PayPal in Pakistan
BannedHow to Get PayPal in Pakistan with a US LLC
PayPal has been banned in Pakistan since 2009. The government has promised to restore access multiple times, but it has not happened. The proven workaround: form a US LLC and open PayPal Business with your US credentials.
Quick Answer
PayPal has been banned in Pakistan since 2009 due to State Bank of Pakistan restrictions. The only legitimate way for Pakistani entrepreneurs to get a PayPal Business account is to form a US LLC ($599), obtain an EIN, and open a US bank account. This gives you a real US business entity that qualifies for a full PayPal Business account. The process takes 4-6 weeks.
Is PayPal Available in Pakistan?
No. PayPal suspended all services in Pakistan in 2009. The State Bank of Pakistan (SBP) cited concerns related to international payment regulations, anti-money laundering compliance, and foreign exchange controls. The ban affects all PayPal services: sending money, receiving money, and merchant payment processing.
Despite repeated announcements from government officials about restoring PayPal access (in 2016, 2019, 2022, and most recently in 2024), the ban remains fully in effect. No Pakistani citizen can create a PayPal account using a Pakistani address, CNIC, or local bank account.
This ban disproportionately affects Pakistan's massive freelancer workforce. Pakistan is the 4th largest freelancer market globally, with over 2 million freelancers on platforms like Upwork, Fiverr, and Freelancer. Many international clients prefer PayPal for payments, creating a significant barrier for Pakistani freelancers and IT professionals.
The proven workaround used by thousands of Pakistani freelancers and entrepreneurs is to form a US LLC, which provides a legitimate US business entity to open a PayPal Business account.
Last verified: 2026-03-31
Step-by-Step Guide
How to Get PayPal Business from Pakistan
By forming a US LLC, you get a legitimate US business entity that qualifies for a PayPal Business account. StartGlobal handles LLC formation, EIN, and bank account setup. You then sign up for PayPal directly.
Form a US LLC from Pakistan
Register a Wyoming or Delaware LLC through StartGlobal. The process is 100% remote and takes 3-7 business days. You do not need a US visa or SSN.
Learn moreGet an EIN (Tax ID)
We apply for your Employer Identification Number with the IRS. No SSN required. Your EIN is typically issued within 2-4 weeks.
Open a US business bank account
Open a Mercury or Relay bank account online using your LLC documents and EIN. No US visit required. Most accounts are approved within 1-2 weeks.
Open a PayPal Business account
Sign up for PayPal Business at paypal.com using your LLC name, EIN, US registered agent address, and US bank account. PayPal Business verification typically takes 2-5 business days.
Start sending and receiving payments
Once verified, send invoices, receive client payments, integrate with e-commerce platforms, and access PayPal buyer/seller protection. Transfer funds to Pakistan via Wise or wire transfer.
Requirements
What Pakistani Founders Need for PayPal
Valid Passport
Your Pakistan passport for identity verification during LLC formation and bank account setup.
US LLC
A registered US LLC in any state. Wyoming is recommended for international founders due to low fees and strong privacy.
EIN (Tax ID)
An Employer Identification Number from the IRS. This is your business tax ID, required for banking and payment platforms.
US Business Bank Account
A US bank account connected to your LLC. Mercury is the most popular choice for non-resident founders.
Pakistani Passport or CNIC
Your national identity card (CNIC) or Pakistani passport for identity verification. PayPal may request additional verification documents during onboarding.
Comparison
PayPal Alternatives in Pakistan vs. US LLC
Payoneer
Available in Pakistan and widely used by freelancers. However: higher fees (up to 3%), no buyer/seller protection, limited e-commerce integration, and many international clients and platforms specifically require PayPal.
Wise (TransferWise)
Available for receiving international transfers. Not a payment processor. Cannot accept credit cards, no invoicing for clients, no e-commerce integration. Useful as a transfer tool alongside PayPal, not a replacement.
JazzCash
PKR only. Domestic mobile payments only. No international payment capability. Not accepted by international clients or platforms.
Skrill
Available with restrictions. Higher fees than PayPal, less widely accepted by international clients, limited buyer/seller protection, and weaker e-commerce integrations.
US LLC + PayPal
A US LLC with PayPal Business gives you full PayPal capabilities: send/receive payments worldwide, buyer/seller protection, PayPal Checkout for e-commerce, invoicing, subscription payments, and integration with every major marketplace. Freelancers can receive payments from any PayPal user globally.
