You don't need a company to open a Shopify account, but once you sell regularly and earn income in Turkey, it is commercial activity and a company becomes mandatory. Many beginners start as a low-cost sole proprietorship, then switch to a limited company. Sole proprietorships pay income tax, limited companies corporate tax, and domestic sales carry VAT.
Whether you have to start a company to sell on Shopify is a question anyone planning to launch an online business from Turkey needs to answer early on. Technically, you don't need a company to open a Shopify account. However, once you start selling regularly and earning income in Turkey, you are carrying out a commercial activity, and setting up a company becomes unavoidable. In this guide we look at the difference between a sole proprietorship and a limited company, your income tax and VAT obligations, and the most common mistakes.
Can You Sell on Shopify Without a Company?
Shopify does not ask you to start a company; you can open an account and create a store as an individual. But as soon as you start selling regularly and receiving payments in Turkey, the system naturally pushes you towards forming a company.
The clearest evidence of this is in payment infrastructure. Payment institutions operating in Turkey (iyzico, PayTR and others) ask for company details once you reach a certain transaction volume. This is not optional; it is a step required by regulation. The financial system considers ongoing commercial transactions through personal accounts risky, and providers either refuse service or block the process.
The picture is the same on the banking side. When regular sales income starts arriving in your personal account, these transactions are treated as commercial and the account holder is asked to explain them. In addition, the legislation in force in Turkey requires a proper document to be issued for every sale. Shopify does not handle this invoicing process for you; issuing e-Arşiv or e-Fatura invoices (Turkey's electronic invoicing systems) is your direct responsibility.
The "I can start selling without a company" approach may work in the short term, but as your income grows, so does the risk of tax penalties, a frozen account or a payment institution cutting off its service. Setting up the right structure from the start costs far less.
Does the Tradesman's Exemption Apply to Shopify?
The tradesman's exemption (esnaf muafiyeti) is not a permanent solution for a scalable platform like Shopify; at most it can be seen as a temporary option for getting started.
The tradesman's exemption, granted to individuals who produce at home and stay below a certain revenue limit, looks attractive at first glance. But this model clashes with the way Shopify works at a few critical points:
- The exemption requires your activities to stay limited; the more your income grows, the less sustainable it becomes
- As soon as you sell abroad, the scope of the exemption may narrow or it may become useless in practice
- Shopify is by nature a platform built for growth; the exemption limits hold that growth back
If your goal is to build a long-term, sustainable e-commerce business, the tradesman's exemption does not offer an adequate structure.
Sole Proprietorship or Limited Company?
When deciding to start a company for Shopify, there are two main options: a sole proprietorship and a limited company. The right choice depends on your income level, your growth goals and your tolerance for risk.
How Much Capital Do You Need for a Limited Company?
The minimum capital for a limited company is 50,000 TL. Article 580 of the Turkish Commercial Code sets this amount as the threshold in force since 2024; the previous minimum was 10,000 TL. A sole proprietorship has no legal minimum capital requirement, so you can open your store with a capital commitment of zero. The 50,000 TL does not have to be paid in up front when the company is founded. Since Law No. 7099 abolished the 25 percent upfront payment requirement in 2018, the full committed capital can be paid into the company account within 24 months of the company's registration. For existing limited companies whose capital is still at the old 10,000 TL, the deadline is 31 December 2026; if the capital is not raised to 50,000 TL by that date, the company is deemed dissolved.
The Advantages of Starting with a Sole Proprietorship
Many people who are new to e-commerce start with a sole proprietorship. The main reasons are quick setup, low cost and operational flexibility.
- The setup process is usually completed within a few days
- There is far less bureaucracy than with a limited company
- Accounting is simpler
- Thanks to the progressive income tax structure, you pay less tax in periods when you earn less
- Being run by one person speeds up decision-making
When Should You Switch to a Limited Company?
As your business volume grows and operations become more complex, a limited company starts to make more sense.
A limited company is the better choice when you want to set up a partnership, take on investment, give the brand a more professional footing or protect your personal assets as part of risk management. In a sole proprietorship, all financial and legal liability lies directly with the business owner, whereas in a limited company liability is limited to the committed capital.
Sole Proprietorship vs. Limited Company
Starting your Shopify store as a sole proprietorship is a balanced way to begin, in terms of both cost and flexibility. As the business grows, you can switch to a limited company and build a more corporate structure. This switch matters not only for tax but also for brand trust and business relationships.
Tax Rules: Income Tax and VAT
Depending on your company type, the profit you make through Shopify is subject to either income tax or corporate tax. Which system works out better depends on your business model and income structure.
Income tax: It has a progressive structure; the more you earn, the more tax you pay. Sole proprietorships are subject to this system.
Corporate tax: It has a flat rate and is more predictable. Limited companies pay this tax.
VAT on Sales Within Turkey
VAT (KDV) is an amount you collect from the customer and pass on to the state; it is not your own income. When you sell within Turkey, you apply VAT at the rate that applies to your product. You declare the difference between the VAT you paid on purchases and the VAT you collected on sales.
