How to Open a Stripe Account as a UK Resident: An In-depth Guide
Either you are just planning to set up your business within the UK, or you are an already established business, subscribing to a payment and transaction platform that allows you to easily receive payment from customers globally is key to your business success.
One such payment platform is Stripe. Stripe is a popular, efficient and highly secured payment gateway used by many business owners throughout the world.
It doesn’t just allow you to receive and send payments, but it also helps you manage your business transactions online. In this guide, we will explain how you can open a Stripe account as a UK resident.
What is Stripe?
Stripe is a popular online payment platform that allows businesses of various sizes to receive debit and credit card payments, subscriptions and other types of online business payments. Launched in 2009, Stripe allows businesses to receive payments from customers through a mobile website, apps and in person.
Whether your business is a small startup or one with more complex financial transactions, Stripe payment platforms have several features that suit all. The platform generally operates with multiple currencies making it easier for you to reach more international customers. Beyond that, Stripe is a highly secured payment platform making it safe for you to deal with your customers at all times.
Steps to Open Stripe as a UK Resident
As residents of the UK, opening a Stripe account is quite straightforward since the country is among the nations Stripe supports. However, for you to set up a Stripe account for your business, you must ensure that your business is registered and incorporated within the UK as you will need these incorporation details while creating a Stripe account for your business.
So the first step to take before creating a Stripe account is to register your business with the UK Companies House if you haven't done so before and then set up a Company website if you don’t have one. Here are the 4 basic Steps you should take note of when opening a Stripe account.
- Register your Company with the Companies House
- Open a business bank Account
- Create your business website
- Open a Stripe Account
1. Registering your Business/Company Incorporation
To incorporate your business as a UK resident, you will need to provide the following details to Companies House as part of your incorporation application. This information is vital and must be provided before you can successfully submit your application.
- Company name
When incorporating your business, you will need a company name. This company name must be a unique and professional one. It must also meet up with the standards of the Companies House. As such the name must not have been used by another company. It must not be similar to another company’s name. It must not contain words that are sensitive or offensive.
- Registered Office Address
You will also be required to provide a registered office address. This is like an official address of your company where mail, correspondence and other documents will be received. A registered address is usually a physical address that is situated in the location where your business is incorporated and it must be accessible every working hour of the day.
- Company Shareholder and Director
Apart from providing the company name and the registered office address, you will be required to provide the details of the shareholders and directors of your company. The shareholders are regarded as the owners of the business and they have the right to appoint a director who will ensure the smooth running of daily business activities. A shareholder can also be a director of the company, meaning he or she could take up the duties of both.
You will be required to provide information like name, date of birth, nationality, home address, service address of the shareholders and directors etc. when filing for your incorporation application.
Once you have all of this information handy, you can begin to fill out the incorporation form with the Companies House. You will achieve this by visiting the Companies House website, completing the required form and submitting your application. Review of incorporation application takes a few hours after which you are notified and issued a Certificate of Incorporation.
2. Open a business bank Account
Now that you have incorporated your business and have your incorporation details ready, you should proceed to open a business bank account. This is quite straightforward and can be done with any banking platform that offers business banking opportunities within the UK.
3. Create your Business Website
A business website is needed when you are creating a Stripe account. As such you need to get a functional website that advertises your products and services before you can open a stripe account.
The website serves as a way for Stripe to confirm what your business does and the exact reason for which you are accepting payment. It also helps Stripe to activate your account and validate your business information. Once you have a website, you can proceed to create your Stripe account.
4. Open a Stripe Account
Once you have completed the other steps above, you will visit the Stripe website to create an account with them. You will need your name, email address and password to do that. Once you are on the website, click on the Start button to begin your account creation.
After that, you will be required to activate your Stripe account. Thus, you are expected to provide some information to do that. This information includes
- Country of residence
- Website address of your business
- Industry
- Description of your product/services and who your customers are
- Business legal structure e.g. limited company
- Company unique registration number
- Registered office address
- Date of Birth
- Home address
- Business bank Account details
After you have provided the details, you will be required to do a two-step verification for maximum account security. You will also be required to upload documents to your account to confirm your identity and address.
Account verification could take up to 24 hours or more. Once your account has been verified, you’ll be sent a notice indicating that your Stripe account has been verified and approved. With that, you can add Stripe as a payment gateway on your website and you can receive payments for goods and services from customers across the globe through it.
