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How to set up an online business in the UK using Stripe

Profile picture of John Carpenter.

Chief of Staff

Last Updated: | 7 min read

We explain how to legally register a limited company online in the UK and set up a Stripe payment processing account to support your new internet business venture, even if you are a non-UK resident and Stripe is not supported in your country.

The process of registering a UK company can be done remotely (online), and it’s now possible for non-UK residents in unsupported countries to create a Stripe account, enabling online payment processing through a UK limited company.

Whilst setting up a new business during a global pandemic may seem reckless – there are gaps in the market that need to be filled and new opportunities have arisen from the crisis.

If this is something that you’ve been considering – and your market research shows that there is sufficient demand for your product or service – this may be the best time to take the plunge.

Step 1 – Incorporate a UK limited company

Limited company formation is one of the most affordable and efficient ways to set up a legal business in the UK. The process is so straightforward that it takes only a few minutes to complete an online application form if you register through a trusted UK company formation agent like 1st Formations.

We have created a Non-Residents Package at a cost of £164.99, which is ideal for non-UK residents who wish to set up a limited company in the UK. However, before purchasing your company formation package, you will need the following information at hand:

1. Company name

You must choose a unique name for your new company. This means that it cannot be the same as another company’s name, nor too similar to the name of any other company on the Companies House register.

GOV.UK provides helpful guidance on choosing a company name and the rules you need to follow.

When you have decided on a name, simply enter it into 1st Formations’ company name checker to confirm that it is available to register. If it is, you can start filling in your application.

2. Registered office address

This will be your new company’s official address, so it will be included on the public register of companies. Legal mail, filing reminders, and statutory notices from Companies House, HMRC, and other government bodies will be sent to your registered office.

If you use 1st Formations to set up your company, a prestigious Central London registered office is included within the recommended company formation packages mentioned in point 4 below.

3. Company director and shareholder

Private limited companies in the UK need a minimum of one shareholder and one director. Shareholders own the business and have the right to dividends from any profits made by the company. Directors are appointed by shareholders to manage the company on their behalf.

Whilst these are separate roles with different rights and responsibilities, the same person can be a shareholder and director, so you may register a company with only one individual (you), or you can set up the company with other business partners and investors.

For further reading, please have a look at our guide on information required to set up a limited company.

4. Choose your company formation package

Once you have the above information at hand, simply choose your preferred company formation package. The Non-Residents Package is designed for overseas customers and provides everything you will need to get started, including a business banking solution (see Step 2 below).

However, if the price of this package is over your budget, you may wish to consider the eSeller Package at £89.99 or the All-Inclusive Package which is on special offer at £149.99. Both of these company formation packages will provide the all-important registered office that you will need to set up a UK limited company.

5. Registering your company

Once you have completed your package purchase, we will submit your application to Companies House (the Registrar of Companies in the UK), which will take under 24 hours (subject to workload) to register your company.

Step 2 – Register a WorldFirst bank account

WorldFirst provides UK business bank accounts and sort codes to non-UK residents. A WorldFirst account enables non-UK residents to open over 10 local currency accounts with local bank details, and also allows you to get paid from over 100 marketplaces, including Amazon, Shopify and PayPal. This is an ideal solution for residents of countries that are not supported by Stripe.

At 1st Formations, we have partnered with WorldFirst to include a WorldFirst account referral with our exclusive Non-Residents Package. As soon as your company is approved by Companies House, we will send you a link to apply for your own WorldFirst account, and if your account is approved, you will receive your own UK account number and sort code shortly afterwards.

Step 3 – Set up a VPN

The next step is to set up a VPN, which will give you a valid IP address based in the UK. This will allow you to process transactions from unsupported countries using your UK Stripe account.

We would recommend IPBurger, who will provide an inexpensive Fresh IP Address for the UK for less than £8.00 per month.

Step 4 – Set up your website

In order to set up an active Stripe account, you must have a working business website that showcases the products and/or services your company sells.

