Tax (Income and Company)
According to Tax Administration ruling NY Start Up -mini-companies don’t need not to register as an official enterprise. This requires that NY Start Up Program is part of curriculum and students receive academic credit for it.
- Mini-companies have no legal status and are instructed to use the school business identity number if needed (Some retailers cannot sell to individuals).
- Mini-companies register on the NY Office database;
- Mini-companies have a maximum share capital of 1300 EUR;
- Maximum investment per student is 100 EUR;
- Max turnover is 10 000 EUR/company
- If the turnover exceeds 10 000 € the company will be subjected to VAT-tax as regular companies.
- Students are required to set up a real company if the turnover is likely to exceed 10 000 EUR.
- All mini-company profits are taxable as students’ personal income. Take note, there is 2000 Euro/year minimum income before tax is levied, but as most students receive student money/benefits this minimum limit is most likely full.
Agreements and participation right
- In order to join to NY Start Up -program the institution needs to be university or university of applied science. There are no formal agreement to sign before joining the program.
- Teachers need to register to this portal and indicate they are running the course.
Program time and coverage
NY Start Up program and for example right for Insurance coverage and NY Biz ID usage has the following limitations
- Companies can only make financial transactions (buy/sell) after they have registered in nystartup.fi -site
- Companies can operate during the course time. If the NY Start Up -course starts 13.9.xx and finishes 15.5.x1 the companies can operate inside timeframe. NY Start Up -is an entrepreneurial learning experience and course, thus the companies must finish their activities within the course limits. If the company wishes to continue operations, students can form for example an open company, join cooperative etc. This is highly recommended. See more on Next steps and links
Students are allowed to sell wherever and whenever (as long as the general rules and laws are abided) they want but institutions may impose restrictions on particular items students produce or sell.
- Usually the case where a programme is linked to professional studies (artisans, education, design, forestry etc.), and students also receive credits based on the product innovation, design etc.
Safety / Insurance
Students are normally covered by basic insurance as taking part in NY Start Up -company tasks. They are considered students participating in regular student activities. In general, schools assume the responsibility for minor accidents. JA Finland has a liability insurance to cover non-company related accidents. We cannot insure the direct activity mini-companies are performing due to the lack of information of the field, risk level and requirements for the activity beforehand. See the examples below.
Examples of the insurance cover in JA Finland (for reference only):
- Student goes to fix computer and trips over an expensive TV. This is a non-company related accident and is covered (he was not planning to fix the TV).
- Student is cleaning the house and breaks expensive TV while cleaning it. Insurance does not cover since the company is actually cleaning the object it broke.
In most cases insurance provided by the institution is sufficient. Teachers are asked to consult JA Finland, if students are planning to engage in potentially dangerous activities.
Solely the companies registered with JA Finland as student companies are covered by the insurance.
Business Number (Business ID or Y-tunnus)
What is a Business ID
Business ID is company’s “social security” -number that’s given by the company registration office when the company is formed. Finnish Business ID:s can be checked from www.ytj.fi. NY-Start Up -companies don’t have their own Business ID’s since they are reserved only for real companies (with all the company duties included).
When does NY Start up company need Business ID (Y-tunnus in Finnish)
If you sell products to companies, these may require Business ID from the seller. As a general rule, NY that companies can use universities or colleges business ID. If that can not be used, the teacher should apply for a Business ID to NY-company (see directions at the end of the page).
Purchases (Nuori Yrittäjyys Business ID not available)
In general, NY, the company purchases can be made in a personal capacity. Some companies (eg. the wholesalers) selling their products only to other companies may therefore require the purchaser to its business ID. In this case, NY, the company should look for another shop, where to buy the products. Sometimes when purchasing goods for NY-copany, the student’s personal identity can be used.
NOTE! Some companies report the prices separately for both businesses and private individuals. Prices for companies in general are without VAT. NY-company will, however, pay VAT when purchasing, so VAT can’t be avoided.
Applying for a Business ID to use in NY Start Up -company sales:
- Download and fill out the license application (download form (pdf)) (form is in Finnish, due legal text. Please let us know if you need it in English)
- Scan the application and send it by e-mail NY’s office:
You can send a form letter to NY’s office:
Nuori Yrittäjyys ry / Kuortaneenkatu 2, 00510 HelsinkiMarking the envelope: Business ID
- We process the application and send you the approval or rejection by e-mail with instructions to the teacher.