Is Stripe Available in Nigeria? (How to Open an Account)

If you’re a Nigerian business owner looking to expand your global reach, you may wonder if Stripe is available in Nigeria.

The short answer is no; Stripe is not currently available in Nigeria. However, there are workarounds that Nigerian merchants can use to access Stripe’s services, such as incorporating a company in a country where Stripe is available or obtaining a US bank account.

Stripe is currently supported in 46 countries, with more to come.

Once Stripe is supported in your country, you can sell to customers worldwide. While Stripe acquired Paystack in 2020 to serve the African market, direct access to Stripe is still limited in Nigeria.

In this article, we’ll explore the options available to Nigerian merchants who want to use Stripe’s services and the steps they need to take to open a Stripe account.

Does Stripe Work In Nigeria?

First, it’s important to note that Stripe does not currently support Nigeria directly. However, you can still use Stripe with a functional and verified account.

This means that if you’re a Nigerian business owner with an established business entity in another country where Stripe is supported, you can use Stripe to accept payments from customers worldwide.

It’s also worth noting that while Stripe isn’t currently available in Nigeria, the company has expressed interest in expanding its services to the region. In fact, Stripe has made it part of its mission to expand access to global payments, and the company has been actively working to expand its geographic reach in recent years.

As part of this effort, Stripe has been growing its presence in Africa and expanding its services to several countries.

While Nigeria isn’t currently on the list of supported countries, this could change in the future as Stripe continues to expand its global footprint.

Stripe account can be opened from Nigeria by following these steps:

1. Create/form an LLC in the United States (use Northwest)
2. Visit the Stripe website and create an account.
3. Enter your business information, including your name, address, and phone number.
4. Provide your EIN (with the help of Northwest)
5. Provide your tax ID and government-issued ID.
6. Verify your email address and phone number.
7. Add a bank account
8. Start accepting payments.

Requirements To Open A Stripe Account In Nigeria For Your Business

To open a Stripe account in Nigeria, you must meet several requirements. These requirements include:

Requirements	Where to Get
Business Formation/LLC	Through a registered agent
Employer Identification Number (EIN) or Tax ID	Through the IRS website
U.S Business Address	Through a virtual mailbox service
U.S Phone Number	Through a virtual phone service
U.S Bank Account (To Be Linked To Stripe For Payouts)	Use Wise or Mercury

Once you have met these requirements, you can open a Stripe account in the U.S. or the U.K. and link it to your Nigerian business. This will allow you to accept online payments from customers worldwide.

Let’s delve in further.

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

Stripe requires a U.S. business entity to sign up for their service. One of the most popular business entities for small businesses is the Limited Liability Company (LLC).

An LLC is a hybrid business structure that combines a partnership’s flexibility with a corporation’s liability protection. One of the main benefits of an LLC is that it provides personal liability protection for the owners. If the business is sued, the owner’s assets are protected. In addition, LLCs offer flexibility in terms of taxation and management structure.

To set up an LLC, you must file articles of organization with the state in which you want to form the LLC. Some states require additional paperwork, such as an operating agreement.

You will also need to choose a registered agent who will receive legal documents for the LLC. Using a registered agent service such as Northwest can be beneficial because it provides a physical address for the LLC and ensures that important legal documents are received in a timely manner.

Once your LLC is formed, you can use it to create a Stripe account and start accepting payments. However, you will also need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to open a business bank account and file taxes.

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

As a business owner in Nigeria, obtaining an Employer Identification Number (EIN) or Tax ID is necessary if you plan on using Stripe for payment processing.

An EIN is a unique nine-digit number the Internal Revenue Service (IRS) assigns to identify your business entity for tax purposes. It’s like a Social Security number for your business.

One benefit of having an EIN is that it helps to establish your business’s legal identity.

This is important when opening a business bank account, applying for credit, or filing taxes. Another benefit is that it allows you to use Stripe for payment processing, a popular and reliable option for businesses worldwide.

You can apply online through the IRS website or by mail to obtain an EIN.

You will need to provide certain information about your business, such as your name, address, and entity type. If you have a registered agent, they can help you with this process.

3. U.S Business Address

As a non-resident and business owner based in Nigeria, having a U.S. business address is necessary to open a Stripe account. Stripe requires a U.S. business address to verify your business entity and prevent fraud.

Getting a U.S business address as a non-resident can be a bit tricky, but it is possible.

One way to go about it is by using a virtual mailbox service. This service provides you with a U.S mailing address that you can use to receive physical mail and packages. Some popular virtual mailbox services include VirtualPostMail, Anytime Mailbox, and PostScan Mail.

Another option is to use a registered agent service. A registered agent is a person or company authorized to receive legal documents and other important mail on behalf of your business. They can also provide you with a U.S. business address.

Some registered agent services you can consider include Incfile, Northwest Registered Agent, and ZenBusiness.

