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Purpose of the Rules

NY Start-Up is about using a real money while running the NY-company. This makes the action more realistic and you can actually sell your products to paying customers. Making the first sale is a feeling that’s hard to beat!
Real money requires also some additional administration considering the turnover limit, company legal form, taxation (Personal and VAT), business ID and insurance. Read the main rules below.

Rule sections

Legal form and registration - no legal form

Legal form and Registration of NY Start Up -company

  • NY Start Up -mini-companies don’t need to register as an official company.
  • NY Start Up -companies are not legally companies, but they are considered as personal activities for income generation.
  • NY Start Up Program is part of the curriculum and students receive academic credit for it.
  • 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 10000€ and no-VAT

Max turnover 10 000 and no VAT

  • Max turnover for NY Start Up -companies is 10 000€/company
  • If the turnover is likely to exceed 10 000 EUR, you need to set up a real company.
  • NY Companies do not pay VAT.
  • VAT cannot be deducted!
Tax - all income as personal income

Tax – all income as personal income

  • NY Start up -company does not pay any taxes and all the profits must be paid out to company owners.
  • All mini-company profits are taxable as personal income.
  • Company income must be declared in tax forms and “other income”.
Operating time and sales

Operating time and starting the sales

NY Start Up program and for example right for Insurance coverage and NY Biz ID usage has the following limitations

  1. 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.
  2. Companies can start sales after the registration is accepted on www.nystartup.fi -site and the company is visible in the company register.
  3. Planning the business has no restrictions, this only applies for customer sales.
Insurance coverage - NY takes extra coverage insurance

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 ID - Y-tunnus for NY Start Up -company

Business ID (Y-tunnus in Finnish)

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).

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.

When does company need Business ID

Sales

  • 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 require business ID. In this case, NY, the company should look for another shop, where to buy the products.
  • Sometimes when purchasing goods for NY-company, 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

You can apply a the right to use Nuori Yrittäjyys ry business ID for your company sales.

  1. Download and fill out the license application Download form (form is in Finnish, due legal text. Please let us know if you need it in English)
  2. Scan the application and send it by e-mail NY’s office:
    [email protected]
    You can send a form letter to NY’s office:
    Nuori Yrittäjyys ry / Kuortaneenkatu 2, 00510 HelsinkiMarking the envelope: Business ID
  3. We process the application and send you the approval or rejection by e-mail with instructions to the teacher.

 

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