and limited companies can’t benefit from the support. 
  • Benefiting from Bağ-Kur for the first time as of 1 June 2018.
  • Being a taxpayer for the first time.
  • Establishing your own business and being in charge of the administration and management of your business. 
  • Declaration that you started work within the legal period given.
  • Not being a partner in an existing business or professional activity.

How to apply for Young Entrepreneur Support?

Young entrepreneurs can complete their applications for the Interactive Tax Office Young Entrepreneur Application in a short time. If you meet the conditions required for support, you can apply by preparing a petition through the Interactive Tax Office. If you wish, you can also get financial advisor support when writing a petition. You can complete the application process by submitting the Earnings Exception for Young Entrepreneurs document you receive from the tax office to the Bağ-Kur Insured Registration Service of the nearest SSI Directorate. 

What is the scope of Young Entrepreneur Support?

Young Entrepreneur Support for young entrepreneurs, which is a good opportunity for young people between the ages of 18-29, covers 3 taxation periods and 1 year exemption from SSI (4B) premiums. This support, which enables young people to start business life, entered into force after being published in the Official Gazette dated 18.05.2018 and numbered 30425. Within the scope of 2023 Young Entrepreneur Support, entrepreneurs will be exempt from paying tax on income up to 150,000 TL per year for 3 years. In addition, the premium to be paid for 1 year (according to the lowest Bağ-Kur premium, a total of 41,433.12 TL – 3,452.76 TL per month) will be covered by the state treasury.

Who can benefit from the insurance premium support?

  • Benefiting from the earnings exemption within the scope of Article 20 of the Income Tax Law No. 193.
  • Being insured for the first time. 
  • Being over the age of 18 and not exceeding the age of 29 as of the starting date of liability. 
  • To be working in the established company by himself/herself, to be referred by himself/herself.

*Joint stock and limited company partners can’t benefit from this support. In ordinary partnerships, Bağ-Kur support is given to one partner.

Is KOSGEB support also received while receiving Young Entrepreneur Support?

Young entrepreneurs can benefit from KOSGEB grants and supports by establishing their companies. To benefit from KOSGEB support, some trainings are given by the institution. However, you must not have established a company before completing these trainings. If you receive a KOSGEB certificate after establishing a company, you can’t benefit from KOSGEB grants and supports even if you benefit from young entrepreneur support. You can find more detailed information for KOSGEB support on the website.

Can limited company owners benefit from Young Entrepreneur Support?

Only income taxpayers can benefit from the Young Entrepreneur Support. Due to the limited company structure, those who establish a limited company can’t benefit from this support. You can’t benefit from these supports if you started working before 01/06/2018 or if you have a partnership in another company with Joint Stock and Limited Company partners.

Is Young Entrepreneur Support received for the inherited business?

To benefit from the support in cases of transfer, the person from whom the professional activity or business is taken over must not be a spouse or blood or in-law relatives up to the third degree. If the spouse and children want to receive support for the professional activity or business taken over due to death, it isn’t considered whether the deceased person benefited from the incentive or not, and if the spouse or children who take over meet the conditions for the exemption, they can benefit from the incentive for three taxation periods. 

How to establish a Sole Proprietorship?

In general, small and medium-sized companies established by a single person, which you can easily realise individually, are called sole proprietorships. The sole proprietorship is the easiest type of company to establish and terminate. It is preferred by more people than other types of companies due to the low costs of tax expenses, and accounting book money payments.

What are the documents required for Sole Proprietorship?

What are the necessary documents when establishing a sole proprietorship is one of the most curious details. When establishing the company, you must prepare the following documents during the application.

  • Photocopy of identity card
  • Passport photo
  • Residence document
  • Signature declaration
  • Photocopy of title deed / lease contract

An application is made to the tax office with these documents. Approval of the application takes place within a short period of time.

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