What Is an SME Qualification Certificate and How Is It Obtained? 2025 Guide
The SME qualification certificate is a fundamental document requested by both public institutions and banks, verifying a business’s scale and enabling access to support mechanisms. In this article, we explain what the SME qualification certificate is, the benefits of being an SME for businesses, SME eligibility criteria, how and through which institutions the certificate can be obtained, and the support provided through this certificate.
What is an SME qualification certificate?
An SME qualification certificate is a document that shows a business has been evaluated within the scope of the SME definition and SME eligibility criteria in force in Türkiye and has officially obtained “Small and Medium-Sized Enterprise” status. This certificate is mandatory when applying for KOSGEB support, government incentives, low-interest SME loans, tax advantages, and various financing programs. Both public institutions and banks request this certificate to verify a business’s scale. Therefore, the SME qualification certificate is not merely a classification document; it serves as a critical identity for the business in many areas, from access to finance to growth strategies. To conduct SME determination, it is necessary to assess whether the business is micro, small, or medium-sized based on data such as the number of employees, annual net sales revenue, and balance sheet size, and to verify this information.
The contribution of being an SME to businesses
For businesses, being an SME provides significant advantages both financially and operationally. Businesses that officially obtain SME status can apply for grants, non-repayable support, and interest-free loan programs offered by KOSGEB. In addition, thanks to government-provided SME incentives, they can more easily benefit from tax reductions, investment supports, R&D grants, and digital transformation supports.
SME loans offered by banks also include much more favorable interest rates and flexible repayment options based on this status. Another advantage of being an SME is that it provides official recognition and enhances competitiveness. SME status increases the trust of suppliers, business partners, and public institutions in the business. Moreover, thanks to SME status, businesses gain additional advantages in growth, export, digitalization, and institutionalization processes. In short, being an SME not only offers cost advantages to businesses but also creates a strong infrastructure for long-term growth.
In addition, thanks to SME status, businesses gain additional advantages in growth, export, digitalization, and institutionalization processes. During these processes, businesses can manage both physical and online collections from a single center with Papel POS solutions and optimize their operations.
What are the SME eligibility criteria?
In order for a business to hold SME status, it must meet certain criteria. According to the updated regulation published in the Official Gazette dated August 7, 2025, for a business to be considered an SME, the number of employees must be fewer than 250, and either annual net sales revenue or total assets must not exceed TRY 1 billion. These upper limits also determine whether a business is classified as micro, small, or medium-sized. According to the regulation published in the Official Gazette on the same date (August 7, 2025), micro enterprises must have fewer than 10 employees and turnover/assets up to TRY 10 million; small enterprises must have fewer than 50 employees and turnover/assets up to TRY 100 million; and medium-sized enterprises must have fewer than 250 employees and turnover/assets up to TRY 1 billion. SME eligibility criteria are not limited to financial thresholds; the business’s independence, the absence of control by a larger enterprise, and the compatibility of its ownership structure with the SME definition are also evaluated. When all these criteria are met, an official SME determination is made for the business, and an SME qualification certificate can be issued.
In this context, businesses that sell through digital channels must manage their digitalization processes correctly while maintaining their SME status. If you are considering advancing in e-commerce, you can review the fundamental concepts of digital commerce in our article “What Is E-Commerce? A Guide for Beginners 2025.”
How is the SME qualification certificate obtained?
The application process for obtaining an SME qualification certificate is largely completed digitally. First, the business must register in the KOSGEB system. Then, the “Business Class and SME Qualification Certificate Request” service is accessed via e-Government. On this screen, information about the business—such as activity details, number of employees, annual net sales revenue, or balance sheet data, and tax/trade registry information—is declared. If the information is entered accurately and completely, the system automatically generates the SME qualification certificate, which can be downloaded in PDF format.
In fact, completing the “SME Declaration” is the core of this process. Along with the declaration, it is evaluated whether the business complies with the SME definition and criteria; if the evaluation is positive, the SME certificate is issued.
Generally, no physical documents are uploaded during the application; however, in cases where supporting documents may be required, having them ready will facilitate the process. Documents such as the tax certificate, trade registry gazette, signature circulars, latest balance sheet or income statement, and SGK employee records support the application.
From which institutions is the SME qualification certificate obtained?
The authority to issue the SME qualification certificate belongs to KOSGEB. The institution determines whether the business complies with the SME definition and criteria and issues the certificate via e-Government as the “Business Class and SME Qualification Certificate.” Applications are not physical processes; they are carried out online through the e-Government and KOSGEB infrastructure. Although some sources state that the affiliated KOSGEB Provincial Directorate also plays a role in obtaining the certificate, the main certificate issuance and official recognition process takes place digitally.
Supports provided through the SME qualification certificate
The SME qualification certificate enables businesses to access government support, incentives, and financing opportunities. In particular, possessing this certificate is mandatory to apply for KOSGEB grants, loans, and support programs. In addition, certificate holders can benefit from government support in areas such as investment, R&D, digital transformation, and exports.
Financial institutions such as banks and credit organizations also require this certificate for SME loans and favorable business loans. This makes it easier to manage working capital, cash flow, and growth plans. Since the SME qualification certificate provides official recognition, it strengthens the company’s institutional credibility, supplier–customer trust, and competitiveness in tenders and incentive programs. As the certificate officially proves the scale of the business, it is accepted as an important reference in communication and evaluation processes in both the public and private sectors.
This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences arising from them.