Bağ-Kur Guide for New Company Founders

Starting a new company is exciting, but it also brings complex processes with it. Topics such as tax liability types, accounting setup, and social security obligations require entrepreneurs to take the right steps from day one. One of the most confusing topics is often Bağ-Kur: “Am I covered by SGK or Bağ-Kur?”, “How do I calculate my premium?”, “What benefits can I use?”

In this guide, we explain what Bağ-Kur is for newly founded entrepreneurs, how it differs from SGK, how premiums are calculated, and all the details you should pay attention to.

What Is Bağ-Kur?

Bağ-Kur (Social Insurance Institution for Tradesmen, Artisans, and Other Self-Employed Workers) is a system established in Turkey to meet the social security needs of people working on their own behalf and account. With the reform in 2006, Bağ-Kur was merged under SGK (Social Security Institution). However, the term “Bağ-Kur” is still widely used in everyday language.

Technically, Bağ-Kur is the insurance status defined under Article 4/b of Law No. 5510 on Social Insurance and General Health Insurance. This status covers self-employed individuals — including tradesmen, artisans, company shareholders, and freelance professionals.

Who Is Covered by Bağ-Kur?

• Those who are income taxpayers under real or simplified procedures due to commercial or freelance income
• Shareholders who are also board members of joint-stock companies
• Shareholders of limited liability companies
• Partners in collective companies and limited partnerships
• Farmers engaged in agricultural activities (under 4/b)
• Jockeys and trainers

In short, the moment you start your own business, there is a very high chance that you fall under Bağ-Kur (4/b).

Differences Between SGK and Bağ-Kur

The question “SGK or Bağ-Kur?” is actually not the right comparison. SGK is the umbrella institution that manages all branches of social security. However, in common language, SGK usually refers to 4/a (SSK) employment-based insurance. Here are the main differences between 4/a and 4/b:

Insurance Status

Differences in Retirement Conditions

For 4/b insured individuals, retirement requires more premium days than 4/a. While 7,200 days are enough under 4/a, 9,000 days are required under 4/b. This makes it even more important for entrepreneurs to start paying premiums early.

In addition, the pension calculation rate for 4/b insured individuals may be slightly lower than for 4/a. For this reason, evaluating extra savings tools such as private pension plans can be a smart strategy.

Bağ-Kur Registration Process

Automatic Registration

When you establish a company, your records at the trade registry office or tax office are reported electronically to SGK. Based on this notification, SGK automatically registers you under 4/b status. So, you do not need to submit a separate application.

Registration Start Date

• Limited company shareholders: The date the company is registered in the trade registry
• Board members of joint-stock companies: The date they are elected to the board
• Sole proprietors: The date tax liability begins

Things to Watch Out For

• Check your registration on e-Devlet
• Follow whether the SGK registration notice has been issued
• If there is an incorrect or missing registration, immediately apply to the provincial SGK office

How Is the Bağ-Kur Premium Calculated?

Bağ-Kur premium calculation is one of the most frequently asked topics by entrepreneurs. Let’s review the main parameters valid as of 2026.

Premium Rates

Bağ-Kur premiums consist of the following items:

• Disability, old age, and death insurance: 20%
• General health insurance: 12.5%
• Total: 32.5%

Premium Base

4/b insured individuals can determine their premium-based earnings between the minimum wage and 7.5 times the minimum wage. If no preference is made, the premium is calculated based on the minimum wage.

Example Calculation

When calculated based on the minimum wage:

• Monthly gross minimum wage (2026): Based on the current minimum wage amount
• Premium rate: 32.5%
• Monthly premium amount: Gross minimum wage × 0.325

If you choose a higher income level, your premium amount will increase, but your pension will also rise accordingly.

Premium Payment Schedule

• Bağ-Kur premiums must be paid by the end of each month
• Payment can be made through banks, PTT, e-Devlet, or SGK’s online services
• In case of delay, a daily late payment surcharge is applied
• If premium debt exceeds 60 days, healthcare services may be suspended

Advantages of Bağ-Kur

The Bağ-Kur system offers important advantages to entrepreneurs:

1. Social Security Coverage

Even if you run your own business, you benefit from retirement, healthcare, disability, and death insurance rights. This means that the basic protections employees have are also provided to self-employed individuals.

