Is Stripe Available in India? (Guide on How to Open)

If you’re an entrepreneur in India looking to expand your business globally, you may wonder if Stripe is available in India.

Stripe is a popular online payment processing platform that allows businesses to accept payments from customers worldwide. The good news is that Stripe is available in India, making it easier for Indian businesses to transact with customers in other countries.

Does Stripe Work In India?

If you’re wondering whether Stripe is available in India, then yes, Stripe is currently supported in India, along with 45 other countries worldwide.

To open a Stripe account in India, you must provide information based on your business structure, such as identification numbers, a website or app store link, a description of your business, and bank details. If you accept international payments, you may also need to provide an IEC code from DGFT and an RBI Transaction Purpose Code.

Stripe India accepts payments in Indian Rupees (INR) from your customers in India.

The pricing is simple, with integrated per-transaction pricing that means no setup fees, monthly fees, or fees for failed charges. Domestic debit card transactions have the Merchant Discount Rate (MDR) of 0.4% capped to ₹200.

However, it’s important to note that Stripe India has limited payment options compared to local Indian payment gateways that offer net banking, wallets, or EMIs. Popular payment methods like UPI are not available on Stripe.

Requirements for Stripe in India

Stripe supports both INR and non-INR presentment for customers located outside India, provided:

• The Stripe account must be a registered Indian business (sole proprietorship, limited liability partnership, or company.
• The Stripe business can’t be an individual.
• You must provide a valid Importer Exporter Code (IEC) if you sell physical goods.
• If you sell services, providing an IEC is optional unless:
  • you accept AMEX payments from international customers
  • you take any benefits under India’s Foreign Trade Policy
• The transaction is a maximum of 10,000 USD. This is the regulatory limit.

LLC Requirements To Open A Stripe Account In India For Your Business

There’s another method to set up a Stripe account that accepts USD – this is particularly great for businesses outside India and beyond. In this scenario, you’d have to form an LLC in the United States and get your EIN.

Here are a few benefits:

• Legal Presence: A U.S. LLC provides you with a legal presence in the United States, which is a prerequisite for opening a Stripe account that can handle USD transactions.
• Credibility: Having a U.S. business entity might enhance the credibility of your business with U.S. customers and partners.
• Separate Liability: An LLC offers limited liability protection, meaning your assets are generally protected from business liabilities.

1. A Business Formation In The U.S (LLC)

An LLC is a hybrid business model that combines the benefits of a sole proprietorship and a corporation. It provides the owners with limited liability protection, pass-through taxation, and flexibility in management.

Forming an LLC is necessary to create a Stripe account in India because Stripe requires a business entity to be registered in the United States.

Registering an LLC will receive an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This EIN is required to create a Stripe account.

To form an LLC, you will need to file articles of organization with the state where you want to register your LLC. You will also need to assign a registered agent to receive legal documents for your LLC. There are several options to set up an LLC, including doing it yourself, using an online service, or hiring an attorney.

2. Obtaining An Employer Identification Number (EIN) Or Tax ID

If you plan to use Stripe for your business in India, you must obtain an EIN or Tax ID. An EIN is a unique nine-digit number the IRS assigns to identify your business for tax purposes. It is like a Social Security number for your business.

An EIN is necessary for your LLC as it is required to open a business bank account, apply for loans, and pay taxes. It also helps to establish the legal identity of your business.

To get an EIN after forming your LLC, you can apply online through the IRS website or by mail.

A registered agent can also help with this process. Obtaining an EIN can benefit you with faster processing time, easier communication with the IRS, and the ability to apply for business credit.

3. U.S Business Address

You can use a mail forwarding service to obtain a U.S. business address. This service will provide you with a physical address in the U.S. that you can use as your business address. You can then use this address to register your business with Stripe.

It’s important to note that when using a mail forwarding service, you should choose a reputable provider to ensure your mail is handled securely and efficiently.

4. A U.S Phone Number

Having a U.S phone number is necessary because Stripe is primarily based in the United States. Therefore, they require a U.S phone number to verify your identity and ensure that you are a legitimate user.