This allows Stripe to confirm exactly what you are accepting money for, verify your business information, and complete your account activation.

Step 5 – Create a Stripe account

To be able to process online transactions, you will need a payment gateway and a payment processor. Stripe is one of the most convenient and popular e-commerce solutions because it combines payment gateway functionality and third-party payment processing.

Businesses of every size use Stripe to accept payments from customers. With the highest security standards and the ability to handle more than 135 different currencies, Stripe is the premier choice for companies that sell online and across international borders. It also supports a huge range of universal and local payment types.

To create a Stripe account, you will need to provide your name, email address, and password. At this stage, you can interact with your account in test mode and access Stripe’s helpful guides.

Next, you will need to activate your Stripe account. To do this, you must verify your email address and provide the following information:

  • Country where you are based
  • Business website address
  • Industry in which you operate
  • Description of what you sell, to whom you sell, and when you charge your customers
  • Type of business (i.e. a limited company)
  • Company registration number
  • VAT number (if applicable)
  • Registered business address (i.e. your company’s registered office address)
  • Your legal name
  • Telephone number
  • Date of birth
  • Home address
  • Bank account details (enter your WorldFirst details)

After you have submitted these details, Stripe will ask you to upload documents to confirm your address and identity. This required verification information is in line with international “Know Your Customer” (KYC) regulations.

When your account has been verified, you can start selling online and take payments from customers all over the world.

Why would I set up an e-commerce business in the UK?

Online shopping, particularly in the UK and across Europe, has gained significant traction in recent years as a result of our increasingly interconnected world, offering convenience and greater choice to consumers around the globe.

In recent months, the challenges presented by COVID-19 have accelerated the growth of e-commerce by years, resulting in unprecedented demand that existing retailers are struggling to meet. Consequently, this presents many opportunities for new online businesses.

Research shows that COVID-19 will have a lasting impact on shopping behaviour. More than 50% of consumers state that, given the potential risks, they do not plan to return to physical stores and busy public places for quite some time, even as lockdown measures are eased.

There has also been a dramatic shift in the types of products that shoppers are buying, with priority initially placed on essential items like food, household staples, healthcare products, cleaning and hygiene supplies, pet products, and baby goods. As the weeks have progressed, there’s now increased demand for certain non-essential items, such as children’s toys and games, luxury homewares, garden products, and entertainment and leisure goods.

YouTube Video – Stripe UK

Adil Maf, an e-commerce payment processing expert from Brazil, has published a really helpful video on his YouTube channel titled Stripe UK for non UK residents. He demonstrates how to set up a UK online business with payment processing using Stripe, and how to avoid some of the most common issues faced by non-UK residents when setting up a Stripe account from a non-supported country.

Adil recommends using 1st Formations to form the UK limited company. He also walks you through the process of choosing a VPN. Why don’t you check it out!

About The Author

Profile picture of John Carpenter.

John is Chief of Staff at 1st Formations and statutory director of the BSQ Group, responsible for assisting the CEO, HR, recruitment and content proofreading. He has an MSc in Digital Marketing Leadership from the University of Aberdeen and certificates in Anti Money Laundering, and Company Secretarial Practice and Share Registration Practice. John was previously operations director at a Mayfair-based law firm.

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Comments (48)

sinan

September 11, 2023 at 11:06 am

Hello there
made a company with your services and after that i got wise account and stripe account
now for the moment my problem is
that stripe want proof of address
and as my company is locating in the UK
the owner is locating in Istanbul/turkey
i provided the address proof in istanbul but they didn’t accept it
because the company address is in uk
what can i do
thanks

    1st Formations

    September 15, 2023 at 12:38 pm

    Thank you for your kind enquiry, Sinan.

    To better answer your query, can you advise if Stripe provided you with a specific reason why your proof of address was rejected? If so, what was it – what was the exact wording?

    We look forward to hearing from you.

