Is it possible to do e-commerce without establishing a company?

Is it possible to do e-commerce without establishing a company? The question "What is the right answer to this question?" is one of the most fundamental questions that preoccupies thousands of people embracing the entrepreneurial spirit of the digital age. The idea of starting your own business online, avoiding the burdensome costs of a physical store, such as high rent, bills, and staffing, is more popular than ever. 

However, before entering this alluring world, a solid understanding of the legal and financial implications of each step determines the fine line between success and disappointment. So, is it really possible to sell online without a tax certificate or establishing an official business identity? 

In this article, we will unpack all the layers of this problem, e-commerce without opening a company We will cover in detail what it means to do so, under what conditions exceptions such as the "Tradesman Exemption" are valid, its potential advantages, serious risks that should not be ignored, and the steps to follow for a successful e-commerce operation.

Is it possible to do e-commerce without opening a company?

The clearest and shortest answer to this question, within the framework of Turkey's Tax Procedure Law and Income Tax Law, is "no." A commercial activity is defined as the ongoing conduct of a business with the aim of generating profit. Therefore, when your online sales go beyond one-time sales of personal items and become regular, they are considered commercial activities. 

It's a legal obligation to declare and tax every penny of income earned from commercial activities. For this taxation to occur, you must be a "taxpayer," meaning you must have a business registered in your name.

However, the legislature has introduced a very specific exception to this rule: Tradesman ExemptionThis exemption, detailed in Article 9 of the Income Tax Law, exempts small artisans and tradesmen who meet certain conditions from tax. 

In the context of e-commerce, the requirements for qualifying for this exemption are quite clear and exclude most e-commerce models:

1. Producing the Product Yourself: The most fundamental requirement for the exemption is that the product sold must not be a commodity purchased or sold abroad. You must produce the product yourself, in your home or a small workshop, without using industrial or mass-produced machinery. For example, items such as hand-knitted sweaters, custom-designed jewelry, wooden carvings, and homemade jam or tomato paste may be eligible. However, selling T-shirts purchased from China or a local wholesaler is completely exempt.
2. Not Opening a Business: You must operate on a mobile basis or without a business premises. Working from home is suitable for this purpose.
3. Annual Turnover Limit: The most critical financial requirement for benefiting from the exemption is that revenue (turnover) generated within a calendar year does not exceed a limit set by the Ministry of Finance. This limit is updated annually based on the revaluation rate. For 2025, this limit has been determined as 1,580,000 TL. Once you exceed this amount, you lose your right to exemption and must establish a company to be taxed in the real manner from the beginning of the following calendar year.
4. Obtaining a Tradesman Tax Exemption Certificate: To benefit from this exemption, you must apply to your local tax office and obtain a "Tradesman Tax Exemption Certificate." You must open a commercial bank account and collect all your revenue through this account. Banks withhold (deduct) 4% of the money received from this account (if the products are sold online or on similar platforms) and pay it to the tax office on your behalf.

Any regular transactions outside these conditions Doing e-commerce for its activity Establishing an e-commerce company it is a legal obligation.

What are the advantages of e-commerce?

There are tangible advantages that underlie the popularity of e-commerce and attract entrepreneurs. It's important to detail these advantages to understand your motivation:

1. Low Operational Expenses: Dozens of high costs associated with opening a traditional store, such as shop rent, deposits, real estate agent commissions, electricity, water, and natural gas bills, staff salaries, social security premiums, and municipal taxes, are either absent or significantly lower in e-commerce. This allows you to direct your capital directly to product and marketing.
2. Unlimited Geographic Reach: With an e-commerce site you set up in Samsun, you can sell not only to your own city but also to Istanbul, Hakkari, and even, with the appropriate infrastructure, to customers in Germany. Eliminating geographical boundaries expands your potential customer pool to millions, even billions.
3. Data-Driven Marketing and Sales: Thanks to e-commerce platforms and digital marketing tools (Google Analytics, Meta Business Suite, etc.), you can analyze in detail who visits your site, what products they browse, the city they're connecting from, and demographic information like age and interests. This data allows you to target your ads directly to the most interested audience, allowing you to maximize your marketing budget.
4. Uninterrupted Sales (24/7): Unlike brick-and-mortar stores, your ecommerce site or marketplace store continues to serve customers and take orders even when you're sleeping, on vacation, or otherwise busy. This offers the potential for a revenue stream that's independent of time and location.

The Pros of E-Commerce Without Creating a Company

Putting aside legal obligations for a moment, entrepreneurs selling without establishing a company There are rational reasons behind why a business idea is wanted. The main benefit of this approach is that it provides the opportunity to test (validate) a business idea in its simplest form and with minimal risk. E-Commerce sole proprietorship Even setting up a company requires certain startup costs (notary, financial advisor, chamber of commerce registration, etc.) and fixed monthly expenses (BAĞ-KUR premium, accountant fee, stamp duty). Taking on these costs when you're not yet sure whether your product will sell or whether you've set the right price can be daunting. Without establishing a company, for example, by selling solely through an Instagram account;

1. You can measure the demand for your product in the market.
2. You can understand who your target audience is and their expectations.
3. You can test the accuracy of your pricing strategy.
4. You can gain practical experience in sourcing and shipping processes. This process acts as a low-cost or even low-cost market research process, effectively putting a business plan from theory into practice. The data and experience gained here will enable you to take much more robust and informed steps when deciding to formalize your business.