E-commerce in particular involves a large number of transactions, so small errors grow over time. Keep your records in order and work with a certified public accountant.
VAT and Exports on Sales Abroad
When you sell from Turkey to customers abroad, the sale is generally treated as an export and is exempt from VAT. This is a significant advantage, but it comes with responsibilities:
- Document your exports correctly
- Manage shipping and customs processes
- Record your foreign currency income
- Research the tax rules of the countries you sell to
There is no threshold for sales from Turkey to the EU; VAT is due in the buyer's country from the very first sale. For shipments up to €150, VAT can be collected through IOSS (by appointing an intermediary in the EU); above that, it is paid at customs. In non-EU European countries such as Norway and Switzerland, registration is required once you exceed a turnover threshold. In the US, sales taxes vary from state to state. Selling internationally doesn't just mean winning new customers; it also means managing a more complex financial structure.
Among people who sell abroad, the belief that "there's no tax" is widespread. The tax obligation does not disappear; it simply takes a different form. This mistaken approach can lead to serious financial consequences later on.
E-Invoicing and Accounting Integration in Shopify
The Shopify platform does not offer an invoicing system that is valid in Turkey, and it does not file tax returns. You need solutions that work with the e-Fatura or e-Arşiv systems. If you want to get started quickly at a small scale, the Shopify Paraşüt integration passes your order and invoice data to the accounting side.
Shopify lets you define tax rates, calculate tax per order and run reports. But issuing invoices and filing returns are entirely up to you. Third-party invoicing apps or integration companies are used for this process.
Working with a certified public accountant is practically a must. Tax legislation changes constantly, and there are a great many details in practice.
The Most Common Mistakes When Starting a Company for Shopify
Looking at what we see most often in practice, a similar pattern emerges:
- Starting to sell without a company
- Receiving payments through personal accounts
- Not issuing invoices
- Calculating VAT incorrectly
- Assuming there is "no tax" on sales abroad
- Trying to manage everything without the support of a certified public accountant
These mistakes are invisible at first, but as income grows, the risks grow with it and fixing them becomes more and more expensive. Once your company details are settled, you can use our Distance Sales Agreement Generator to prepare your distance sales agreement and KVKK notice with that information.
Frequently Asked Questions
Do I have to start a company to use Shopify?
There is no company requirement for opening a Shopify account. However, once you start selling regularly and earning income in Turkey, you are carrying out a commercial activity, and setting up a company becomes unavoidable. Payment institutions and the banking system make it mandatory in practice.
Should I set up a sole proprietorship or a limited company?
A sole proprietorship is usually the better choice to start with: it is quick to set up, low cost and involves less accounting work. Switch to a limited company once your business volume grows and you need partners or investment.
Do I pay tax if I sell abroad on Shopify?
Sales from Turkey to customers abroad are generally treated as exports and are exempt from VAT. However, the tax rules of the country you sell to may apply. There is no threshold for sales to the EU; VAT is due in the buyer's country from the first sale and is collected through IOSS for shipments up to €150 and at customs above that. In non-EU European countries such as Norway and Switzerland, registration is required once you exceed a turnover threshold.
Does Shopify issue invoices?
No. Shopify does not offer an e-Fatura or e-archive invoicing system that is valid in Turkey. Issuing invoices is entirely your responsibility, and you need a separate invoicing app or integration for it.
Can I sell on Shopify under the tradesman's exemption?
Technically, it is possible at the start. However, because Shopify is built for growth, the exemption limits soon become too tight. For sales abroad, the exemption becomes useless in practice. A long-term business requires a company.
Does earning income through Shopify create a tax obligation?
Yes. Income you earn through Shopify is subject to income tax or corporate tax in Turkey, depending on your company type. Your tax liability begins the moment you start earning income.
Can I sell on Shopify by setting up a company abroad?
Yes, it is possible. However, your tax obligations in Turkey may continue in that case too. Setting up a company abroad requires a much more complex structure; be sure to assess it with an experienced certified public accountant.
Which payment institution should I use to accept payments on Shopify?
iyzico, PayTR and Craftgate are widely used in Turkey. You cannot integrate a bank POS directly: if you want to use your own bank POS agreement, you connect it through a payment orchestration platform such as Craftgate (or Lidio); iyzico and PayTR, on the other hand, don't connect your bank POS but offer their own virtual POS. Each has a different commission rate, setup process and feature set.
Conclusion
Shopify offers a strong platform for getting into e-commerce. But to use it sustainably in Turkey, forming a company, tax compliance and regular bookkeeping are essential. These are the elements most often overlooked at the start, and they turn into the most critical problems later on.
Putting your Shopify store on a solid legal and financial footing is as important as the technical setup. To plan your Shopify migration or a new store setup, get in touch with Nodus Works; we help you build the right structure from the start.
