What are the JA StartUp companies and what kind of limits they have
JA Start Up company has no legal status. This means that members of the student company are considered as private individuals who pursuit some profit gaining activity.
What does this mean in taxation and VAT
Basically JA StartUp -company is entity that’s used to calculate the amount of taxable income for every member. See more on tax and VAT.
Responsibilities and possible loand in the JA Start Up -company
Participants of the start up company are responsible for the actions and agreements made on behalf of the company. JA companies are not allowed to take loans so there should not be issues with dept. In case members have broken this rule, they are responsible for possible loss of money and paying back the loans etc.
Terminating the JA Start Up company
There are no official documents to fill to terminate the JA Start Up -company. Since this is part of the study program, you are not required to turn in financial documents etc.
Why JA Start Up -companies are not real companies?
We have considered the pros and cons for setting up a real company and currently we advice agains it, for the following reasons.
- Setting up a real company costs money and creates responsibilities to different authorities. Terminating the company just after one year is also extra hassle we would like to avoid.
- Program is designed to test your idea, so tax-benefits are fairly redundant on the testing phase.
- Finnish persons can (according selection process) receive start-up support if they set up their own company. This support cannot be given to established companies.
- Governmental student benefits (opintotuki) could be at risk if student founds a private company.
- There are business accelerations for new companies.