It is important to note that using a U.S business address does not mean that you have to be present in the U.S. physically You can still run your business from Nigeria while using a U.S business address for verification purposes.

4. A U.S Phone Number

In order to create and verify a Stripe account in Nigeria, you will need a U.S. phone number.

Stripe requires a phone number that can receive SMS messages from U.S. numbers for account verification purposes.

Fortunately, obtaining a U.S. phone number is relatively easy using apps and services such as Dingtone and Skype. These apps allow you to create a virtual U.S. phone number that can receive SMS messages. Once you have obtained a U.S. phone number, you can use it to verify your Stripe account and start accepting payments.

It’s important to note that using a virtual U.S phone number for Stripe account verification is acceptable and does not violate any of Stripe’s terms of service.

As long as the phone number can receive SMS messages from U.S. numbers, Stripe will accept it for account verification purposes.

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

To receive payouts from Stripe, you must link a U.S bank account to your Stripe account.

This is necessary because Stripe processes payouts in U.S dollars, and having a U.S bank account makes it easier and cheaper to receive payouts.

There are several ways to get a U.S bank account, and we’ll discuss three of them briefly:

• Wise:

Wise is a money transfer service that allows you to receive and send money internationally.

With Wise, you can open a U.S bank account remotely and receive a U.S routing and account numbers. This makes it easy to link your Wise account to Stripe and receive payouts. However, Wise charges a fee for every transaction, so you should consider this before using their service.

• Payoneer:

Payoneer is another money transfer service that allows you to receive and send money internationally. With Payoneer, you can open a U.S bank account remotely and receive a U.S routing and account numbers.

This makes it easy to link your Payoneer account to Stripe and receive payouts. However, Payoneer also charges a fee for every transaction, so you should consider this before using their service.

• Mercury:

Mercury is a U.S. bank that allows non-U.S. residents to open a U.S. bank account remotely.

With Mercury, you can receive a U.S. routing number and account number, which you can use to link your Mercury account to Stripe and receive payouts. Mercury doesn’t charge any fees for receiving payouts from Stripe, making it a good option for those who receive frequent payouts.

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

If you are a foreigner looking to form an LLC in the United States, there are several states you can choose from.

The three most popular states include New Mexico, Delaware, and Wyoming. Each state has 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. One of the main advantages of forming an LLC in Wyoming is that it 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.

One of the major advantages of incorporating in Delaware is the state’s well-established legal system.

Delaware has a separate court system, the Court of Chancery, dedicated to hearing business-related cases. This court system has a reputation for being business-friendly and efficient. However, 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.

One of the main advantages of forming an LLC in New Mexico is that it is one of the few US states that does not require the name of the member or manager to be included in the filing of the certificate of formation. This fact alone makes New Mexico attractive for foreigners looking to form an LLC.

Why You Should Avoid California

California is a state to avoid when forming an LLC as a foreigner. California has high franchise tax fees, which can significantly burden small businesses. Also, California has strict regulations and complex compliance requirements that can be difficult to navigate for non-US residents.

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

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

Step 1. Sign up For Northwest Registered Agent

The first step in forming your LLC is signing up with Northwest Registered Agent.

This company will help you form your LLC and provide you with a registered agent, which is required by law. You can sign up for their services on their website.

Go to https://www.northwestregisteredagent.com/

You’ll be directed to the page below. Click on the button – “LET’S GET YOU STARTED.”

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 (Standard and Expedited) would determine the total amount.

For instance, below is that of Alabama ($334):

Here’s that of New Mexico ($98):

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.

This includes your company name, address, and other relevant information. Choose the physical and mailing addresses you want to use for the business.

The good thing about Northwest Registered Agents is that they offer the convenience of using their address as your business address, eliminating the need for a separate US address for your company.

Similarly, you can utilize their mailing services if you lack a mailing address option. If you require physical documents, you can include a US mailing address.

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. If you’re the only one/single-man business, leave it at one member and enter your name.

Step 5. Fill in Your Contact Details

This is where you fill in your contact details. These details will serve as your primary means of contact with Northwest. They can include your local Nigeria address, phone numbers, etc.

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 the following, free for 90 days: Domain name registration – 1 Free Year, Website – hosted Northwest, owned by you, Business email address, and Business phone.

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. You need an EIN as a foreigner or non-resident. It’s pretty easy to get this (and cheaper) without the help of registered agents.

But if you’d like to include it in your order, that’s also great!

However, for a fee of $200, Northwest Registered Agent will obtain your EIN or Tax ID. This is particularly beneficial if you lack a Social Security Number (SSN) or are a foreign entity.

