Do You Need a Company to Sell Online in Turkey?

Why you need a company

There are three reasons. First, payments: to take card payments you need a payment gateway, and payment providers such as iyzico and PayTR, as well as banks, usually ask for a tax certificate when you apply. Second, invoices: anyone selling online in Turkey has to issue an e-archive invoice for each sale, which requires being a registered taxpayer. Third, tax: regular sales made for profit count as commercial income and require tax registration.

So the question is usually not "should I set up a company" but "which company should I set up".

Can you sell online without a company?

There is one exception: if you sell products you make by hand at home (knitwear, handicrafts, homemade food and so on), you may be able to sell without a company by getting a tradesman exemption certificate (esnaf muafiyeti) from the tax office, as long as you meet its conditions. The annual sales limit of this exemption is updated every year, and products you buy from others and resell are not covered.

Selling on marketplaces such as Trendyol and Hepsiburada usually requires a company too; the large marketplaces generally ask sellers for a tax certificate. If you are only testing with a few items, talk to an accountant first and then decide.

Sole proprietorship or limited company?

A sole proprietorship is not a separate legal entity; the tax registration is opened in your name. It is cheaper to set up and to keep the books for, and there is no capital requirement. Profit is subject to income tax, whose rate rises as profit grows. The owner is liable for the business debts with all their assets.

A limited company is a separate legal entity; partners are liable up to the capital they put in. Setting one up requires at least 50,000 TL of capital, and setup and bookkeeping cost more. Profit is subject to corporate tax, and taking money out of the company for yourself is taxed again.

Most small shops start as a sole proprietorship and move to a limited company when profits grow or a partner or investor joins. Which suits you depends on your profit and plans; work it out with an accountant.

Documents needed for a sole proprietorship

Your ID, a residence certificate from e-Devlet, a lease contract or title deed copy for the business address and a signature declaration from a notary. The start of business is reported through the online tax office; a tax officer visits the address, and then the tax certificate is issued.

If your income is commercial, you need to register with the chamber of tradesmen and craftsmen or the chamber of commerce. Then you get an e-signature and start issuing e-archive invoices. In practice an accountant handles most of this; what is left to you is the documents, your signature and being at the address on the day of the visit.

The young entrepreneur exemption for under-29s

People who are under 29 and become taxpayers for the first time pay no income tax on profit up to a set amount for three years, if they meet the conditions. The amount is updated every year with the income tax brackets. The main conditions are reporting the start of business on time and running the business yourself.

The exemption covers income tax only: VAT is still charged on sales and social security (Bağ-Kur) contributions are still paid. If you are young enough, ask your accountant about this exemption before you register.

After the company comes the site

Once the tax certificate is issued, you apply for a payment gateway. Businesses selling through their own site must register with the Ministry of Trade's ETBİS system and prepare legal pages such as the distance sales contract, return terms and the KVKK privacy notice; we cover these in order in our post on starting an online shop.

The site can be built while the company paperwork is in progress; running both at once saves time. With us an online shop starts from $300 and usually goes live in 2-3 weeks. Tell us how many products you have and where you sell, and we will pin down the scope together.