    Kind regards,
    The 1st Formations Team

faysal

May 30, 2023 at 6:40 pm

Hello dear
I reside in Turkey, in case I purchased a package *Non-Residents Package*
This company allows me to use from Turkey without residing in Britain
My question is, do I have the right to open a Stripe account from my original place of residence in Turkey using this company without using a VPN?
What is the need for me to prove that I reside in the UK and my company type is *Non-Residents*?

In the event that we have to use a VPN, can I write my real address, for example in Turkey in my case?

    1st Formations

    May 31, 2023 at 7:59 am

    Thank you for your kind enquiry, Faysal.

    We would recommend asking Stripe whether they accept Turkey as a country of residence in the first instance, and then proceeding with a VPN or without based on their response. We are unable to advise in relation to evading Stripe’s anti-money laundering procedures.

    For more assistance, please email [email protected] and we will be happy to assist.

    Kind regards,
    The 1st Formations Team

Volodymyr

May 4, 2023 at 9:46 pm

Hello!) I just want to clarify.
1. Can I use Payoneer over Wise and if yes what package should I use as a non resident for that?
2. Does online banking is okay for reporting and accounting?
3. Who should deal with reporting and accounting?

Thank you for the answer!

    1st Formations

    May 5, 2023 at 2:21 pm

    Thanks for your questions, Volodymyr.

    In answer to your questions:

    1. You can use Payoneer over Wise; however, as a non-resident we are only able to offer you a referral to Wise if you purchase one of our packages. We would recommend you look at our Non-Residents Package which is tailored especially for non-UK residents. You can find our Non-Residents Package here: https://www.1stformations.co.uk/package/non-residents/

    2. A number of banks provide accounting propositions as well as reporting; however, we are unclear what banking solutions do this for non-UK residents.

    3. We would recommend speaking to an accountant for more information.

    We would recommend contacting our Customer Service Team on +44 20 3897 2233, by live chat at https://www.1stformations.co.uk/, or by email at [email protected] – as we will be happy to help you.

    Kind regards,
    The 1st Formations Team

Denys

September 29, 2022 at 9:27 pm

Greetings!

I am a resident in Ukraine, and currently reside here.
I’m considering your LTD formation services to set up Stripe as a payment gateway for my eCommerce store.

1. I have a little question regarding this blog article:
https://www.1stformations.co.uk/blog/stripe-uk-how-to-set-up-an-online-business-in-the-uk/

Specifically, “Step 2 – Register a Wise bank account” section.
Will Stripe accept Wise during the account setup phase?

I have this concern because of the requirements Stripe states in this article: https://support.stripe.com/questions/requirements-to-open-a-stripe-account-in-another-country

This one:
“A physical bank account in that country (cannot be a virtual bank account), denominated in a supported transfer currency for that country.”

Isn’t Wise considered a virtual bank account?

2. Also, why do you mention the need to use VPN? Isn’t it a legal way to go about the Stripe account creation if we need to fake our location?
3. If I use a UK IP address, would Stripe accept my Ukrainian proof of address documents to activate the account?

Thanks

    1st Formations

    September 30, 2022 at 9:23 am

    Thank you for your kind enquiry, Denys.

    In answer to your questions:

    1. Wise have a partnership with Stripe, and you can open Stripe using a Wise Business Account. See here for more information: https://wise.com/us/blog/how-to-change-bank-account-on-stripe
    2. With regards to the VPN, we are unable to advise on its legality, unfortunately.
    3. With regards to your Ukrainian proof of address documents, whilst we are unable to determine precisely what Stripe categorises Ukrainian residences as in terms of money laundering risk, we think it is likely they would accept Ukraine residents and therefore Ukrainian proof of address at this time.

    We trust this information is of use to you.

    Kind regards,
    The 1st Formations Team

Munzar

September 11, 2022 at 11:44 am

Hello there,
I would like to open a company as a non-resident to have a legal and registered company for my business activity.
My question, if my website is for drop shipping or affiliate program, is that supported?