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)

Basic Requirements

Before you can create a Stripe account, you will need to ensure that you have the following basic requirements:

• A valid business name
• A valid email address
• A government-issued ID
• An Employer Identification Number (EIN) if you have an LLC

Creating a Stripe Account Step-by-Step

Once you have met the basic requirements, you can create a Stripe account. Here is a step-by-step guide to help you create your account:

1. Go to the Stripe website and click on the “Sign Up” button.
2. Provide your email address and password to create your account.
3. Verify your email address by clicking on the link sent to your email.
4. Enter your business information, including your name, website, and address.
5. Enter your personal information, including your name and government-issued ID.
6. Enter the bank account information where you want to receive your payments.
7. Provide your EIN if you have an LLC.
8. Review and agree to Stripe’s terms and conditions.
9. Click on the “Activate Account” button to complete the process.

Once you have completed these steps, you can start accepting payments through your Stripe account. It is important to note that Stripe may require additional information or documentation to verify your account, so be prepared to provide any necessary information.

Why I Prefer Northwest Registered Agent For My LLC Formation?

If you’re looking to form an LLC in Nigeria, you’ll need a registered agent to receive legal documents on your behalf. Northwest Registered Agent offers a free one-year registered agent service when you hire them to form your LLC. This is a great deal, as many other registered agents charge over $1000 annually for this service.

Northwest Registered Agent also provides a free operating agreement with every LLC formation. This document outlines the LLC’s ownership and operating procedures and is essential for protecting personal assets.

One of the best things about Northwest Registered Agent is its pricing.

For just $39 plus state fees, you can start forming your LLC. This is unlike other registered agents, who charge over $1000 to form your LLC.

Northwest Registered Agent also allows you to use one of its local offices as your business address. This is great if you don’t have a physical office or want to keep your home address private.

Their pricing is transparent, with no annoying upsells or recurring monthly fees as everything is optional. They also keep your address off public record, ensuring your privacy.

Finally, Northwest Registered Agent offers a free domain, website, email, and business phone. This is a great way to get your business up and running quickly and easily.

What Are The Benefits Of Forming A US Limited Liability Company (LLC) For a Nigerian Stripe Account?

If you’re a Nigerian business owner looking to use Stripe for your online payment processing needs, forming a US Limited Liability Company (LLC) can offer several benefits.

Limited Liability Protection

One of the most significant benefits of forming an LLC is that it provides limited liability protection.

This means that the individual assets of LLC members cannot be used to satisfy the LLC’s debts and obligations. A member’s risk of loss is limited to the amount that the member invested in the business. This protection can be especially beneficial for Nigerian business owners looking to protect their assets from potential lawsuits or debts.

Credibility

Forming an LLC can also add credibility to your business. Operating as an LLC shows you are serious about your business and willing to take the necessary steps to protect it.

This can be especially important when dealing with international clients or customers who may be wary of doing business with a company that doesn’t have a formal legal structure.

Tax Benefits

LLCs offer several tax benefits as well. By default, LLCs are taxed as pass-through entities, meaning the business’s profits and losses are passed through to the owners’ tax returns. This can result in significant tax savings for Nigerian business owners, as they may be able to take advantage of tax deductions and credits they wouldn’t otherwise qualify for.

Ease of Doing Business

Finally, forming an LLC can make doing business in the US easier. Many banks and financial institutions require businesses to have a formal legal structure before they can open a business bank account or obtain financing. Operating as an LLC can make it easier to meet these requirements and access the financial resources you need to grow your business.

Frequently Asked Questions

How can I open a Stripe account from Nigeria?

Currently, Stripe is not officially available in Nigeria. However, if you have a registered business in a Stripe-supported country, you can open a Stripe account and use it to receive payments from customers worldwide. To open a Stripe account, you need to register a business in a Stripe-supported country, acquire a tax ID, secure a foreign phone number, address, and bank account, and then use these to sign up for a Stripe account.

How do I withdraw funds from my Stripe account in Nigeria?

If you have a Stripe account and want to withdraw funds from it in Nigeria, you can use Wise or Payoneer. Wise is a money transfer service that allows you to receive payments in your local currency and withdraw them to your bank account. Payoneer is a similar service that allows you to receive payments from Stripe and other online payment platforms and withdraw them to your local bank account.

Is it possible to use Stripe for online transactions in Nigeria?

Yes, it is possible to use Stripe for online transactions in Nigeria if you have a registered business in a Stripe-supported country, such as the United States.

You can open a Stripe account and use it to receive payments from customers worldwide. However, it is important to note that the country where the customer is located (e.g., Nigeria) is not the same as the country where the company has been registered (e.g., the United States).

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

As a Nigerian resident, you can obtain an EIN by applying to the Internal Revenue Service (IRS) of the United States. You can apply online or by mail using Form SS-4. However, you must have a registered business in the United States before applying for an EIN.

What are the alternatives to Stripe for online payments in Nigeria?

There are several alternatives to Stripe for online payments in Nigeria, such as Paystack, Flutterwave, and Remita. These platforms allow you to receive payments from customers worldwide and withdraw them to your local bank account.