UK Company Formation for E-commerce & Shopify — Activate Stripe in 2026
Is your dream to build a global e-commerce store on Shopify or WooCommerce and target customers in the US and Europe? The biggest hurdle is often the “payment gateway.” For Arab entrepreneurs, forming a UK Ltd company is the magic key to opening a Stripe UK account and activating Shopify Payments, providing a seamless checkout experience and high conversion rates.
In 2026, with new tax laws for cross-border selling, Eteform.com explains how to build your e-commerce empire from scratch while residing in the Arab world.
Advantages of a UK Company for Dropshippers and E-commerce
- Stripe & PayPal Business Activation: Accept all major credit cards (Visa, Mastercard, Amex).
- Digital Bank Accounts: Easily link Wise Business to your store to receive payouts instantly.
- Access to Amazon FBA UK: Expand into the largest e-commerce market in Europe.
- Low Overhead: No need for a physical warehouse or employees in London initially.
Requirements for Arab E-commerce Founders
No complex paperwork is needed, just these documents:
- A valid passport for the director.
- Proof of address (utility bill or translated bank statement).
- A website link (even if under construction) to show the business activity to banks.
Step-by-Step: Launching Your Global Store (How-To)
Step 1: Incorporate with the Correct SIC Code
You must choose code 47910 (Retail sale via mail order houses or via Internet). This code is what banks and Stripe require to classify you as an e-commerce merchant. See our SIC Code Guide.
Step 2: Secure a London Registered Office
This address will appear on your “Contact Us” page and in your email footers, giving customers confidence that they are buying from a real UK company. Eteform provides prestigious London addresses.
Step 3: Open a Bank Account and Link Stripe
After incorporation, we help you open a Wise Business account. Once you have your IBAN, you can activate Stripe UK and link it to Shopify in minutes. See our Banking Support.
Tax and VAT in E-commerce 2026
Here is where precision matters. If you sell goods:
- Inside the UK: Monitor the £90,000 threshold for mandatory VAT registration.
- To the EU: You may need to register for IOSS to facilitate smooth customs clearance.
- Outside the UK (e.g., the Gulf): Sales are often zero-rated, but shipping must be documented.
We recommend reviewing our Full VAT Guide.
Frequently Asked Questions (FAQ)
A: Yes. This is the classic dropshipping model. The UK company serves as the legal shell that allows you to receive money from customers and pay suppliers.
Q: Do I need a VAT number to start selling?
A: No. You can start without a VAT number as long as your UK-bound sales are below the threshold. Stripe and Shopify will allow you to operate without it initially.
Q: How do I protect my store from Stripe bans?
A: Ensure clear refund policies and accurate shipping times. Stripe monitors dispute rates closely.
Q: Can I use 3PL warehouses in the UK?
A: Yes. Using a UK third-party logistics provider speeds up shipping and increases trust, though it may make you liable for VAT from your first sale.
Conclusion: Your Next Store Starts in London
E-commerce is the language of the modern era, and a UK company is your passport to this world. Don’t let technical complexities stop you.
Ready to build your store? Order our E-commerce Package from Eteform.com and make your first sale.