Company Formation for Online Marketplace Sales

As digital transformation has accelerated in recent years, online marketplaces have become one of the easiest channels for both individual entrepreneurs and small businesses to enter e-commerce. Major platforms such as Trendyol, Hepsiburada, Amazon, Çiçeksepeti, and n11 make selling more accessible through their established customer bases. However, many entrepreneurs face an important question at this stage: Is forming a company mandatory for selling on an online marketplace? This question frequently arises, especially among beginners. The basic rule is this: In Türkiye, a company is required to sell regularly on marketplaces and issue invoices. A one-off sale may be made as an individual, but forming a company is mandatory if you want to open a marketplace store. This is because the tax system requires commercial activities to be officially recorded. Therefore, the answer is clear for entrepreneurs wondering, “I will only sell small quantities; do I still need a company?” Yes, because a tax certificate is required to open a seller account. However, merely forming a company is not enough. You must choose a company type suitable for online marketplace sales, define the correct scope of activity, understand your tax obligations, and plan cash flow effectively. This article provides a comprehensive overview of the entire process, including details that new entrepreneurs often overlook when making decisions. ## Which Company Type Is Suitable for Online Marketplace Sales? There are three main types of company that can be established to sell on online marketplaces: sole proprietorship, limited liability company, and joint stock company. One of the first questions beginners usually ask is, “Which is more advantageous?” The answer always depends on personal goals, financial capacity, and growth plans. ### Sole Proprietorship and Its Advantages For many entrepreneurs, a sole proprietorship is the most suitable option when starting to sell on online marketplaces. It is easy and inexpensive to establish and can be opened within 1 day. Closing it is also relatively quick. For this reason, it is frequently preferred by those who say, “I want to test the market.” Another common question is, “Will marketplaces trust me if I open a sole proprietorship?” The company type does not matter to marketplaces; what matters is that all documents are complete. A sole proprietorship therefore creates no disadvantage in this respect. Its tax system is based on personal income tax, with rates increasing progressively according to income. This can provide a tax advantage during the initial period when income is low. ### Is It Necessary to Choose a Limited Liability Company? Another common question is, “Is a limited liability company mandatory for online marketplace sales?” No, it is not. However, a limited liability company may offer a more professional structure for those planning high-volume sales over the medium and long term. Although its formation costs are higher and closure is more difficult, its flat corporate income tax rate may provide a tax advantage once turnover reaches a certain level. One of the main advantages of limited liability companies is their more professional ownership structure. If your future goals include expansion, attracting investment, or establishing a franchise model, a limited liability company may be the better choice. ### When Does a Joint Stock Company Make Sense? Another topic many new entrepreneurs wonder about is, “Do I need to establish a joint stock company?” A joint stock company is not required for marketplace sales. It is generally preferred by businesses with substantial capital that plan to attract investment or want to simplify share transfers. It usually creates unnecessary costs for early-stage e-commerce entrepreneurs. ## What Are the Company Requirements for Different Marketplaces? Each marketplace sets its own seller registration process and document requirements. However, they share one common requirement: being registered as a taxpayer. Some marketplaces may also conduct additional checks. Entrepreneurs often ask, “Do I need a separate company for each marketplace?” No, you can open stores on all marketplaces through a single company. The main documents requested by platforms are: - Tax certificate - Signature declaration - Trade Registry Gazette (depending on the company type) - IBAN and bank details - Copy of the authorized representative’s identity document - Where necessary, a NACE code covering the relevant business activity Once these documents are ready, the store-opening process proceeds quite quickly. ## How Should the Correct Scope of Activity Be Chosen for Online Marketplace Sales? Defining the scope of activity when forming a company establishes the legal boundaries of its commercial operations. Many people wonder, “Do I need to add a separate business activity for every product?” In most cases, if you will be trading online, selecting a broadly defined wholesale or retail activity is sufficient. However, additional NACE codes may be required depending on your product category. ### Main NACE Code for E-Commerce The most commonly used code for online sales in general is:

47.91.14 – Retail trade conducted by mail order or via the internet. This code is sufficient to open a store on marketplaces.

