Hong Kong remains one of the best places to start a business in the world. The strong banking system combined with a solid legal framework makes Hong Kong a very safe place to start a business. Business operations are quite highly efficient and safe owing to the financial sector in Hong Kong. Stripe has proven to be a revolutionary step in Hong Kong’s financial structure.
Stripe is a great online payment service provider that offers a variety of financial services. Stripes supports merchants in accepting debit card and credit card payments along with various other payment types. If you have your business in Hong Kong and would want to be accompanied by a trusted payment platform then Stripe is a great solution for you. Join us till the end as we explain what Stripe is, how it processes payment, and how you can set up a Stripe account in Hong Kong.
Stripe as a Global Payment Platform
Stripe is a payment platform in Hong Kong that provides payment processing and financial services to businesses. It is capable of assisting you in everything from payment acceptance to subscription management. Business persons, marketers, and online traders who are interested in e-commerce payments work with Stripe. It is simply the best service provider out there. It supports numerous currencies and dozens of different card types, such as debit, China UnionPay, Visa, Mastercard and American Express, among many others. Other features of Stripe include invoicing and billing, fraud management, business loans and sales tax automation.
The benefits offered by Stripe include simple account opening, numerous ways of making payments, safety, worldwide access, management subscriptions, real-time tracking, meeting users’ growth needs, and extensive customer assistance. With Stripe, creating an account for businesses in Hong Kong is easy allowing you to extend your reach to customers. Its variety of payment options enables the business to accept various forms of payment from its customers.
Security is one of the biggest concerns of a business and this can be solved by Stripe. Setting up a Stripe account means shaking hands with security. Paying with Stripe is extremely safe for businesses and customers. This is because Stripe uses a highly secure HTTPS network for all its transactions. Moreover, the card details of a Stripe customer are encrypted and kept safe from potential online threats.
Is Stripe the right choice for your business?
If you are worried about Stripe’s services, then there is no need to worry, as it is the best service provider that one can find. Stripe is PCI compliant and is rated as a level 1 payment service provider. This makes it a very safe and effective processing platform for any company.
Stripe is primarily targeted at businesses making it the best choice for businesses. It can be used by individuals for personal projects that involve accepting payments online, provided the user complies with the requirements and regulations. Entrepreneurs can easily incorporate Stripe into their business structure and improve the payment processing system of their business.
As for the main consumers of the Stripe platform, the majority of them are limited companies. They use stripe accounts to facilitate the trading and they keep record of their revenue from their trades. In a way it proves lucrative to both, Stripe engages with limited companies. Stripe services’ requirements hence oblige limited companies to open Stripe accounts. Once they are done with the creation of the account they need to incorporate it in their website or application.
How does Stripe payment processing work?
Stripe works in a pretty simple manner, which makes the transactions fast and safe. The steps of payment processing are as follows:
- The card details are provided by the customer online or offline.
- Stripe then encrypts the card details.
- This data is sent to the bank, which is an acquirer.
- The payment is made to pass through the issuing bank’s credit card network
- The bank then approves or declines the payment.
- Then, a message of approval or rejection is sent to the customer.
How to set up a Stripe account in Hong Kong?
Follow these steps to set up a Stripe account.
1. Create a Stripe Account
Visit the Stripe website and click the “Start now” or “Sign up” button to create an account.
2. Provide Business Details
The next step is to provide your business details. These details include name, address, legal structure and personal information. The documents that need to be submitted for verification are listed below:
- Business Registration Certificate
- Certificate of Incorporation
- Company Information: legal name of the company, registered office address, and details of directors and shareholders.
- Identification Documents of Ultimate Beneficial Owners (UBOs) and authorized persons acting on behalf of the business.
- Hong Kong Identity Card (HKID), Passport (if HKID is not available) or other government-issued IDs may also be accepted.
- Proof of Address: Utility bills, bank statements, or lease agreements that are recent and clearly show the business name and address.
- Shareholding Structure – A declaration of the shareholding structure, including details about UBOs (individuals holding 25% or more ownership) and any intermediary entities involved.
- Authorization Letter (if applicable) – If the person is not a director or UBO, an authorization letter signed by a director must be provided, granting that person permission to act on behalf of the company.
- Compliance with KYC Regulations – Adherence to “Know Your Customer” (KYC) requirements is mandatory, which may involve providing additional information about the nature of your business and its operations.
3. Link Your Bank Account
Enter the bank account details in which you want to receive payouts from Stripe.
4. Verify Your Identity
The last step that is remaining in the account set-up procedure is verification. Stripe needs to verify your identity for legal purposes. Stripe only takes a few minutes to verify. Once the verification is done, your account is activated.
How long does it take for the verification and approval?
Stripe will review the information entered by you. It may request some additional documents to verify your identity and business. Although the verification and approval process of Stripe is quite fast, it might take a few days to verify an account in some cases. The verification process can take a few days up to a couple of weeks, depending on the complexity of your business and the completeness of your initial application.
What banks support Stripe in Hong Kong?
Currently, China local banks and most of the Hong Kong local banks are easily connected to Stripe. For example: Most of the foreign banks operating in China include; HSBC, Bank of China, Standard Chartered, Hang Seng and DBS. Kindly ensure that the bank account is in a position to accept ACH transfers or local currency payouts depending on the country of operation. ACH transfer is an electronic way of transferring money from one bank account to another bank account through Automated Clearing House Network.
Stripe Fees
Stripe charges a minimal fee to provide its services to the customers. It charges 3.4% + HK$2.35 per successful transaction for domestic cards. It charges 3.4% + US$0.30 per successful card charge when settled in USD (+ 0.5% for international cards and + 2% if currency conversion is required).
Get expert assistance for your business in Hong Kong
Startupr can assist you to open a business bank account which can be integrated with your Stripe account you have developed. The team of experts can help to set up and manage accounts individually. Do not hesitate to contact us.
Other services of Startupr are business formation, annual report, registered agent, mail forwarding, and many more.