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, and charities.

If you operate a single-person business and don't want to deal with the complexity and cost of operating as a limited company, a sole proprietor registration type may be right for you.

Similar in concept to a one-person company, a sole proprietorship 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. However, naming may differ by region - a sole trader in the UK is an Autonomo in Spain and a PFA (Persoană Fizică Autorizată) in Romania – but they are all essentially the same.

A sole proprietor business registration establishes your identity with fiscal tax and VAT authorities and your pension contribution system, among other things, although additional registrations may be required.

Income realised through your sole proprietorship is taxed according to your jurisdiction's corporate income tax system, which 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.

Recommended Reading

• Who can open a merchant account?
• To find out more about the merchant application process, see What is underwriting and why is it done?
• What documents do I need to provide?
• Want to read more? Check out our full collection of articles.