2. Access to Healthcare Services

As long as you pay your premiums regularly, both you and your dependents (spouse, children, parents) can benefit from public hospitals and contracted private healthcare institutions.

3. Tax Advantage

The Bağ-Kur premiums you pay can be deducted as an expense from your income tax base. This creates significant tax savings, especially for entrepreneurs in higher income brackets.

4. Pension Income

Once you reach the required number of premium days, you become entitled to a lifelong pension. Moreover, you can continue working after retirement (by paying social security support premium).

5. Disability and Death Insurance

In the event of a workplace accident or occupational illness, you may receive temporary or permanent disability benefits. In case of death, a pension is granted to your beneficiaries.

Disadvantages of Bağ-Kur and Points to Consider

1. High Premium Burden

The entire premium burden belongs to the insured person. Unlike 4/a, there is no employer contribution here. This can be challenging, especially for entrepreneurs struggling with cash flow in the early years of business.

2. More Premium Days Required

Retirement requires 9,000 premium days (approximately 25 years). This period is longer than for 4/a insured employees.

3. Risk of Healthcare Suspension

If premium debt exceeds 60 days, your healthcare activation may be suspended. This is why regular premium tracking is critical.

4. Risk of Lower Pension Income

If you pay premiums based on the minimum level, your future pension will also be low. If possible, choosing a higher premium base provides a long-term advantage.

Practical Tips for New Entrepreneurs

What You Should Do in the First 12 Months

1. Check your registration: After establishing your company, verify your SGK registration status via e-Devlet.
2. Create a premium payment plan: Make sure to include the Bağ-Kur premium among your fixed monthly expenses.
3. Set up automatic payment: Arrange automatic bank payments to avoid late fees.
4. Record your expenses: Track all business expenses, including Bağ-Kur premiums, regularly from day one.

Long-Term Strategy

• Review your premium base: As your income grows, consider increasing your premium base.
• Consider private pension plans: Support your Bağ-Kur retirement income with a private pension plan.
• Service consolidation: If you have previously worked under 4/a, you can combine your service records to increase your total premium days.
• Borrowing options: You can complete missing premium days through options such as military service or maternity borrowing.

Cash Flow Management

For a newly founded business, the Bağ-Kur premium is a fixed cost that should not be underestimated. To manage this cost effectively:

• Keep your monthly income-expense table updated
• Include premium payments in your cash flow plan
• Send premium receipts regularly to your accountant to benefit from tax deductions
• Track all business expenses digitally

This is exactly where systematically tracking your business expenses from day one makes a big difference. By using an expense management platform like Masraff, you can monitor, report, and simplify your accounting processes for all expenses, including Bağ-Kur premiums, from a single place.

Frequently Asked Questions

Can I be covered under both 4/a and 4/b?

Yes, but in this case, 4/a status takes priority. If you work for an employer while also being a company shareholder, your insurance continues under 4/a and you do not pay 4/b premiums (except for certain exceptions).

What happens if I do not pay my Bağ-Kur premium?

Your premium debt accumulates together with late fees. If the debt exceeds 60 days, your healthcare services are suspended. In the case of long-term debt, you may benefit from restructuring programs.

If I close my company, does my Bağ-Kur registration close automatically?

When your trade registry record is deleted or your tax liability ends, SGK is notified and your registration is closed. However, you should always verify that this process is completed correctly; otherwise, premium debt may continue to accrue.

Is voluntary Bağ-Kur possible?

Yes. People who are not under any mandatory insurance status can voluntarily register under 4/b. In this case, the premium rate is applied as 32%.

Conclusion

Starting a new company is one of the most exciting steps in the entrepreneurial journey. But alongside that excitement, you also need to manage your social security obligations correctly. The Bağ-Kur system is a comprehensive social security solution designed for self-employed individuals, and as long as you pay your premiums regularly, it provides access to essential protections such as healthcare, retirement, and disability coverage.

One of the secrets of being a successful entrepreneur is tracking your financial obligations with discipline from day one. Keeping regular records of all your financial movements — from Bağ-Kur premiums and tax payments to office expenses and travel costs — protects both your legal compliance and your financial health.

If you want to take control of your business expenses from the very beginning, try Masraff for free. Manage everything from expense tracking to approval processes on a single platform and gain more time to focus on your business.