The Regulation on Small and Medium-Sized Enterprises

The Regulation on Small and Medium Enterprises (Regulation) entered into force through publication in the Official Gazette dated 25.05.2023 and numbered 32201. The Regulation superseded the Regulation on the Definition, Qualifications and Classification of Small and Medium-Sized Enterprises (Superseded Regulation), which was put into force by the Resolution of Council of Ministers dated 19.10.2005 and numbered 2005/9617. The amendments made by the Regulation are summarized below:

• In the Superseded Regulation, Small and Medium-sized Enterprises (SMEs) were defined as enterprises that employ less than 250 employees and whose annual net sales revenue or financial balance sheet do not exceed 250 million Turkish Liras.
• With the Regulation, while the thresholds for the number of employees remain unchanged, the annual net sales revenue or financial balance sheet thresholds have been increased from 5 million Turkish Liras to 10 million Turkish Liras for micro enterprises; from 50 million Turkish Liras to 100 million Turkish Liras for small enterprises; and from 250 million Turkish Liras to 500 million Turkish Liras for medium-sized enterprises.