Final Report of the Expert Group - European Commission - Europa

cooperate legally with other commercial enterprises (for example, to sell their products toshops, to place bigger orders, to purchase cheaper stock materials in distribution centers andso on). Finally, mini-companies may not be allowed to open a bank account, thus having nopossibility of making payments by bank transfer.It should be clear to everybody what the limits and the rights of a student company are, thenthese programmes will be able to develop and grow. Legislation or administrative proceduresshould allow students to trade with real companies (for instance, to sell their products toshops), while having a lower level of risk than real companies. This way students can learnmuch more about acting in the real world of business.While in some countries a specific regulatory framework for student companies has beenestablished or agreements between promoting organisations and financial authorities are inplace (e.g. Belgium, Germany, Finland, the Netherlands and Norway), in others nospecific action was necessary because the existing framework does not hinder in any way theactivity of student companies.In Belgium, the VAT office has granted student companies an exemption from paying VATby means of a formal administrative decision.In Finland, the tax authorities have established rules for mini-companies taking part in thestudent company programme. To make sure there will be no difficulties with tax authorities,the procedure for reporting mini-company income in the tax declaration is explained. Theserules also prevent the misuse of the mini-company status in case of “real” enterprise activities,and define the limits of the mini-company. The Student Company programme can be run inschools with real money, and when the turnover exceeds 3000 EUR the mini-company isadvised to visit the local tax authorities. A VAT number is also available if student companiesneed one.In the Netherlands, student companies are registered not with the Chamber of Commerce butat Jong Ondernemen (the organisation which promotes mini-companies) and there is anagreement with tax authorities that student companies pay taxes to Jong Ondernemen in orderto avoid administrative problems (as student companies are only set up for one school year).Insurance is also in place to protect student companies against liability and to offer them legalaid.In Norway, student companies do not pay taxes or VAT. They do not have to register withthe central registration office for private companies, publish end-of-year reports etc. The taxregulations provide for the possibility of making a certain profit without having to pay anytaxes.In many cases, the student company programme is organised in cooperation with aninstitution that provides legal certainty for the student company and covers the insurance. Theinstitution gives rules of procedure to the student company that need to be followed by theparticipants. This is the case for instance in Germany (e.g. the Deutsche Kinder-undJugendstiftung and the programme “Schüler unternehmen was!”). Also in Austria, the legalstatus and administrative organisation of student companies is ensured by the nationalpromoting organisations (ACT, Junior) on the basis of special agreements with nationalauthorities, in order to prevent any legal problems.Where necessary, the existing framework should be improved, as running a mini-enterprisecan cause the students, teachers and schools taking part significant administrative and legal49