You can easily obtain a U.S phone number using apps and services like Dingtone and Skype. These apps allow you to choose a U.S phone number and receive SMS messages on that number.

It is important to note that using a fake or invalid U.S phone number is not recommended. Stripe may detect this and suspend or terminate your account, which could result in a loss of funds or other negative consequences.

5. U.S Bank Account (To Be Linked To Stripe For Payouts)

To receive payouts from Stripe, you will need to link a U.S bank account to your Stripe account. This is because Stripe only supports payouts to U.S. bank accounts now.

There are a few different ways to obtain a U.S. bank account. One option is to use a service like Wise, which allows you to open a U.S. bank account remotely. Another option is Payoneer, which also offers a U.S. bank account option.

Lastly, you could consider using Mercury, a bank specializing in serving startups and small businesses.

When choosing a method to obtain a U.S. bank account, consider factors such as fees, ease of use, and customer support. You should also ensure that the service you choose is reputable and trustworthy.

What’s the Best State to Form Your LLC as a Foreigner in India?

While you can choose any state to register your LLC, some states offer unique advantages that may make them more appealing.

The three most popular states include New Mexico, Delaware, and Wyoming. Each state has its unique advantages for different types of companies.

Wyoming

Wyoming is a popular low-cost option, as it only costs around $150 to file an LLC and an annual report.

Additionally, Wyoming does not have taxes at the corporate level, but you will still need to pay federal taxes. If you are looking for a relatively low-cost and low-maintenance option, Wyoming could be a solid option.

Delaware

Delaware is a popular option if you think you will raise money from investors in the future. Nearly 80% of US public companies choose to incorporate in Delaware. The major downside is the higher cost of filing and maintaining the company.

New Mexico

New Mexico is another attractive option because the filing costs are low, and you do not have to file an annual report. This can be a great option for small businesses that want to save money on filing fees and annual reports.

Steps On How To Form Your India LLC & Open A Stripe Account

Here are the steps you need to follow to form your LLC and open a Stripe account.

Step 1. Sign up For Northwest Registered Agent

The first step is to sign up with Northwest Registered Agent, which will help you form your LLC and provide you with a registered agent, as the law requires.

To sign up for their services, go to their website at:

https://www.northwestregisteredagent.com/

Then click on the “LET’S GET YOU STARTED” button.

Step 2. Choose Your Business Entity and State

Once you click the button, you’ll be redirected to a page where you can choose your business entity and state. You can choose from various business entities, including LLCs, corporations, and partnerships.

You’ll also need to select the state where you want to form your LLC.

The state you choose and the processing time would determine the total amount.

Step 3. Enter Your New/Existing Details

After you’ve chosen your business entity and state, you’ll need to enter your new or existing details, including your company name, address, and other relevant information.

You can choose the physical and mailing addresses you want for the business.

Northwest Registered Agents offers the convenience of using their address as your business address, eliminating the need for a separate US address for your company.

Step 4. Enter The Management For Your LLC

Next, you’ll need to enter the management information for your LLC. This includes the names and addresses of your managers and their roles in the company.

Step 5. Fill in Your Contact Details

This is where you fill in your contact details, which will serve as your primary means of contact with Northwest. You can use your local/current details as a point of contact with Northwest.

Step 6. Setup Your Account with Northwest Registered Agent

After entering all your information, you must set up your account with Northwest Registered Agent using your email and preferred password.

This will allow you to access their services and complete the following steps to form your LLC.

Step 7. Get Your Business Identity (optional)

You can toggle this on to add the Northwest Business Identity option for your LLC.

It includes domain name registration, website hosting, business email address, and business phone, all free for 90 days.

Step 8. Getting Your Tax ID or EIN – optional

If you want your LLC’s tax ID (EIN), you can do so through Northwest Registered Agent. They will help you complete and submit the necessary forms to the IRS and create a viable Stripe account.

Step 9. Checkout/Payment (Congratulations!)

Once you’ve completed the previous steps, you can check and finalize your LLC formation. Enter your valid card information, then click Done!

Congratulations—you’ve formed your LLC and are ready to open a Stripe account!

Finally, Create Your Stripe Account (With Your EIN & LLC Information)

If you’ve made it to this point, congratulations!

