Running an international e-commerce business from Nepal is not easy, and the biggest challenge is payment gateways. Most of the local payment service providers offer amazing service when it comes to accepting transactions within the nation. However, if you are an entrepreneur from Nepal that has got a large international customer base, then accepting credit card payments from US and Europe can become an extremely difficult situation sometimes. That is the key reason why more and more Nepal-based entrepreneurs are looking at establishing US LLCs.
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Let us first understand that this is not a trend. Basically, Nepal can be considered as a progressive nation which can have enormous potential when it comes to IT exports. This is also because of relaxed taxation structure that is implemented by the government on IT exports.
Nepal-based internet founders want to accept orders from international customers. They want to serve international buyers because it is a profitable affair. They can easily set up Shopify stores and they have their accounts on different platforms such as Upwork and Fiverr or Freelancer. Many entrepreneurs from Nepal have their own SaaS products and they can do exceptionally well if they have a US business entity.
If you are an entrepreneur in Nepal and you setup US LLC then it can boost your brand vale and you may also find it easy to approach investors. Please note that C-Corp is a better choice then LLC when it comes to investment as per VC’s viewpoint
Now, you may be thinking that is it really possible for a Nepali citizen to establish a US LLC without going to the US or without having a US visa?
The answer is that in most cases, yes, it is possible. You don’t need to travel outside the outside Nepal to establish the company. You can do it all sitting at your home and just by using your computer. The entire process is online. This includes setting up a LLC, getting the EIN, setting up a business bank account, and also potentially getting the approval of a US payment gateway.
The first step that you should take is to set up a US LLC. Most of the entrepreneurs in Nepal, they prefer to set up LLC in either Wyoming or Delaware, and there’s a fundamental reason to it. The cost is less and the compliance is also few fewer. To set up a US LLC in Delaware or Wyoming, it usually takes just a few working days and you do not have to travel outside the country. The next step is the EIN which is basically the tax ID number that gets associated with your limited liability company.
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Once you have the EIN number approved, then it becomes very easy for you to open a business bank account. All you have to do is approach fintech companies, and these companies offer bank account solutions, which work like a regular business bank account. These accounts come with an account number and routing number.
You will be able to accept B2C and B2B payments in this type of bank account. And you can also accept ACH transactions from local customers. These accounts are also compatible with various payment service providers. After activating the EIN and getting a bank account, the next step should be to approach payment service providers in United States and ask them if they would be interested in approving your account.
Remember, for this, they will perform a deep underwriting review. That means they will check your company documents, your KYC documents, along with that, they will also check your business model. And if your profile appears to be suitable to them as per their internal policies, then they will approve the payment gateway for your website.
Once the payment gateway is activated, then you can connect it to your website and start accepting credit and debit card payments from your customers. Remember that most of the US-based payment gateway providers allow merchants to accept transactions from US, Canada, and European Union customers as well. This type of setup can truly make your company a global brand.
International Payment Gateway Solutions in Nepal After Getting A US LLC
Business owners in Nepal that are primarily in sectors such as e-commerce, SaaS, digital service providers, online entrepreneurs, they can potentially get approval for an international payment gateway after they register a US LLC. This way, they will be able to accept payments from customers across the United States and also from other parts of the world.
But remember that the right solution totally depends on various factors, and these include the business model, customer location, expected processing volume, products or services that you sell, the structure of your US LLC, and the requirement of the payment service provider when you make the application.
When you get an international payment gateway solution in Nepal through your US LLC or UK LTD company, then that solution may allow eligible US LLC/UK LTD Company to accept credit and debit card transactions from customers in different nations and these include United States, United Kingdom, Europe, Canada, Australia, and other supported countries.
What type of payment instruments they will allow?
In most cases, PSPs support credit and debit card processing of different card brands, and they may also support ACH payment processing as well as various alternative payment modes also.
How international payment gateway solution can work for Nepal businesses?
A simple setup basically involves several components.
First, there has to be a Nepal-based entrepreneur. Then, you should have a US or UK business entity. Next, EIN/VAT as well as business bank account, and then you apply with payment service providers and payment gateway companies in the country where you have registered your business.
Along with that, you should also have a e-commerce website which the underwriting team will check. And once the account is approved, you should have international customers that are looking forward to buy products and services from you.
The important point is that forming a US LLC or a UK limited company from Nepal does not automatically guarantee that you will get the approval for a payment gateway or a bank account. Banks and payment service providers, they conduct their own underwriting review. They will check a lot of things that are associated with your company, and this include company ownership, business activity, website, products or services that you sell, transaction history, what kind of processing volume you are expecting and various compliance documents based on your industry.
Who May Need an International Payment Gateway in Nepal?
International payment gateway can be relevant for Nepal based businesses that are primarily selling to customers overseas and this can include e-commerce stores that sell their physical products to international markets including Buddhist literature, artifacts, decoration items, handicraft items.
Along with that, various other businesses might need such solution and this includes entrepreneurs that are into SaaS, software, IT, digital marketing, online education, consulting business, subscription based businesses, export oriented and online businesses and also those entrepreneurs that operate Shopify, WooCommerce and other custom made e-commerce websites which require acceptance of international credit and debit cards.
If you ever need any assistance in setting up a US LLC/UK LTD Company or need some kind of consultation in finding providers that may approve your payment gateway account for your US/UK business, then you can feel free to connect with us. At QuadraPay, we help Nepal-based entrepreneurs register international companies and find payment solutions. email us today or fill the short form on our site.