However, some products may require additional permits and business activities. Examples include: - Food supplements - Medical products - Cosmetics - Toy categories - Baby products In these cases, both the marketplace and public authorities may request certain permits. Legal requirements must therefore be carefully reviewed when creating a product range. ## How Should the Cost of Forming a Company for Marketplace Sales Be Planned? Many entrepreneurs overestimate or incorrectly calculate the cost of forming a company. In fact, the cost of establishing a company for online marketplace sales is generally affordable. The key question here is, “How much capital do I need to start?” The initial cost of a sole proprietorship is low. The main expenses are accounting, tax obligations, and marketplace commissions. Establishing a limited liability company requires declared capital, but this capital does not have to be physically retained in a bank account. Expenses that should not be overlooked when planning include: - Accounting fees - Bağkur contributions (mandatory for sole proprietorships) - Marketplace commissions - Shipping fees - Product costs - Invoicing software - Advertising budget Some entrepreneurs expect to make a profit in the first month. However, cash flow in marketplace sales usually stabilizes after several months, particularly when operating with inventory. ## How Do Tax Procedures Work When Forming a Company for Online Marketplace Sales? Tax procedures in e-commerce are quite straightforward when managed regularly. However, the questions that confuse beginners most are:

“Will I pay tax separately on every sale?”

“Does the marketplace issue invoices on my behalf?” Marketplaces do not issue invoices on your behalf. Your company is responsible for invoicing all sales. Therefore, e-invoices or e-archive invoices are mandatory. Personal income tax for a sole proprietorship or corporate income tax for a limited liability company is calculated periodically rather than paid separately for each sale. Sellers are also liable for VAT. It is therefore important to know the VAT rate applicable to the product you sell. Some small entrepreneurs ask, “Can I sell without VAT?” This is not possible; the invoice must reflect the applicable VAT rate of the product. In addition, the VAT charged on marketplace commissions may be recorded as an expense. Obtaining professional accounting support is therefore highly important. ## Choosing a Suitable Product and Business Model for Online Marketplace Sales Forming a company is only the beginning; what truly matters is reaching the right audience with the right product. Because competition on marketplaces is intense, product selection determines the outcome of the entire venture. Many people ask the following questions:

“Can every product be sold on a marketplace?”

“Can I overcome the competition by selling best-selling products?” The key is to focus not on high-volume products, but on products with high profit margins and low competition. Trending products sell quickly, but price wars often reduce profits. Choosing the right business model is equally important: - Dropshipping - Testing with a small amount of inventory - Selling branded products - Selling custom-manufactured products - Selling imported products Each model has advantages and disadvantages. For beginners, testing with a small amount of inventory enables low-risk, controlled growth. ## The Strategic Role of the Company in Marketplace Store Management When selling on an online marketplace, the company is not only a legal requirement but also the center of the operation. Financial management, inventory control, shipping processes, supply chain management, advertising expenses, and customer satisfaction all depend on the company structure. For this reason, many entrepreneurs ask:

“Can I grow my marketplace sales without expanding my company structure?” Yes, this is possible, but professional processes become necessary after a certain point. In particular: - When monthly turnover increases - When a new product range is added - When the advertising budget grows - When warehousing or staffing needs arise The company structure may also need to be updated. This may involve changing the company type, adding a business activity code, or changing the trade name. ## Company-Focused Strategic Approaches to Growing Marketplace Sales Online marketplace sales do not deliver major success overnight; growth comes from combining the right product, pricing, and marketing strategies. Establishing the company on solid foundations and keeping financial processes transparent are essential to healthy growth. One critical question many entrepreneurs ask is:

“What should I focus on first to increase my sales?” The initial priorities are generally: - Optimizing product descriptions - SEO-friendly titles - High-quality images - Using marketplace advertising - Competitive yet profitable pricing - Fast shipping and customer satisfaction On the company side, priorities include: - Regular accounting oversight - A low-cost, high-efficiency approach - Inventory management systems - Sales and product performance analyses Each step contributes to the company’s healthy growth. ## A Long-Term Business Plan for Online Marketplace Sellers Marketplaces are highly competitive, but they also offer the potential for very rapid growth with the right strategy. The decisive factor is structuring the company in line with sales volume and growth plans. A common mistake among beginners is viewing the company solely as an “obligation.” In fact, the company provides the professional foundation that directly affects everything from marketing strategy and cash flow to sourcing and competitiveness. Marketplace operations conducted through a properly established company with the right scope of activity, clearly defined costs, and correctly planned tax obligations become far more scalable and sustainable. Every step taken by the entrepreneur becomes more controlled, risks are easier to manage, and the investment needed for growth can be directed to the right areas. In conclusion, forming a company for online marketplace sales is not only a legal requirement but also a strategic step that underpins the entire business model. With a solid start, the opportunities offered by e-commerce become much more visible and achievable thanks to the broad customer base and sales potential provided by marketplaces. This approach offers a strong roadmap for both new entrepreneurs and businesses seeking growth.