Can a sole proprietor get a merchant account?

To accept card payments, you need a merchant account. However, merchant accounts are provided to registered businesses only (not individuals). So you must apply as a registered business entity to qualify.

Business registration types include:

• companies limited by shares
• sole proprietors
• general and limited partnerships
• mutual associations
• sports and religious organisations
• charities.

If you operate a single-person business, you may be able to register as a sole proprietor. This way you won't need to deal with the complexity and cost of operating as a limited company.

A sole proprietorship is similar in concept to a one-person company. It is a popular form of business registration due to its simplicity, ease of setup, and nominal cost.

The good news is that a sole proprietor registration qualifies you as a business eligible to open a merchant account.

All EEA jurisdictions offer some form of sole proprietor business registration. A sole trader in the UK is an Autonomo in Spain and a PFA (Persoană Fizică Autorizată) in Romania. The naming may differ by region, but they are all essentially the same.

When you register as a sole proprietor, you establish your identity with fiscal tax and VAT authorities, and the pension contribution system, among other things. However, additional registrations may be required.

Income you earn through your sole proprietorship is taxed according to your jurisdiction's corporate income tax system. This may offer significant benefits over personal income, such as the ability to write off business expenses.

Always get proper legal and accounting advice when setting up any business, regardless of your business type and location.

Get started

Contact the CardCorp business team to get started. Visit our website and chat with our team for a free assessment of your business and merchant account pre-approval.