You’re ready to create your Stripe account. In this section, we’ll review the basic requirements and step-by-step instructions for creating your account.

Basic Requirements

Before you start creating your Stripe account, make sure you have the following information on hand:

• Business name: The legal name of your business or LLC.
• Email address: You want to use it to manage your Stripe account.
• Government-issued ID: A valid government-issued ID such as a passport or driver’s license.
• Employer Identification Number (EIN): This is a unique nine-digit number the IRS assigns to identify your business for tax purposes. You can apply for one on the IRS website if you don’t have an EIN.

Creating a Stripe Account Step-by-Step

Once you have all the necessary information, follow these step-by-step instructions to create your Stripe account:

1. Go to the Stripe website/registration page (https://dashboard.stripe.com/register) and click the “Sign Up” button.
2. Fill out the registration form with your business name, email address, and password.
3. Verify your email address by clicking on the link sent to your inbox.
4. Provide your business information, including your EIN and government-issued ID.
5. Set up your account by choosing the features you want to use and connecting your bank account.
6. Test your integration in Stripe’s test environment before going live.

That’s it!

You’ve successfully created your Stripe account and are ready to start accepting payments. Keep in mind that Stripe may require additional information or documentation depending on your business type or location.

Why I Prefer Northwest Registered Agent For My LLC Formation?

If you’re looking for a reliable and affordable registered agent service for your LLC formation as an Indian business owner, Northwest Registered Agent is definitely worth considering.

As someone who has been using Northwest Registered Agent since 2020 to create my Florida LLC, I can confidently say that they offer some great features that make them stand out from the competition.

Firstly, Northwest Registered Agent offers a free one-year registered agent service when you hire them to form your LLC. This is a great value because other registered agent services usually charge over $1000 for this service.

Their service also includes a free operating agreement which is a crucial document for your LLC formation.

Another reason why I prefer Northwest Registered Agent is their transparent pricing model.

They don’t have any annoying upsells or recurring monthly fees as everything is optional. This means that you only pay for the services that you need. Furthermore, their pricing is very affordable, with a starting fee of just $39 to get started.

Northwest Registered Agent also allows you to use one of their local offices as your business address. This is a great feature because it can help you establish a physical presence in the state where you’re forming your LLC. They also keep your address off public record by default, which is a nice privacy feature.

Finally, Northwest Registered Agent offers a free domain, website, email, and business phone. This is a great value-add that can help you get your LLC up and running quickly and easily.

Frequently Asked Questions

How Do I Use Stripe In India?

To use Stripe in India, start by signing up on the Stripe website and providing your business details, including bank information for fund deposits.

You’ll need to verify your identity with documents like PAN and government-issued ID, and ensure your integration complies with RBI guidelines, such as two-factor authentication. Once your account is set up and activated, you can accept payments via your website or app, catering to both local and international customers.

How can I obtain an Employer Identification Number (EIN) as a Indian resident?

As an Indian resident, you can obtain an EIN by completing an SS-4 form and submitting it to the IRS. You will need to provide your personal information, including your name, address, and social security number. You will also need to provide information about your business, such as the name and address of your LLC.

How does Stripe compare to Razorpay for Indian users?

While Razorpay is a local payment processor, Stripe is an international payment processor. Stripe offers more features and integrations than Razorpay, but Razorpay is more affordable for small businesses. Ultimately, the choice between Stripe and Razorpay will depend on your specific needs and budget.

Are there any limitations to using Stripe Connect for Indian merchants?

Stripe Connect is available for Indian merchants, but there are some limitations. For example, Indian merchants cannot use Stripe Connect to accept payments in foreign currencies.

What do I need to set up a Stripe account from a non-supported country?

If you are from a non-supported country, you can still set up a Stripe account by forming an LLC in the United States and obtaining an EIN from the IRS. This will allow you to legally operate a business in the US and use Stripe as your payment processor.

Can I Get A U.S. based Address For My Business?

Yes, you can get a US-based address for your business through Northwest Registered Agent. This service provides a registered agent address in the United States, which you can use to form an LLC and obtain an EIN.