Advantages of Using Stripe
Having a Stripe account for your business lets you receive payments across several countries of the world. You can also receive payment in a number of ways and keep track of all financial operations within your business. With that being said, you should understand the advantages of having a Stripe account.
1. Payment Options
With Stripe, your customers are allowed to select a suitable payment option. This allows you to reach and offer your goods or services to a wider range of audience. Stripe allows international payment through debits and credit cards and also enables payments with digital banks or wallets. Apart from that, Stripe also allows you to receive payments through your mobile app or website. All of these aid in effective payments and promote the smooth running of your business's financial transactions.
2. Easy to Use and Set up
It is quite easy to set up and start using the Stripe payment gateway. This makes it easier for the user to easily subscribe to the platform. Apart from that, customers could easily send payment through the platform without having to go through a manual.
Stripe also has provisions for some types of developer tools and APIs. This can be used in customizing your website, although you may need to consult a developer to be able to use this feature.
3. Utmost Security
Stripe remains one of the best payment gateways that gives the utmost protection and security to customers. With it, your card payment options are secured with strong Stripe card data security measures. As such when customers make payments with their credit cards, they do not have to worry about security issues. Apart from that there is the use of Stripe Radar which uses Artificial intelligence to detect any fraudulent activities on the Stripe platform.
4. Aids in Financial Reporting
Using Stripe makes it easier for you to keep track of your financial transactions. With it, you have firsthand access to the transfers, fees and refunds that occurred within your business within a given period. All of these help you gain insight into your business accounting. Apart from that, Stripe helps provide an analysis of data which enables you to create financial reports for your business.
5. Aids in Subscription Set-up
With Stripe, you are allowed to set up subscriptions for your customers. This directly allows you to charge for your services on a daily or weekly basis. You can also include the prices of each subscription in your dashboard so that customers can have a view of it.
6. Great Customer Support
Stripe payment gateways offer outstanding customer support. You have access to 24/7 customer service support and you can easily get through to them through live chats, phone calls and active communities. With seamless support gotten as when needed, you won’t have to bother about payment issues.
How Do I Transfer Money From my Stripe Account to my business bank account?
Once you've connected your business bank account to your Stripe account, Stripe automatically transfers the funds available into your business bank account based on the payout schedule you’ve set.
You can set your Stripe Payout schedule to daily, weekly or monthly payments as you desire. Alternatively, you can decide to initiate the Payout manually anytime you want. Once you request a payout, the funds are transferred to your business bank account and it could take 2 or more days for you to receive the payment.
To manage your Stripe account payout, follow the steps below:
- Log into your Stripe account
- Check out the payouts menu on the left-hand side of your Stripe dashboard.
- From there you will find the list of the past and incoming payouts.
- You will be able to view the details of the payout that has been done such as the amount, payment status and method etc.
- You will also be able to change and set your payout schedule as you wish. To do that, look out for Settings in the left-hand menu.
- From settings, click on bank accounts and scheduling. You can then adjust your payment settings to the time interval you want and save.
- Once you make these changes, your funds will be processed based on the time schedule you set either daily, monthly etc.
Frequently Asked Questions
Do I need a website to open a Stripe Account?
Yes, you will need a functional website before you can open a Stripe account. This is to allow Stripe to understand the kind of product or services you render and to verify your information as appropriate.
Is it easy to open a Stripe account?
Yes, it is quite easy to open a Stripe account. You can do this online by visiting the Stripe website. You will need some basic personal information and some information about your business. Once you are done opening it, you can start receiving payments through your Stripe dashboard.
Is Stripe Safe to Use
Yes, Stripe is a safe and reliable payment platform used by many business owners throughout the globe. The platform meets the requirements of the Data Security Standards. This helps ensure that all cards used on the platform are secured and prevented from fraudulent acts.
Can I send receipts on Stripe?
Yes, you can send receipts to customers on Stripe. You can generate a digital receipt that will be sent to your email. You could forward these digital receipts to your customers or have a printout of them. From your Stripe dashboard, you will be able to access the receipt history section and you can locate the needed receipt from there.
Conclusion
As a business enthusiast residing within the UK, creating a Stripe account for your business is a perfect solution for your business financial transactions. With it, you don't have to go through the hurdle of receiving payment and carrying out financial transactions across various nations. If you have any question or need help to set up a stripe account as a UK resident, kindly contact one of our Incorpuk experts today.