And if i need this company to start my business how can i do so if it is mentioned that in order to set up an active Stripe account, you must have a working business website that showcases the products and/or services your company sells?
Thank you.

    1st Formations

    September 12, 2022 at 9:59 am

    Thank you for your kind enquiry, Munzar.

    It is a requirement of obtaining a Stripe account that you have a working business website. You are able to have a working business website prior to registering a limited company, as a limited company is not a requirement of building a business website.

    There are simple website builders on the internet, such as Wix.com and Squarespace, which will enable you to create a modern looking website for a small amount of money and quickly. You could register your limited company and then purchase a package from one of these companies to build your website, thereby protecting your company name, and then when your website is ready, apply for a Stripe acount.

    We trust this information is of use to you.

    Kind regards,
    The 1st Formations Team

Viha

April 6, 2022 at 4:09 pm

Hi.. Should I use residential proxy or fresh IP to create stripe account? IPBurger suggested me to use residential proxy to create the account. And also they provide rotating IP for residential proxy.

    1st Formations

    April 8, 2022 at 10:03 am

    Thank you for your kind question, Viha.

    Unfortunately we are not experts on IP addresses and Virtual Private Networks, so we would recommend you take the advice of IPBurger who have more experience in this area.

    We are sorry we are unable to assist further.

    Best regards,
    The 1st Formations Team

Faisal

August 19, 2021 at 9:11 am

I am a Non-UK resident and would like to have a stripe account.

Which address service do I really need for my case: Registered Office Service, Service Address, or Business Address Service? What are the differences between the three?

Regarding VAT, it is optional with Stripe when I fill the form. Will I need it in the future?

    Graeme Donnelly

    August 22, 2021 at 1:12 pm

    Hi Faisal

    Thank you for your kind questions.

    With regards to non-resident company formation, we would advise you to choose the Non Residents Package which includes all 3 address services at greatly discounted prices.

    To form a company in the UK, you need a registered office address in the UK. This address service is for official government use only, by limited companies, and so it can only be used to receive government mail. The business address service is for non-official use and so if you want to receive normal business mail to our UK address from business partners such as Stripe, etc. we would advise you need this address also.

    The only address you do not need to purchase is the Service Address which is for company officers to use for official government use. The service address does not need to be in the UK. So you can use your own address in your home country for this purpose. However, due to all 3 address services being included in the Non Residents Package at a discount, I would advise purchasing this package rather than choosing a cheaper one and adding the registered office and business address. For further information on the difference between our address services, please read more here.

    With regards your VAT registration question, this all depends on your specific circumstances and so it is something I cannot comment on; however. I would advise you read our blog on the topic: The pros and cons of voluntary VAT registration.

    Kind regards,
    The 1st Formations Team

Faisal

August 16, 2021 at 12:08 pm

Does the address contain a PO Box number?

    Graeme Donnelly

    August 16, 2021 at 4:37 pm

    Hi Faisal

    Thank you for your question. The address we provide our customers does not include a PO Box number. It is the full postal address of our London-based location: 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ.

    If you have any other questions, please do not hesitate to ask.

    Kind regards,
    The 1st Formations Team

      Faisal

      August 19, 2021 at 8:57 am

      I have a personal Wise account, and a PayPal Business account in Saudi Arabia.
      Will I be able to open new Wise and PayPal Business accounts in UK?

        Graeme Donnelly

        August 22, 2021 at 12:53 pm

        Hi Faisal

        Thank you for your latest comment. As stated previously we find it difficult to comment on individual cases; however, we do know that Saudi Arabia is a supported country for Wise – so your Wise Business Account should hopefully not be a problem. With regards PayPal we have no affiliation with this business so we are unable to assist. I would advise contacting PayPal directly.

        Kind regards,
        The 1st Formations Team

Allaith Asous

June 24, 2021 at 9:39 pm

Hello is there a guarantee to open Stripe account and PayPal successfully after registration of non-uk residence company bundle? and regarding transfer wise to Turkey is that working? do you have any info regarding dual tax agreement between the two countries?

