Traditional Sellers Adapting E-commerce
Extreme Commerce helps you to create a PayPal account in Pakistan. you need to create a legal entity in any country where a PayPal account can be created.
Extreme Commerce provides an expensive but a long term solution. This can be US, UK, Malaysia, Singapore, Hong Kong etc. This is a vidoe https://youtu.be/8NmJ_n5QdyQ guide to how to create a Paypal Account in Pakistan.
By law, PayPal cannot stop a Pakistani citizen to acquire a legal entity in another country and that legal entity from owning a PayPal business account. It is as simple as that. However, there are challenges such as using the IP address of that country instead of using Pakistani IP. And also some people do face a hard time while dealing with the PayPal performance team due to Pakistani passport. But 80%-90% do live with this method without facing any issues.
Once you set up this legal entity in this country and set up a bank account, it becomes easier for Pakistanis to travel to Malaysia. Setup an SDN BHD and set up PayPal under this SDN BHD once your bank account of SDN BHD is up and running. For example, Singapore and Sri Lanka have these accounts running.
However, my favorite method is through a US LLC. But you won’t be able to create a bank account in the US without flying there, unless you find a friend who can become the office manager of your newly formed LLC in the US. So he/she can walk into any bank and set up your bank account for your LLC. And with LLC you obtain ITIN later.
You can legally set up a PayPal account using your ITIN/EIN in the US on the address you have used for your LLC. If you have US ITIN then you also build your credit score as technically you are considered a US resident from a taxation perspective. And by law you legally own this PayPal account under your ITIN or under your EIN of your LLC.
Same can be done for UK LTD Company or those who want to apply for Estonian E-Residency and use their Estonian residence card to set up an Estonian corporation. However, you will need to fly to Estonia once to set up your bank account. Estonian corporation bank account is difficult and you need a business plan in hand to show your business export or ties with Estonia. You cannot tell them about your online ventures if you go for Estonian corporation etc.
In short, you have 2 ways of doing it.
1. Ability to fly to a country wherever you are forming a 100% foreign owned legal entity and able to set up a bank account as an owner of this foreign legal entity.
2. If you cannot fly then find a friend willing to act as an office secretary of your legal entity and walk into the bank to set up the bank account on your corporation’s behalf.
Once you have a legal entity + bank account you will have a 100% legally owned Paypal account. Even if PayPal asks for your ID you will provide them a Pakistani passport. Some people do get trouble with Pakistani passports however the majority go through it successfully. And for those with US LLC and bank account, you don’t forget to apply for your ITIN later as ITIN is a replacement of SSN for foreign aliens and PayPal amazon and eBay all accept it happily.
For accessing from Pakistan. My suggestion is to use VPS. People survive on VPN for years and years and some get suspended quickly. VPS is a wiser choice.
Sunny Ali, Founder of Extreme Commerce.