Common Concerns
Questions Pakistani founders ask about PayPal
Will the PayPal ban ever be lifted in Pakistan?
Government officials have promised to restore PayPal access multiple times (2016, 2019, 2022, 2024), but none have materialized. Rather than waiting indefinitely, many Pakistani founders form US LLCs to get immediate PayPal access along with Stripe, US banking, and other benefits.
Is it legal for Pakistani citizens to own a US LLC?
Yes. US LLCs are open to non-citizens and non-residents from Pakistan. You do not need a US visa, Green Card, or Social Security Number. This is a standard business structure used by international entrepreneurs.
What is the total cost?
StartGlobal charges $599 for LLC formation, which includes registered agent (1st year), EIN application, and bank account setup assistance. There are no hidden fees. Ongoing costs are the state annual report ($50-60/year) and registered agent renewal.
How long does the entire process take?
From Pakistan, the typical timeline is: LLC formation (3-7 business days), EIN (2-4 weeks), bank account (1-2 weeks). Most founders are fully operational within 4-6 weeks.
Simple Pricing
One price. Everything included.
No hidden fees. No surprise charges. Just everything you need to start.
What's included
- LLC Formation (any state)
- Registered Agent (1st year free)
- EIN / Federal Tax ID
- Business Bank Account Setup
100% Refund Guarantee
Not satisfied? Get a full refund, no questions asked.
Accuracy Guaranteed
If we make an error, we'll fix it at no cost.
24-Hour Response
Our support team responds within 24 hours.
Everything you need to form your LLC and start your business.
After the first year, registered agent service is $99/year. Annual compliance starts at $299/year.
FAQ
PayPal in Pakistan: Frequently Asked Questions
Everything Pakistani founders need to know about accessing PayPal
PayPal suspended all services in Pakistan in 2009. The State Bank of Pakistan cited concerns about international payment regulations and foreign exchange controls. The ban has been in effect for over 16 years with no resolution despite repeated government promises.
No. Using someone else's PayPal account violates PayPal's terms of service and can result in permanent account suspension, frozen funds, and potential legal issues. The legitimate approach is to form your own US LLC and open your own PayPal Business account.
Yes. This is one of the most common use cases. Pakistani freelancers form US LLCs to receive PayPal payments from international clients. You can link your PayPal Business account to your freelancing profiles and receive payments directly, rather than relying on Payoneer or wire transfers.
PayPal deposits to your US bank account (Mercury, Relay, etc.). You then transfer to Pakistan using Wise (best PKR rates), direct wire transfer, or remittance services. The two-step process adds 1-3 days but gives you access to the full PayPal ecosystem.
Yes. With a US LLC and PayPal Business account, you can add PayPal Checkout to your Shopify, WooCommerce, or custom e-commerce store. This is critical for conversion rates, as many international buyers prefer PayPal for its buyer protection.
Yes. PayPal Business accounts are designed for companies and offer features not available on personal accounts: custom invoicing, multi-user access, enhanced reporting, PayPal Checkout integration, and higher transaction limits. With a US LLC, you qualify for a Business account.
PayPal suspended services in Pakistan due to regulatory restrictions. The ban affects direct signups with Pakistan addresses and bank accounts. However, Pakistani entrepreneurs can access PayPal through a US LLC, which provides a legitimate US business entity.
There have been multiple announcements about restoring PayPal access in Pakistan, but none have materialized. Rather than waiting, many Pakistani founders form US LLCs to get immediate access to PayPal and other global payment platforms.
Not directly. PayPal does not support Pakistan as a business country. However, Pakistani founders can access PayPal by forming a US LLC, which gives them a legitimate US business entity to open an account with.
Yes. Forming a US LLC is a legitimate business practice used by international entrepreneurs worldwide. Your US LLC is a real US business entity, and PayPal accounts opened with valid US LLC credentials are fully compliant with their terms of service.
The typical timeline is 4-6 weeks: LLC formation (3-7 business days), EIN (2-4 weeks), bank account (1-2 weeks), then PayPal signup (1-2 business days). StartGlobal handles steps 1-3, then you sign up for PayPal directly.
PayPal typically requires your LLC Articles of Organization, EIN confirmation letter (IRS Letter 147C or CP575), operating agreement, and a US bank account. All of these are included in the StartGlobal formation package.
Form Your US LLC from Pakistan
Get access to PayPal, US banking, and global payment processing. Join thousands of Pakistani entrepreneurs who trust StartGlobal.
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