San Francisco-based e-commerce company Stripe has introduced Atlas, a program designed to help startups worldwide incorporate in the United States. Unveiled at the Mobile World Congress in Barcelona, Atlas offers a streamlined pathway for startups to establish a global presence.
Through Atlas, startups can incorporate in Delaware, open a U.S. business bank account with Silicon Valley Bank, obtain a tax identification number, start accepting payments using Stripe, and access expert tax and legal advice—all within a week. The initial cost for these services is $500, following a free trial for the first 100 users.
Comprehensive Support for Startups
Atlas provides essential services, including legal support from Orrick, tax advisory services from PricewaterhouseCoopers, and $15,000 in cloud services from Amazon Web Services. This comprehensive package is designed to ease the logistical and financial burdens startups often face, making global expansion more accessible.
Opportunity for African Startups
Stripe’s CEO, Patrick Collison, highlighted the program’s focus on emerging markets like Africa, Latin America, and parts of Asia. These regions, with a combined population of over six billion people, represent untapped opportunities for global growth.
African startups often face challenges like complex regulatory frameworks, which can delay incorporation. For example, setting up a business in Kenya or Nigeria can take about 30 to 31 days, respectively, compared to just six days in the U.S. Atlas could help these startups overcome such barriers, offering an expedited and efficient alternative.
Advantages and Considerations
Incorporating in the U.S. could make African startups more attractive to global investors, providing a gateway to international markets. However, founders must carefully consider potential downsides, such as the risk of double taxation. Access to high-quality legal and financial advisory services bundled with Atlas can help startups navigate these complexities.
Strategic Partnerships and Vision
Atlas is currently in beta and available through select partners, including Flat6Labs in Egypt, Knife Capital in South Africa, L5Lab in Nigeria, iSpace and MEST in Ghana, Nailab and Savannah Fund in Kenya, and Outbox in Uganda. These partnerships highlight Stripe’s commitment to supporting entrepreneurial ecosystems across the continent.While Atlas might not be a direct revenue stream for Stripe, it aligns with the company’s broader vision of becoming the foundational payments infrastructure for the internet. As startups integrate Atlas into their operations, Stripe positions itself as a critical enabler of global commerce.
For African startups, Atlas represents an opportunity to leap over regional hurdles and engage with the global market, setting the stage for long-term growth and innovation.
