E-commerce is a rapidly growing and developing sector today and is an activity that many people can do starting from home or small-scale businesses. However, the obligation to establish a company for e-commerce is an important issue that business owners should consider. Additionally, it should not be forgotten that establishing a company brings with it a number of legal obligations.
IS IT NECESSARY TO ESTABLISH A COMPANY FOR E-COMMERCE?
Income obtained from e-commerce activities must be taxed. Therefore, individuals engaged in e-commerce business must establish a company in order to be subject to commercial income provisions and become taxpayers according to income tax laws. For taxation purposes, a commercial structure, that is, a company, is needed.
Additionally, establishing a company for e-commerce provides the legal status of the business. This ensures that the business is on a legal basis and that commercial activities are carried out in accordance with the law. For customers, company status gives credibility and reputation to the business. It also helps the business gain a corporate image and create a more solid foundation for long-term success.
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WHICH TYPE OF COMPANY IS MOST SUITABLE FOR E-COMMERCE?
Certain criteria should be taken into account when deciding which type of company should be chosen for an e-commerce business. Business owners often evaluate company types based on their business's size, income level, business objectives, and legal regulations:
- Sole Proprietorship:
- Small Scale and Low Income: If the e-commerce business is small-scale and low-income, it may make sense to establish a sole proprietorship to benefit from tax advantages.
- No Distinction Between Personal Assets and Business Assets: However, in this case, there is no distinction between the business owner's personal assets and the business's assets, and the business owner is not personally protected against business risks.
- Limited Company (Ltd.):
- Growing Business and Increasing Income Level: If the size and income level of the e-commerce business is increasing, it may be more appropriate to establish a limited company.
- Separation of Commercial Risks from Personal Assets: A limited company can protect the business owner personally by separating the commercial risks of the business from the business owner's personal assets.
- Joint Stock Company (A.Ş.):
- Large-Scale and International Activity: If the e-commerce business operates on a large scale and internationally or is considering going public, it may make sense to establish a joint stock company.
- Corporate Image and International Business Relations: A joint stock company is a type of trading company whose capital is divided into shares and represented by shares. This type of company can provide advantages in terms of corporate image and international business relations.
Which type of company to choose depends on the business owner's specific needs, business goals, and current circumstances. Therefore, these criteria should be taken into account to determine the most suitable type of company and commercial lawyer support should be received.
THINGS TO CONSIDER WHEN DETERMINING THE COMPANY TYPEDeciding which type of company is best suited for eCommerce is a process in which the business owner must consider certain factors. These factors may include:
- Income Level and Business Volume: The current revenue level and business volume of the business owner's e-commerce business is an important factor in determining which type of company is best suited. While a sole proprietorship may be suitable for small-scale businesses, a limited or joint stock company may be more suitable for growing businesses.
- Future Plans: The business owner's plans for the future of the business should also be taken into consideration. For a business with growth potential, limited or joint stock company types that offer wider opportunities may be preferred.
- Business Risks: If the business owner does not want to associate his personal assets with the business, he can consider the option of establishing a limited or joint stock company. These types of companies can provide a better way to protect personal assets from business risks.
- Legal regulations: Legal regulations that apply to e-commerce businesses should also be taken into account. In some cases, a particular type of company may better meet legal requirements or provide tax advantages.
WHERE CAN I GET PERMISSION TO ESTABLISH AN E-COMMERCE COMPANY?
The places where permission is required to establish an e-commerce company are no different from general company establishment. However, since e-commerce companies are simpler companies by nature, their bureaucratic processes generally take less time. The first step to open a business is to apply to the tax office. It is necessary to apply to the chamber of commerce or profession for sole proprietorships, and to the chamber of commerce for capital companies.
In addition, depending on which e-commerce platform the services will be offered, you must register to the relevant platform. During this registration process, documents such as the company's trade registry certificate, signature circular and articles of association may be required to be submitted. Platforms often request these documents to verify that businesses are legally established and operating.
Source: cbhukuk.com