    1st Formations

    June 25, 2021 at 9:13 am

    Thank you for your kind enquiry, Allaith.

    Unfortunately there is no guarantee that a Stripe account or Paypal account will be opened once your company has been formed – Stripe and Paypal operate their own anti-money laundering and risk profiles and we do not have control of these.

    With regards to Wise (formerly known as TransferWise), we understand they are currently operating with residents of Turkey.

    With regards to a dual tax treaty between Turkey and the UK, there is currently a tax treaty covering Corporation Tax, Income Tax and Capital Gains Tax. More information on this subject can be found here: https://www.gov.uk/government/publications/turkey-tax-treaties

    Should you require any further assistance, please do not hesitate to leave another comment.

    Regards,
    The 1st Formations Team

Paul

February 24, 2021 at 4:05 pm

We have a stripe payment method on our U.K. business website. We are U.K. residents. Do you have a bank account service that will enable us to take overseas payments. These payments will come from China ME and asia

    John Carpenter

    February 26, 2021 at 8:47 am

    Thank you for your kind enquiry, Paul.

    We can provide you with a referral to either TransferWise or Payoneer, both of which can provide you with a bank account service specialised in receiving overseas payments.

    Please contact our team on 020 3897 2233 for more information.

Sandra A.

January 14, 2021 at 3:43 am

As a non-resident, will I be able to apply for a UK Stripe account if I created a LLP (instead of LTD)? In order to avoid paying corporation tax since I’ll already be paying taxes in my country.

    John Carpenter

    January 14, 2021 at 11:39 am

    Thank you for your kind enquiry, Sandra. Stripe do accept LLPs, so you should be able to open a Stripe account if your company is a LLP in the UK.

    I trust this information is of use to you.

    Regards,
    John

aj

December 21, 2020 at 11:21 am

hey, can we accept dollars with this method?

    John Carpenter

    December 22, 2020 at 8:28 am

    Thank you for your kind enquiry, AJ.

    Yes, this method will enable you to accept US dollar payments using Stripe.

    I trust this information is of use to you.

    Regards,
    John

Mohamed masky

December 1, 2020 at 1:50 pm

hello please i want to create company for create sripe and stripe need just number company and vat and adresse
but i dont know what package i need
Privacy Package or Professional Package

    John Carpenter

    December 2, 2020 at 8:25 am

    Thank you for your kind enquiry, Mohamed.

    If you are a non-resident and you require a limited company, address services as you do not possess your own UK address to use, and VAT Registration, our Prestige Package, All Inclusive Package and Non-Residents Package all include these services at discounted prices.

    You can find these packages here: https://www.1stformations.co.uk/compare-packages/

    Please give us a call on +44 20 8397 2233, or send us a message on livechat for assistance – we will be happy to take your order and assist you over the telephone if you wish.

    Kind regards,
    John

AM

October 21, 2020 at 12:57 pm

thanks for this, but here’s an obvious question, why do we need a vpn if we are personal giving our identity and home address with the company information to stripe?

    John Carpenter

    October 22, 2020 at 9:32 am

    Thank you for your question.

    Stripe requires the residential address of the company owner(s) for anti-money laundering purposes. However, this differs from the location where the company may operate from – from which you can use a VPN.

    I trust this information is of use.

    Kind regards,
    1st Formations

Timothy Moss

September 14, 2020 at 3:16 pm

Interesting Points! Thank you for your insights!

    John Carpenter

    September 15, 2020 at 8:13 am

    We’re glad you found our article insightful, Timothy.

    Kind regards,
    John

mari

August 27, 2020 at 12:00 pm

Hello
if i give my actual residential address which is outside the UK can i still get approved by stripe?

    John Carpenter

    August 28, 2020 at 8:21 am

    Hi Mari,

    Thank you for your query. Stripe do accept accounts for residents which are outside of the UK; however, this is dependant on which country you reside in.