Requirements for Sales and Investment Costs

The requirements and costs for starting test sales without establishing a company are quite minimal:

1. Minimum Requirements: A product to sell, a social media account (Instagram/Facebook) to showcase this product, a personal bank account to receive payments, and an individual agreement with a courier company to ship the products.
2. Investment Costs: The primary cost in this scenario is the inventory cost of the product to be sold. Beyond that, a few boxes and packaging materials for packaging and a small social media advertising budget to reach potential customers may be sufficient. In this model, the initial cost may be limited to a few thousand Turkish Lira.
3. Costs in Official Scenario: Establishing a Company for E-Commerce When the decision is made, costs vary. The estimated costs for a sole proprietorship for the 2024-2025 period are as follows:
   • Establishment: Signature circular and accountant power of attorney at the notary (approximately 1,500 – 2,500 TL).
   • Monthly Fixed Expenses: BAĞ-KUR premium (minimum 9,000 TL for 2025, if there is no young entrepreneur exception), monthly financial advisor fee (between 750 - 1,500 TL), declaration stamp taxes (approximately 300-400 TL per month, even if there is no sales).
   • Variable Expenses: Income tax, starting at 15% and progressively increasing on profits, and VAT at 1%, 10%, or 20% for each sales invoice. As can be seen, formalizing a business brings with it significant and regular costs.

The Risk of Ignoring Tax and Legal Obligations

This is the darkest and most dangerous side of the issue. With the thought of "nothing will happen" e-commerce without opening a company Continuing to do so is like sitting on a ticking time bomb. The Revenue Administration (GİB) has been overseeing the digital economy much more effectively in recent years.

By cross-checking data from social media platforms, marketplaces, and shipping companies for money transfers that regularly arrive at bank accounts from different parties (especially those containing notes like "unexplained" or "order price"), individuals operating commercially without taxpayer status can be easily identified. The penalties you face if caught are as follows:

1. Establishment of Liability: A retroactive tax liability is opened in your name.
2. Taxation of All Income: Any "suspicious" money entering your bank account during the identified period will be considered earnings, and VAT and income tax will be calculated. If you can't prove your expenses, these taxes may be calculated based on your turnover, which can be much higher.
3. Tax Loss Penalty: A fine equal to twice the total tax debt you've been notified of will also be assessed. So, if you owe 100,000 TL in tax, you'll also be subject to a 100,000 TL fine.
4. Penalties for Irregularities: Penalties for irregularities are also applied for each legal obligation, such as not issuing invoices or not keeping books.
5. Late Payment Interest: Late payment interest is charged for each month that passes between the date the debt is incurred and the date it is paid. As a result, you could suddenly find yourself owing tens of thousands, or even hundreds of thousands, of lira, while thinking you've made a few thousand lira in profit. This risk is simply not worth taking.

Tips for Successfully Running an E-Commerce Business Without a Company

The phrase "unincorporated" here should be interpreted not as operating illegally, but as "a prudent preparatory process before formalizing." To manage this process most effectively:

1. Record Everything: From day one, record every penny of your income and expenses—the cost of every product you sell, the sales price, shipping costs, and advertising expenses—in an Excel file or notebook. This will give you a clear picture of your business's profitability and give your financial advisor a clean slate once you're officially established.
2. Use a Separate Bank Account: To avoid mixing your personal expenses with your business income, open a new checking account specifically for this purpose and collect all sales revenue there. This will make tracking easier and provide clarity in the event of a future investigation.
3. Determine Your Formalization Trigger: Set a concrete, measurable goal for yourself, like "When I reach 5,000 TL monthly turnover" or "When I surpass 100 total orders." Once you reach this goal, immediately consult with a financial advisor and begin the process of establishing a sole proprietorship.
4. Research Young Entrepreneur Support: If you're under 29 and haven't established a company before, you can benefit from the "Young Entrepreneur Support." This support will cover your BAĞ-KUR (Turkish Employment Agency) premiums for one year, and you'll be exempt from income tax up to a certain amount (330,000 TL per year for 2025) for three tax years. This is a great opportunity that significantly reduces your startup costs. Consider this incentive when planning your company incorporation.

Conclusion

At the beginning of the entrepreneurial journey, Is it possible to do e-commerce without establishing a company? The most honest answer to the question is that this path can only be a "test run." Avoiding the startup costs and bureaucratic processes that come with establishing a company, gauging the potential of a business idea through channels like social media, taking the pulse of the market, and testing product-customer fit is undoubtedly a smart first step. This preparatory phase provides you with invaluable field experience.

However, it is important to never forget that this track has an end and that the real race – being a sustainable and legal business – requires an official starting line. 

Turkish tax laws mandate the taxation of all recurring business profits. Ignoring this legal framework risks being detected sooner or later by the Revenue Administration's sophisticated oversight mechanisms and facing devastating tax penalties and interest far exceeding the accumulated profits.

Therefore, Doing e-commerce If your goal is to grow, brand and earn income in a legal manner without worrying about this business, Establishing a Company for E-Commerce it is not an option, it is a necessity.

Especially considering the incentives such as “Young Entrepreneur Support” offered to entrepreneurs under the age of 29, E-Commerce sole proprietorship Taking an official step by establishing your company is the best investment that will enable you to look to the future with confidence by laying the foundations of your business on solid ground.