New Upper Limit Set For Smes

AMENDMENTS HAVE BEEN MADE TO THE SMALL AND MEDIUM ENTERPRISE (SME) DEFINITION. ACCORDING TO THE FORMER DEFINITION, THE ANNUAL TURNOVER OR ANNUAL BALANCE-SHEET TOTAL OF AN ENTERPRISE HAD TO BE BELOW 40 MILLION LIRAS FOR IT TO QUALIFY AS AN SME.

Amendments have been made to the Small and Medium Enterprise (SME) definition. According to the former definition, the annual turnover or annual balance-sheet total of an enterprise had to be below 40 million liras for it to qualify as an SME. In the new definition, this limit has been raised to 125 million liras.

The Cabinet’s “Regulation on the Amendment of the Regulation on the Definition, Qualifications and Classification of Small and Medium Enterprises” was promulgated in the Official Gazette and became effective.

According to the regulation, micro, small and medium sized enterprises are classified as follows;

    • Micro enterprise: Businesses that employ fewer than 10 employees and have an annual turnover or annual balance-sheet total not exceeding 3 million liras.
    • Small enterprise: Businesses that employ fewer than 50 employees and have an annual turnover or annual balance-sheet total not exceeding 25 million liras.
    • Medium-sized enterprise: Businesses that employ fewer than 250 employees and have an annual turnover or annual balance-sheet total not exceeding 125 million liras.

Furthermore, businesses that have a risk balance within the scope of treasury backed guarantees provided by the Kredi Garanti Fonu AŞ (Credit Guarantee Fund) and did not previously qualify as SMEs will continue to benefit from the treasury backed guarantee limits provided to credit guarantee institutions till the end of the year.

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