    I trust this information is of use to you.

    Kind regards,
    John

      Jan

      October 21, 2020 at 3:18 am

      please clarify, you mean w submit our actual home address(where stripe does not operate and accept accounts from and also not on the restricted list also)

        John Carpenter

        October 21, 2020 at 8:53 am

        Thank you for your enquiry, Jan. Yes, you will need to submit your actual home address to stripe to pass their customer verification process for anti-money laundering purposes.

        Kind regards,
        John

          Eric

          October 21, 2020 at 12:51 pm

          thank you for these infos, can you please about the type of website needed to open a stripe account? can you show samples

          John Carpenter

          October 22, 2020 at 9:01 am

          Thank you for your enquiry, Eric.

          For more information regarding the specifications on websites which are compatible with Stripe, please see here: https://stripe.com/docs/checklist/website

          I hope this information is of use to you.

          Kind regards,
          John

alie

August 23, 2020 at 4:22 am

hi! thanks for your information.
You’ve mentioned registering a UK stripe account, what home address should be provided is it UK business registered address or the actual home address and how do we provide proof of address?

    John Carpenter

    August 24, 2020 at 8:20 am

    Thank you for your kind enquiry, Alie.

    When Stripe ask for your home address, they are referring to the actual residential address you live at. Regarding proof of address, Stripe will inform you of what would be acceptable as proof; however, this is usually a utility bill dated within the last 3 months.

    I hope this information is of use to you.

    Regards,
    John

      Isuru Udara

      September 8, 2021 at 10:33 am

      If we are not in stripe unsupported country, do they still provide the service?

        1st Formations

        September 9, 2021 at 9:34 am

        Thank you for your kind enquiry, Isuru.

        In general terms, Stripe will not provide a service if you are in an unsupported country. However, you are able to use a VPN to match the country of your company’s location, which can circumnavigate this restriction.

        We trust this information is of use to you.

        Regards,
        The 1st Formations Team

          Darrien

          February 19, 2022 at 11:00 pm

          This is where it gets tricky and rather confusing. For those of us who are non-residents, setting up companies in the UK in order to be able to have a legitimate business registration for Stripe payments, where do we stand when Stripe asks for proof of address? We give them our home address in Stripe non-supported country, but all our UK business information, is it usual for them to accept or cancel based on this?

          1st Formations

          February 21, 2022 at 1:53 pm

          Thanks for taking the time to read this blog post, we hope it was useful.

          When you are asked for proof of address, you do need to provide the necessary documentation for your actual address. For example, if using any of our address services, you could not use our address.

          We recommend contacting Stripe directly if you are having problems.

          We hope that helps.

          Regards,
          The 1st Formations Team

Favour Rabbi

July 24, 2020 at 11:05 pm

Great content, I’d like to ask;
Can I avail for the all inclusive package (69.99)even though I’m a non UK resident

    John Carpenter

    July 27, 2020 at 8:35 am

    Thank you for your kind enquiry,

    Yes, our All Inclusive Package for £69.99 +VAT is suitable for Non-UK residents, as it contains all of our address services.

    Should you require any further assistance, please do not hesitate to give us a call on +44 20 3897 2233, or send us a message via live chat.

    Kind regards,
    John

Mehdi hakmoune

June 15, 2020 at 7:20 pm

Great article about stripe for no-residnece but please i have just one question before buying my pckage from 1stformtions, please how can i get a UK number to open a stripe account ??

Thank you

    John Carpenter

    June 16, 2020 at 8:37 am

    Thank you for your message, Mehdi.

    With regards ‘UK number’, can you please clarify what you mean? If you mean a UK mobile phone number, we would recommend you contact a UK mobile network provider. If you mean a company registration number, you will need to form a company, at which time you will be provided with your company registration number once the company is formed.

    I trust the above information is of use to you.

    Kind regards,
    John